In a significant move to bridge the virtual and physical realms of financial transactions, M-PESA, the widely-used mobile money platform has joined forces with Visa to introduce physical tap-to-pay cards.
With 32.1 million Kenyan users and over 60 million customers across eight African markets, M-PESA is stepping beyond its virtual GlobalPay offering to tap into the cash-driven retail sector.
The collaboration marks a departure from M-PESA’s previous limitation to virtual cards for online transactions, presenting a new tap-to-go solution for customers to make in-store payments seamlessly.
This development comes after SafaricomPLC, the company behind M-PESA, achieved PCI DSS compliance, further strengthening its partnership with Visa.
The physical cards are poised to play a pivotal role in a market where credit and debit cards have relatively low penetration.
Kenya sees only 6.35% of its population over 15 years old using credit cards and 22% using debit cards.
M-PESA, boasting a 97% market share, is well-positioned to catalyze a shift in the physical retail landscape.
Visa, gaining a formidable ally, now has an opportunity to expand its footprint in Africa, leveraging M-PESA’s massive user base and deep integration into Kenyan daily life.
The physical tap-to-pay cards will not only empower consumers for in-store purchases but also extend card solutions to other fintechs and financial institutions.
As M-PESA steps into the tangible realm of plastic, the financial landscape in Kenya undergoes a transformative shift, challenging traditional payment norms.
