A Safaricom agent carries out an M-Pesa transaction. Safaricom has signed a deal that allows subscribers to use its M-Pesa money transfer service to pay bills in more than 400 restaurants. FILE
Safaricom has signed a deal that allows subscribers to use its M-Pesa money transfer service to pay bills in more than 400 restaurants, deepening the uptake of electronic commerce in the country.
The telco made the agreement with Eat Out Kenya, an online restaurant guide, and Kopo Kopo, a firm that helps small and medium-sized businesses to accept payments for goods and service through mobile platforms.
“The service will be open to all Safaricom subscribers, and will initially target over 400 restaurants, hotels and motels across the country,” Safaricom said in a statement.
Mobile-based transactions are seen as key to unlocking virtual settlements at retail shops that for years have grappled with poor penetration of debit and credit card usage, concerns over their security, and concerns over the time gap between payment and settlement of transactions.
The deal is seen as another step towards cash-less transactions as electronic commerce entrenches itself in the country, with the telco betting on increased usage of M-Pesa in financial transactions to boost revenues from the service.
Safaricom’s signing up of more retailers is hinged on the expectation that use of the service by the estimated 16 million M-Pesa customers will boost the company’s top line, and help scale down its reliance on voice calls as the main revenue earner.
The firm has signed similar deals with more than 300 utility companies—allowing consumers to use M-Pesa to settle their monthly bills including water, electricity, and insurance.
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