The recent partnership between Safaricom and Mastercard marks a significant step in enhancing payment services and financial inclusion in Kenya. This collaboration aims to leverage Safaricom’s M-PESA mobile money platform, which serves over 636,000 merchants, alongside Mastercard’s global payment infrastructure to create a more robust digital economy.
On September 19, 2024, Safaricom, Kenya’s leading telecommunications company, announced its strategic partnership with Mastercard. The primary goal of this collaboration is to accelerate the adoption of payment acceptance and cross-border remittance services. With mobile wallet payments in Kenya projected to grow at a compound annual growth rate (CAGR) of 12.7% from 2020 to 2024, this partnership is timely and poised to capitalize on this growth trajectory.
Benefits for Merchants
The integration of Mastercard’s omnichannel acceptance solutions into M-PESA will provide merchants with seamless, secure, and scalable payment options. This enhancement will enable businesses to serve both local and international customers more effectively. Esther Waititu, Chief Financial Services Officer at Safaricom, emphasized that this collaboration unlocks new opportunities for M-PESA merchants and aligns with the company’s mission to deliver innovative, customer-centric products.
Amnah Ajmal, Executive Vice President at Mastercard for Europe, the Middle East, and Africa (EEMEA), highlighted the partnership’s commitment to building an inclusive digital economy that benefits everyone. This initiative is expected to streamline cross-border transactions, making it easier for Kenyan businesses and individuals to conduct international money transfers efficiently.
Economic Impact
This partnership not only enhances payment solutions but also supports Kenya’s broader economic growth. By empowering small and medium enterprises (SMEs) through improved access to digital payment systems, Safaricom and Mastercard are fostering financial inclusion in a country where mobile money is crucial for many underserved populations[3][4]. The collaboration is anticipated to contribute significantly to the Kenyan economy by enabling merchants to tap into global markets.
Future Initiatives
The first initiatives stemming from this partnership are set to roll out in the coming months as Safaricom works toward securing its acquiring license. This license will allow the company to process card payments on behalf of merchants, further solidifying its role in Kenya’s digital payment landscape[1][5]. The integration of Mastercard’s technology into M-PESA’s ecosystem will not only enhance merchant capabilities but also ensure faster and more reliable payment options.
The partnership between Safaricom and Mastercard represents a pivotal moment for Kenya’s digital economy. By combining their strengths—Safaricom’s extensive merchant network and Mastercard’s secure payment infrastructure—the two companies are set to transform the landscape of mobile payments and cross-border remittances in Kenya. This collaboration promises to unlock new opportunities for merchants while promoting financial inclusion across the nation, reinforcing Kenya’s position as a leader in mobile-based financial services.
