As of now, M-PESA provides virtual payment cards to a vast user base of over 60 million customers and facilitates transactions with 925,000 merchants across its markets.
M-PESA is set to introduce physical debit cards through a strategic partnership with Visa, a leading global digital payments giant. These forthcoming physical cards will extend the purchasing capabilities for M-PESA customers, expanding beyond the current virtual GlobalPay offering.
As part of this strategy, Safaricom has achieved PCI DSS compliance, which builds on our strategic partnership with Visa.
M-PESA Africa said
“As part of this strategy, Safaricom has achieved PCI DSS compliance, which builds on our strategic partnership with Visa, expanding M-PESA’s payment capabilities to include card issuing and acquisition,” M-PESA Africa said.
“PCI DSS compliance enables M-PESA to begin offering tap-to-pay card payments for more than 60 million customers, 5 million businesses, and 100,000 developers across our entire ecosystem.”
While M-PESA has significantly revolutionized digital payments in Kenya, its impact on the physical retail space has been relatively limited.
Data on credit and debit cards usage in Kenya
Recent statistics reveal that the value of credit and debit card transactions in Kenya amounted to Ksh 18.8 billion in August 2023, experiencing a slight decline from Ksh 19.1 billion in July 2023. The total number of transactions in August 2023 reached 2.4 million, down from 2.5 million in the preceding month. As of August 2023, Kenya had 3,097 ATMs, 16.9 million ATM cards, and 42,986 POS machines.
The Central Bank of Kenya (CBK) has actively advocated for the utilization of credit and debit cards as part of its national payments system strategy. This strategic initiative aims to bolster efficiency, safety, and inclusion within the payments sector.
The Central Bank of Kenya (CBK) has collaborated with Visa to launch the Kenya Electronic Payment and Settlement System (KEPSS). This real-time gross settlement system facilitates cross-border payments within the East African Community (EAC) and the Common Market for East and South Africa (COMESA) regions.
The CBK has implemented guidelines and regulations for payment service providers, encompassing card issuers, acquirers, and switches, to ensure adherence to compliance standards and enhance consumer protection.
Despite these efforts, credit and debit cards encounter challenges in Kenya, including low penetration rates, elevated costs, fraud risks, and societal stigma. Presently, only 6.35% of Kenyans aged 15 and above possess credit cards, while debit card penetration stands at 22%.
Visa stands to benefit from its partnership with M-PESA, gaining access to a vast user base and a robust presence in Kenyan daily life. This collaboration also enables Visa to tap into M-PESA’s platform and engage with the rapidly expanding digital payments market in Africa.
The upcoming physical debit cards from M-PESA in collaboration with Visa will be operational across the eight countries where M-PESA currently operates.
“Fintechs and financial institutions can also use our card processing capabilities, enabling them to offer complete mobile and card payment solutions,
M-PESA
“Fintechs and financial institutions can also use our card processing capabilities, enabling them to offer complete mobile and card payment solutions,” M-PESA said in a statement on X.
