Safaricom has existing agreements with payments companies Western Union and Paypal Holdings.
Tuesday 12, March 2019
(Bloomberg) – Kenya’s Safaricom has partnered with a unit of Alibaba Group Holdings Limited that will facilitate electronic payments.
The deal extends Safaricom customers’ ability to use its mobile-money service, known as M-Pesa, outside Kenya as the company looks to establish the system as a global platform.
The partnership allows shoppers on AliExpress, Alibaba’s online retail service, to pay for purchases using M-Pesa and it targets micro-traders in Kenya who source goods and other supplies from China
Sitoyo Lopokoiyit, the Chief Financial Services Officer of Safaricom, said, “The partnership marks yet another important milestone not just in Safaricom’s efforts to take M-Pesa beyond Kenya, but to Kenya’s participation in the international e-commerce marketplace.”
Mobile money accounts for 30 per cent of Safaricom’s revenue and is forecast to grow 14 per cent in the coming financial year.
Additionally, around 46 per cent of international e-commerce transactions in Kenya are on AliExpress, added Sylvia Mulinge, Safaricom’s Chief Customer Officer.