Airtel and Telkom Kenya subscribers to pay for goods and services through Lipa Na M-Pesa till after the launch of a seamless money transfer through merchants attached to different operators.
T-kash and Airtel Money customers will now be able to make direct mobile money payments to any merchant till number on any network but exclude the ‘pay bill’ until next year. Users will have access to send money across mobile phone networks, meaning that cash can be sent from M-Pesa and reflected in an Airtel Money wallet.
“The introduction of merchant interoperability brings us closer to realizing a cashless economy, further enhancing a seamless digital transactions ecosystem that gives the consumer more choice,” said Telkom Kenya’s CEO, Mugo Kibati.
Lipa Na M-Pesa was launched in June 2013 and has aggressively recruited merchants across the country, including large and small businesses such as fuel stations, supermarkets, corner shops, and eateries.
Safaricom being the country’s largest telco, other companies such as Airtel and Telkom have found it difficult to compete in a market where mobile money is synonymous with M-PESA, and have been lobbying for compatibility between their T-Kash and Airtel Money services and the market leader.
“I am delighted to see Kenya take this big step to enable customers to make payments to mobile money merchants, irrespective of their mobile money provider. Our customers will also experience a dynamic, secure, convenient, and more affordable digital payment ecosystem for personal and business payments,” stated Airtel Kenya CEO, Prasanta Das SARMA.
M-Pesa is used by more than 30 million Kenyans and allows them to transmit money, make payments over the phone, save money, and borrow money. At the end of September, Safaricom controlled 258,000 mobile money agents, leaving rivals to control the remaining 31,255 shops.
Customers with T-Kash and Airtel Money wallets can pull up to any merchant or store that accepts payments from Safaricom M-PESA in form of Lipa Na M-PESA Till number and pay directly into the store’s mobile money wallet. This will increase the adoption and convenience of cashless transactions eliminating the hassle of transferring money across networks before making payments.
