Safaricom, M-PESA, and PayPal have joined forces to support account linking and simplified fund transfers across their networks.
Through this partnership, Safaricom and PayPal seek to enable over 35 million M-PESA customers and two million businesses and micro traders in Kenya to access PayPal’s global network. By initially linking their PayPal and M-PESA wallets, users can transfer funds from their PayPal account into their M-PESA accounts and vice versa. This solution focuses on improving the experience of customers and businesses transacting between the two platforms.
Currently, the service can be accessed by Safaricom M-PESA customers in Kenya. The two companies plan a wider rollout to other M-PESA markets in the upcoming period.
Inclusive and secure digital payments
According to Safaricom’s officials, with globalisation and digitisation continuing to reform how individuals and businesses connect, the collaboration with PayPal seeks to offer simplified, safe, secure, and inclusive digital payments. This partnership enables customers, businesses, and micro-entrepreneurs across Kenya to participate in the global digital economy by sending and receiving payments across over 200 markets. The move comes as part of Safaricom’s commitment to facilitate more opportunities through the capabilities of M-PESA.
Furthermore, PayPal emphasised that developing connections between the global economy and the local financial ecosystem represents the foundation for expanding digital financial inclusion. By working with Safaricom, the company plans to enable M-PESA customers across Africa to connect more efficiently to its international customer base.
Since its launch, M-PESA has been focusing on scaling financial inclusion and bridging the digital gap. Through M-PESA Kadogo, Safaricom waived fees for transactions of USD 0,77 and below, in turn making digital payments more accessible for individuals and businesses. Now, with Ziidi MMF, customers can invest from USD 0,77, promoting financial wellness and savings. The collaboration with PayPal is set to centre on the emergence and growing popularity of the gig economy, with more Africans accepting online jobs for clients globally.
At the same time, the move signals an expanding trend of interoperability between fintech providers to offer customers a digital financial ecosystem that meets their needs and demands by merging different features.
