A Partnership to Globalize M-PESA To Enable Secure Cross-Border Payments

Mother Teresa’s quote: “I can do things you cannot, you can do things I cannot; together we can do great things,” epitomises what meaningful partnerships can achieve.

This quote came alive last week with the one-of-a-kind innovation. We launched the first M-PESA GlobalPay Visa Virtual card that enables Kenyan consumers to make secure cashless global payments to businesses in over 200 countries through Visa’s global network.

 Customers can activate the card through the M-PESA App by selecting M-PESA GlobalPay, under “Pay” or “Grow” option. They can also activate it by dialling *334# then selecting option 6 for “Lipa Na M-PESA” followed by “M-PESA GlobalPay”. Both options will require the customer to use their secret M-PESA PIN.

 The M-PESA GlobalPay Visa Virtual Card builds on M-PESA’s security by empowering customers to generate a unique Card Verification Value (CVV) number for a 30-minute period. Customers will key in their M-PESA PIN each time they generate a CVV. This feature ensures all the details of the card required to perform a transaction are only known to the customer.

Once a customer performs a transaction with the card, they will receive an SMS with the prevailing exchange rate for the transaction value. Transactions will be subject to current M-PESA limits of KES 150,000 per transaction and KES 300,000 per day at the prevailing Forex rates.

This card aligns with Safaricom’s mission to accelerate new growth areas. It also is within our agenda of enriching our customer’s digital lifestyle and delivering a superior customer experience as we transition to become a technology company by 2025. For Visa, it affirms our vision statement to be the best way to pay and be paid, for everyone, everywhere.

Over the years, our respective growth has been founded through such strategic partnerships. This partnership, that began in April 2020, will play an important role in linking our customers using funds on M-PESA in a secure, seamless and simple manner, linking them to global e-commerce, entertainment, retail, business and when travelling abroad.

This partnership is timely as it addresses how to better meet consumer expectations that have increased exponentially in recent years. Consumers expect every digital experience - regardless of whether it is coming from a bank, a merchant or a FinTech - to offer the same fast, convenient, seamless payments. They want to be able to shop and pay anywhere, anytime, safely and at a low cost while also being able to spend and send money internationally as easily as at home. 

As evidenced by increased contactless payments and payments through apps and mobile phones during the COVID-19 pandemic, customers are also becoming more discerning of the power of technology for efficient payment solutions in the e-commerce space. That trend has significantly raised expectations and will continue to play a crucial role in driving the adoption and integration of virtual cards into systems moving forward.

Admittedly, the fast-developing e-commerce ecosystem, which includes marketplaces, payment gateways and online logistics, is helping to reduce barriers to trade across borders.

M-PESA has over the past fifteen years evolved from a simple money transfer service to become a robust payment platform and driver of financial inclusion for Kenyans. Safaricom has already transformed how money moves in Kenya, and we are excited to be working together to develop new and innovative payments products and services that can eliminate barriers to global commerce for merchants and consumers in sub-Saharan Africa, through Visa’s global footprint.

Visa is committed to expanding the payments ecosystem across Africa by opening the global marketplace for every single consumer. This partnership is an important step in helping to achieve this. Especially in this era where we are seeing an accelerated switch from traditional cash towards digital spending.

By leveraging our vast global network and experience as well as Safaricom’s local know-how and large subscriber base, we are charting a new path for digital payments. We remain optimistic that this partnership will go a long way in opening the global e-commerce market to Kenya's significant unbanked and underbanked population.

Kenya is one of the largest e-commerce markets on the African continent and is ranked 54th globally with revenues of US$2 billion in 2021. It is therefore important to ensure elimination of as many barriers to the customer’s experience for e-commerce adoption to continue to grow locally hence such partnerships.

As a sustainable businesses, the M-PESA Global Pay Visa Virtual Card, affords both our organizations to expand the payments environment in Africa and this partnership is a significant step toward achieving that goal. Furthermore, in addition to Kenya and Tanzania where customers can already use the card, we will gradually be rolling out the service across other M-PESA markets including the Democratic Republic of Congo, Mozambique, Lesotho and Ghana through the M-PESA Super App under a strategic partnership between M-PESA Africa and Visa.

We are optimistic about the future and the possibilities that exist to leverage on strategic partnerships such as this one to provide more solutions. Ultimately, together we can do great things.

I co-wrote this article with VISA’s Vice President and General Manager for East Africa, Corine Mbiaketcha Nana.

First published in the Sunday Nation on June 19th 2022.