Home Finance Safaricom’s M-Pesa, Visa offer virtual card for global transactions

Safaricom’s M-Pesa, Visa offer virtual card for global transactions

by Enochadmin

NANYUKI, Kenya, June 2 (Reuters) – M-Pesa, the cell phone-based African cash switch service owned by Kenya’s Safaricom Plc (SCOM.NR), and Visa Inc (V.N) launched a digital cost card on Thursday in a bid to seize a number of the continent’s $40 billion-a-year subscriptions market.

The M-Pesa International Pay Visa Digital card will enable customers to securely pay 100 million international retailers like Amazon and Alibaba from their cell phones, with out the necessity for bank cards or accounts with processors similar to PayPal.

The digital card can be focused on the fast-growing subscriptions markets in Africa for companies like Netflix (NFLX.O) and Spotify (SPOT.N), stated M-Pesa Africa Managing Director Sitoyo Lopokoiyit.

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The digital card is initially out there to greater than 30 million M-Pesa customers in Kenya and will probably be rolled out to Tanzania, the place testing is occurring, Mozambique, Congo, Lesotho and Ghana by April 2023, Lopokoiyit stated.

M-Pesa launched 15 years in the past as a easy cash switch service and now accounts for roughly half of Safaricom’s income as customers use it for purchases, financial savings, borrowing and insurance coverage. Safaricom is partly owned by South Africa’s Vodacom Group (VODJ.J).

“Numerous M-Pesa prospects at the moment don’t have financial institution accounts… it (the digital card) is a catalyst for e-commerce and digital funds,” stated Visa official Alex McCrea.

Transactions will probably be topic to the M-Pesa platform’s limits within the native Kenyan forex of 150,000 shillings ($1,285) for a single transaction and a day by day restrict double that. Customers will be capable of use the digital card whereas travelling overseas.

Transactions on the digital card will probably be secured with a singular safety code despatched to the consumer’s cell phone and the consumer’s M-Pesa private identification quantity.

($1 = 116.7500 Kenyan shillings)

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Reporting by Duncan Miriri; Modifying by David Holmes and Cynthia Osterman

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