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May 5, 2020updated 28 Feb 2022 7:30am

Visa hooks up with Safaricom’s M-Pesa to push ecommerce

By Mohamed Dabo

Visa and Safaricom, which is Kenya’s largest telecom and operator of M-Pesa, have announced a partnership on payments and tech to boost ecommerce in East Africa.

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The alliance will make available M-Pesa’s extensive financial services network in the region to Visa’s global merchant and card network across 200 countries.

The companies will also collaborate “on development of products that will support digital payments for M-Pesa customers.” The parties say, the partnership, which is subject to regulatory approval, will allow them to join hands facilitate e-commerce and increase digital inclusion in the region.

On a continent that is still home to the largest share of the world’s unbanked population, Kenya has one of the highest mobile-money penetration rates in the world.

This is largely due to the dominance of M-Pesa in the country, which has 24.5 million customers and a network of 176,000 agents.

Visa’s Africa expansion strategy

Visa has been on a VC and partnership spree with African fintech companies. The global financial services giant has named working with the continent’s payments startups as core to its Africa expansion strategy.

At Visa’s annual call, Andrew Torre, Visa’s president for Central and Eastern Europe, Middle East and Africa (CEMEA), highlighted the content’s payments potential and its company’s plan to tap it.

“We’re partnering with non-conventional players to realize this potential — fintechs, neobanks and digital wallets — to reach the one billion consumer opportunity,” he said.

Located in Cape Town, Visa’s group general manager for Sub-Saharan Africa, Aida Diarra, oversees the company’s operations in 48 countries.

The company has a long track record working with the region’s large banking entities, but that’s shifted to smaller ventures.

Free Report
img

What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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