Visa just linked to Africa’s most powerful mobile payments network. The global monetary services business and Kenyan telecom Safaricom— operator of the M-Pesa mobile cash item– announced a collaboration today on payments and tech.
The plan opens to M-Pesa’s own extensive monetary services network in East Africa Visa’s worldwide merchant and card network across 200 countries.
The two companies will also team up “on development of items that will support digital payments for M-Pesa clients,” according to a Safaricom release. The partnership is still based on regulatory approval.
Safaricom’s M-Pesa app is probably the most acknowledged fintech product in Africa and has actually ended up being a global case research study in using mobile cash to increase monetary addition.
On a continent that is still home to the biggest share of the world’s unbanked population, Kenya has one of the highest mobile-money penetration rates in the world. This is mostly due to the dominance of M-Pesa in the nation, which stands as Africa’s sixth biggest economy. Across Kenya’s population of 53 million, M-Pesa has 245 million clients and a network of 176,000 representatives. The product’s mobile cash market share in the nation has hovered above 75%for several years.
Because introducing M-Pesa in Kenya in 2007, Safaricom has actually broadened the item to additional East African nations and added to the platform financial options, such as lending and small business services.
M-Pesa is as common to Kenyan culture as Coca-Cola remains in the U.S. The product’s easy to use and enables transfers and payments on any standard mobile phone via SMS
The information are still vague, however Visa and Safaricom likewise said they will utilize the partnership to assist in online commerce. The two payment service providers aim to “use a broadened set of mobile e-commerce capabilities to merchants and consumers by enabling safe and secure and hassle-free cashless payment solutions,” according to a Visa release sent out to TechCrunch.
The reach of its M-Pesa network will certainly offer Visa an extended presence in Africa.