Safaricom, PayPal link M-PESA to global payment network

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Safaricom, through its mobile money platform M-PESA, has partnered with PayPal to allow more than 35 million customers and two million businesses in Kenya to send and receive money directly on PayPal’s global network.

The collaboration, announced on July 29, allows users to link their PayPal and M-PESA wallets to move funds between the two services. Safaricom said the move will help Kenyan businesses and individuals tap into the global digital economy, particularly the growing gig economy, where more Africans are working for clients overseas.

In a statement, Esther Waititu, Safaricom’s chief financial services officer, said the partnership would open up opportunities for customers and micro-entrepreneurs by giving them easier access to global markets.

Otto Williams, PayPal’s regional head for the Middle East and Africa, described the link as a step towards expanding digital financial inclusion.

M-PESA, which transacts more than $1.1 billion daily across its markets, has been central to financial inclusion in Kenya since its launch 18 years ago. Safaricom said it will expand the PayPal service to other M-PESA markets after the initial rollout in Kenya.

MTN Uganda also has an active partnership with Safaricom, which has enabled mobile money transactions to and from Uganda with M-Pesa. The benefits are likely to extend into the Ugandan market, operating cross-border money transfers.