Safaricom (NSE: SCOM), and Visa (NYSE: V) have partnered to enable the development of products that will support digital payments for M-PESA customers through its global digital payments platform.
The partnership will enable M-Pesa’s 24 million users and 173,000 local merchants will be linked to Visa’s global network, and over 3.4 billion Visa cards in more than 200 countries and territories.
The deal is subject to regulatory approval.
With this joint effort, Visa and Safaricom will seek to eliminate barriers to global commerce and offer an expanded set of mobile e-commerce capabilities to merchants and consumers by enabling secure and convenient cashless payment solutions.
“This partnership will play an important role in delivering even more value to our customers, linking them to even more opportunities especially in global e-commerce,” said Peter Ndegwa, CEO, Safaricom.”
Cashless payments continue to grow in popularity driven by increased globalization and digitization further creating demand for more innovative services.”
“Visa is committed to creating new and improved payment experiences for consumers and businesses everywhere, helping drive progress and unlock incredible new opportunities for all,” said Andrew Torre, President of Visa Central Europe, Middle East and Africa (CEMEA).
“We envision that our combined efforts in enabling seamless and interoperable financial services and products will eventually drive much desired financial inclusion in our communities,” said Corine Mbiaketcha, Vice President and General Manager for Visa in East Africa.
In the last financial year, Safaricom and Vodacom completed the acquisition of the M-PESA brand, product development, and support services from Vodafone through a newly-created joint venture, with 50-50 share ownership.
This initiative will enhance M-PESA’s growth in Africa by giving both Vodacom and Safaricom full control of the M-PESA brand, product development and support services as well as the opportunity to expand M-PESA into new African markets.