Key Points
- Safaricom and Mastercard formed a strategic alliance to enhance digital payment acceptance and cross-border remittances in Kenya.
- Over 636,000 M-PESA merchants will benefit from Mastercard's global payment infrastructure, expanding their reach to international markets.
- Ndegwa bolstered his influence by increasing his personal stake in Safaricom, demonstrating confidence in the company's future.
Safaricom, East Africa's telecom giant led by Kenyan tycoon Peter Ndegwa, has secured a strategic alliance with Mastercard to enhance payment acceptance and improve cross-border remittances in Kenya. The collaboration is set to accelerate the growth of digital payments, reinforcing Safaricom’s leadership in financial innovation across the region.
The partnership is poised to benefit more than 636,000 merchants using Safaricom’s M-PESA mobile money platform, as Kenya’s digital payments landscape continues its rapid expansion. Mobile wallet payments, driven largely by M-PESA, are projected to grow at an annual rate of 12.7 percent from 2020 to 2024, further cementing M-PESA’s dominant market presence.
The initial phase of the partnership is set to roll out in the coming months, with Safaricom planning to acquire a license that will further enhance its digital payment capabilities. Both companies have committed to promoting financial inclusion and fostering innovation within Kenya’s rapidly evolving digital economy.
Driving global payment solutions
By integrating M-PESA’s extensive merchant network with Mastercard’s global payment infrastructure, the partnership aims to deliver secure, seamless, and scalable payment solutions.
This will enable Kenyan merchants to expand their reach to international markets, while also improving remittance services for cross-border transactions.
Mastercard's omnichannel payment solutions will further accelerate the adoption of digital payments, facilitating faster and more reliable money transfers.
"We are thrilled to partner with Safaricom in building an inclusive digital economy that benefits everyone," said Amnah Ajmal, Executive Vice President for Eastern Europe, Middle East, and Africa at Mastercard. "This partnership empowers merchants to grow and significantly contribute to the Kenyan economy."
Esther Waititu, Chief Financial Services Officer at Safaricom, added: "Our collaboration with Mastercard unlocks new opportunities for M-PESA merchants, in line with our mission to deliver innovative, customer-centric solutions. With Mastercard’s global network, businesses can now offer more efficient and seamless payment options domestically and internationally."
Innovative solutions shape Safaricom's future
Safaricom, founded in 1993 and headquartered in Nairobi, is a leading provider of telecom services in Kenya, offering a wide range of products including mobile, fixed-line, M-PESA payments, voice services, and cloud hosting.
Under Ndegwa’s leadership, the company has solidified its dominance in the Kenyan market and made strategic expansions across Africa.
Earlier this year, Ndegwa increased his personal stake in Safaricom by acquiring 8.64 million shares, further consolidating his influence in the telecom sector. Additionally, the company launched a micro-payment feature allowing customers to purchase airtime for as little as Sh1.00 ($0.0068) via M-PESA, underscoring its commitment to financial inclusivity.
Safaricom's recent foray into Ethiopia has also expanded its footprint in the region. The company has partnered with Huawei to explore innovative solutions like "Scan & Order" for restaurant menus, signaling its focus on advancing digital technology across its markets.
[billionaires.africa]