Sylvia Duruson
Safaricom, Kenya’s leading telecommunications provider, has entered into a strategic partnership with global payment giant Mastercard. This collaboration aims to accelerate the adoption of digital payment solutions and enhance cross-border remittance services in Kenya. The initiative is set to benefit over 636,000 merchants currently using M-PESA, Safaricom’s renowned mobile money service.
Kenya’s payment acceptance market has been experiencing significant growth. Mobile wallet payments, primarily driven by M-PESA, have shown a compound annual growth rate of 12.7 percent between 2020 and 2024. This trend underscores the increasing importance of digital payment solutions in the country’s economy.
The partnership leverages M-PESA’s extensive merchant network and Mastercard’s global payment infrastructure. It promises to deliver seamless, secure, and scalable payment solutions to merchants. This will enable them to serve customers across global markets more effectively. Additionally, the collaboration will enhance remittance services, making cross-border transactions more efficient and accessible.
Amnah Ajmal, Executive Vice President for EEMEA at Mastercard, expressed enthusiasm about the partnership. She emphasized their commitment to building an inclusive digital economy that benefits everyone, everywhere. The initiative aims to empower merchants to grow their businesses and contribute more significantly to the Kenyan economy.
By integrating Mastercard’s omnichannel acceptance solutions into M-PESA’s merchant ecosystem, the partnership is poised to scale digital payments across Kenya. This integration will also enhance Safaricom’s ability to support merchants in accepting various forms of digital payments. Furthermore, the incorporation of Mastercard’s infrastructure will improve cross-border money transfers, making them faster and more reliable.
Esther Waititu, Chief Financial Services Officer at Safaricom Plc, highlighted the alignment of this collaboration with their mission. She emphasized Safaricom’s commitment to delivering innovative, customer-centric products. The partnership combines Safaricom’s expertise with Mastercard’s global acceptance network, enabling businesses to provide more efficient and frictionless payment solutions to their customers, both within Kenya and internationally.
Both Safaricom and Mastercard have expressed their commitment to fostering innovation and financial inclusion within Kenya’s evolving digital landscape. The first initiatives resulting from this partnership are expected to roll out in the coming months. These developments will mark a significant step in Safaricom’s journey toward securing its acquiring license and providing merchants with cutting-edge digital payment solutions.
This collaboration represents a milestone in Kenya’s digital economy. It addresses the growing demand for efficient, secure, and accessible payment solutions. By combining Safaricom’s local market knowledge and extensive customer base with Mastercard’s global expertise and infrastructure, the partnership is well-positioned to drive significant changes in Kenya’s payment ecosystem.
The initiative is expected to have far-reaching effects on various sectors of the Kenyan economy. Small and medium-sized enterprises, in particular, stand to benefit from improved access to digital payment solutions and expanded market reach. This could potentially lead to increased economic activity and job creation.
As Kenya continues to position itself as a leader in digital innovation in East Africa, partnerships like this play a crucial role. They not only enhance the country’s technological capabilities but also contribute to its overall economic development. The collaboration between Safaricom and Mastercard is a testament to the potential of strategic partnerships in driving digital transformation and financial inclusion in emerging markets.
