M-PESA launches online payments

M-PESA aims to revolutionise e-commerce in Kenya with the launch of its online payment service. Lipa Na M-PESA online is a new service that will allow local traders to accept online payments for the purchase and sale of goods and services. 

Safaricom notes that Kenya has witnessed remarkable growth in online payments driven largely by the easy availability of high speed internet and an emerging middle class. The online payment space in Kenya has great potential, but industry experts say that lack of accessible and secure payment systems are hindering local uptake. 

According to Safaricom CEO, Bob Collymore; the ability to conduct financial transaction using a mobile phone is now a vital part of life for millions of Kenyans. The entry of M-PESA into the online space is a game changer that is bound to transform the conduct and uptake of online trade in Kenya. 

"Lipa Na M-PESA online is part of M-PESA's overall agenda to lead the evolution of the payments landscape in Kenya. The entry of M-PESA into the online space is a landmark move that will see more than 18 million M-PESA customers gain access to the online shopping experience either as entrepreneurs or as customers," said Collymore. 

The new service will leverage the deep penetration of the mobile phone and the proliferation of internet services to ease the shopping experience for customers while allowing merchants to match their goods and services directly to consumers. Kenya is experiencing one of the fastest growth rates of mobile phone and internet penetration anywhere in Africa. An estimated 29.7 million Kenyans have mobile phones, while about 14.3 million have access to the internet.
E-commerce continues to expand rapidly with the emergence of online shopping sites such as OLX, Rupu, Bid or Buy, Jumia, and Cheki. 

Lipa Na M-PESA online provides customers a chance to purchase items online. Customers select the items they want to pay for and pay with Lipa Na M-PESA online at the checkout point. The total cost for the items purchased online is deducted from the customer's M-PESA account. The customer only needs to key in their mobile number and they will receive a notification on their mobile phone to validate the transaction using their Bonga PIN. 


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