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

Author of the article: NANYUKI — M-Pesa, the mobile phone-based African money transfer service owned by Kenya’s Safaricom Plc, and Visa Inc launched a virtual payment card on Thursday in a bid to capture some of the continent’s $40 billion-a-year subscriptions market. The M-Pesa Global Pay Visa Virtual card will allow users to securely pay…
Safaricom’s M-Pesa, Visa offer virtual card for global transactions

Author of the article:

NANYUKI — M-Pesa, the mobile phone-based African money transfer service owned by Kenya’s Safaricom Plc, and Visa Inc launched a virtual payment card on Thursday in a bid to capture some of the continent’s $40 billion-a-year subscriptions market.

The M-Pesa Global Pay Visa Virtual card will allow users to securely pay 100 million foreign merchants like Amazon and Alibaba from their mobile phones, without the need for credit cards or accounts with processors such as PayPal.

The virtual card is also targeted at the fast-growing subscriptions markets in Africa for services like Netflix and Spotify, said M-Pesa Africa Managing Director Sitoyo Lopokoiyit.

The virtual card is initially available to more than 30 million M-Pesa users in Kenya and will be rolled out to Tanzania, where testing is going on, Mozambique, Congo, Lesotho and Ghana by April 2023, Lopokoiyit said.

M-Pesa launched 15 years ago as a simple money transfer service and now accounts for roughly half of Safaricom’s revenue as consumers use it for purchases, savings, borrowing and insurance. Safaricom is partly owned by South Africa’s Vodacom Group.

“A lot of M-Pesa customers today don’t have bank accounts… it (the virtual card) is a catalyst for e-commerce and digital payments,” said Visa official Alex McCrea.

Transactions will be subject to the M-Pesa platform’s limits in the local Kenyan currency of 150,000 shillings ($1,285) for a single transaction and a daily limit double that. Users will be able to use the virtual card while traveling abroad.

Transactions on the virtual card will be secured with a unique security code sent to the user’s mobile phone and the user’s M-Pesa personal identification number.

($1 = 116.7500 Kenyan shillings) (Reporting by Duncan Miriri; Editing by David Holmes and Cynthia Osterman)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Asian currencies dip as inflation, recession woes loom
Read More

Asian currencies dip as inflation, recession woes loom

Author of the article: Most emerging Asian currencies were weighed down on Monday, with Thailand’s baht leading the laggards in a holiday-thinned trade, as Financial Post Top Stories Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc. By clicking on the sign up button you consent…
Musk says Tesla could lower vehicle prices if inflation slows
Read More

Musk says Tesla could lower vehicle prices if inflation slows

This advertisement has not loaded yet, but your article continues below. Author of the article: Article content Tesla Inc Chief Executive Officer Elon Musk said on Friday the electric automaker could lower prices for cars if inflation calms down. Musk, who has over 100 million followers on Twitter, was replying to a tweet on Friday…
China 2021 aluminum output rises to 38.5 mln tonnes – stats bureau
Read More

China 2021 aluminum output rises to 38.5 mln tonnes – stats bureau

This advertisement has not loaded yet, but your article continues below. Author of the article: Article content BEIJING — China’s aluminum output for 2021 hit a record high, official data showed on Monday, though monthly output in December fell from the corresponding period in the previous year. The world’s top producer of the metal churned…
Japan’s wholesale prices extend brisk gains as weak yen inflates import costs
Read More

Japan’s wholesale prices extend brisk gains as weak yen inflates import costs

Author of the article: TOKYO — Japan’s yen-based import prices surged at a record pace in June, data showed on Tuesday, keeping wholesale inflation elevated as the currency’s sharp slump continued to weigh on a fragile economic recovery by boosting commodity costs. The data highlights the challenge Prime Minister Fumio Kishida faces in cushioning the…