Safaricom Plc, Kenya’s leading telecommunications and financial services provider, has announced a groundbreaking partnership with UK-based payments infrastructure company TerraPay (Mobex Kenya). This collaboration aims to revolutionize cross-border remittances by enabling over 32 million M-PESA customers in Kenya to send and receive money to Bangladesh and Pakistan, reaching a combined population of over 200 million people.
Through this strategic alliance, Safaricom customers gain access to TerraPay’s vast network of 4.5 billion bank accounts and 1.5 billion mobile wallets, providing them with fast, efficient, and affordable payment options on a global scale. This move further solidifies M-PESA’s position as a leading mobile money platform with tremendous international reach.
Ambar Sur, Founder and CEO of TerraPay, expressed his excitement about the partnership, emphasizing that it will foster global scalability and offer customers a wide range of secure and efficient payment options. He highlighted the inclusivity of the financial ecosystem, which is enabled by TerraPay’s extensive partner network.
The impact of this partnership on the Kenyan economy is significant. Peter Ndegwa, CEO of Safaricom, stated that the collaboration opens up opportunities for Safaricom customers to connect with more than 200 million individuals in Bangladesh and Pakistan. This expansion is expected to create more avenues for cross-border trade, investments, and remittances, thus enhancing Kenya’s economic growth prospects.
Moreover, Safaricom’s M-PESA Global service has already been instrumental in facilitating cross-border transactions. In the last financial year, M-PESA Global processed over 31.8 million transactions, amounting to more than Kshs. 418 billion. With the addition of Bangladesh and Pakistan to its coverage, the service is poised for even more remarkable growth and contribution to Kenya’s economic development.
The partnership with TerraPay adds the company to the list of over 35 partners in Safaricom’s M-PESA Global service, which enables customers in Kenya to send and receive money and make payments across more than 170 countries worldwide. This network continues to expand, providing Kenyans with greater financial access and international connectivity.
TerraPay’s CEO, Ambar Sur, pointed out that the partnership will spur the development of mobile financial service operators, enabling them to scale globally and empowering Safaricom customers with fast and affordable borderless payment options. He reiterated that the collaboration aligns with TerraPay’s vision of providing an inclusive global financial ecosystem.
This move comes at a time when the adoption of mobile money payments in Kenya is on the rise, following the Central Bank’s push for digital financial services. By embracing digital payments and fostering financial inclusion, Safaricom and TerraPay aim to create a financially inclusive payments ecosystem while empowering customers with greater financial independence.
As this partnership takes flight, both companies are optimistic about the potential to expand their services to additional regions like India and Nepal in the near future. The move is set to bring even more significant opportunities for financial empowerment and economic growth, not just for Kenya but for the entire region.
By: Montel Kamau
Serrari Financial Analyst
20th July, 2023
photo source: Google
