Mobile payment collaboration between Safaricom and PayPal strengthens online and mobile payment linkage in Kenya.
In a strategic move to connect local and international payment platforms, Safaricom and PayPal have announced a collaboration that enables M-PESA users in Kenya to send and receive payments across PayPal's global network. This integration allows over 35 million M-PESA users and 2 million Kenyan businesses to access and transact within PayPal’s network spanning more than 200 countries.
With this partnership, M-PESA users can now link their wallets directly with their PayPal accounts, facilitating seamless, direct transfers of funds between the two platforms. This development simplifies participation in international e-commerce, freelancing payments, and cross-border remittances for the growing population of African freelancers and gig workers earning income online.
The collaboration removes traditional barriers of converting funds between local mobile money and international payment systems, creating a more inclusive and efficient ecosystem linking Kenya's domestic mobile money system to a global digital economy. Safaricom’s CFO, Esther Waititu, highlighted that this partnership improves the ease of global transactions for Kenyan users, supporting the growing gig economy and digital entrepreneurship sectors relying heavily on both M-PESA and PayPal.
PayPal’s regional head, Otto Williams, emphasized the partnership’s role in advancing financial inclusion by bridging local financial ecosystems with the global economy. The service is currently available in Kenya, with plans to expand to other African markets where M-PESA operates.
M-PESA processes approximately $1.1 billion daily, while PayPal has over 400 million active users worldwide, making this collaboration a significant enabler for connecting local mobile money users to a vast international payments system.
This initiative is part of M-PESA's ongoing financial inclusion efforts, including M-PESA Kadogo and Ziidi MMF, promoting savings and micro-investing. The collaboration is also aligned with Safaricom's commitment to unlocking opportunities and transforming lives through M-PESA.
The collaboration between Safaricom and PayPal highlights a broader trend of interoperability between fintech platforms, aiming to create more inclusive digital financial ecosystems. This move is expected to empower customers and entrepreneurs, enabling them to transact seamlessly across borders without leaving their familiar M-PESA platform.
Sources: Kenyan Wallstreet
[1] Safaricom and PayPal Announce Strategic Collaboration to Empower Customers and Entrepreneurs. (n.d.). Kenyan Wallstreet. Retrieved September 15, 2022, from https://www.kenyanwallstreet.com/safaricom-and-paypal-announce-strategic-collaboration-to-empower-customers-and-entrepreneurs/
[2] Safaricom and PayPal Collaboration to Boost Financial Inclusion in Africa. (n.d.). Kenyan Wallstreet. Retrieved September 15, 2022, from https://www.kenyanwallstreet.com/safaricom-and-paypal-collaboration-to-boost-financial-inclusion-in-africa/
In this partnership between Safaricom and PayPal, M-PESA users can now link their wallets directly with their PayPal accounts, enabling seamless, direct transfers of funds using technology, which simplifies participation in international e-commerce, freelancing payments, and cross-border remittances. This collaboration in the field of finance represents a significant step towards bridging the gap between local and global business networks.
