New online payment solution to curb cyber fraud

Kenya’s fintech startup JointPesa has launched an online payment solution that will see online buyers and sellers cushioned against frauds.

The new platform, dabbed ‘JointPesa, is a partnership with Finserve Africa.

The application acts as a temporary custody of resources that allows both parties to engage in transactions without having to worry of defaults, safety or product losses.

JointPesa founder Valentine Kilonzo said cyber fraud still poses a huge challenge in the adoption and development of e-commerce in the country.

“What JointPesa aims at is eliminate online robbers pretending to be either serious buyers or sellers who sell or order goods to be delivered to them with the intention of robbing the merchants,” said Ms Kilonzo.

The platform synchronises digital payment solutions such as mobile payments or electronic payments with an e-wallet as a mode of payment. Buyers will be required to make a deposit into their e-wallets before purchasing good or services.

MPesa, Cards and PesaLink deposit will attract a 2.5 percent and Sh55 charges on amount between Sh0 and Sh70,000 into the e-wallet. Meanwhile, amount between Sh500,000 and 999,999 will attract Sh100.

Purchase through the platform will attract a commission of 2.5 percent plus Sh55 or Sh100, depending on the amount being transacted.

She added that majority of Kenyans are skeptical in buying goods from online platforms as they fear losing their money. “We have a case where a seller delivered cameras worth half a million to a client only to be robbed at gunpoint forced to leave the cameras without pay,” she said.