Last week, Safaricom announced a strategic partnership with TerraPay (Mobex Kenya). This collaboration aims to enable over 32 million M-Pesa customers to send and receive money to more than 200 million people in Bangladesh and Pakistan. The move has the potential to revolutionize remittance services in the region and might shape the future landscape of M-Pesa. Users can access this service through the M-Pesa Global service using the M-Pesa App or by dialling *334# and selecting M-PESA Global under the “Send Money”
Remittances have emerged as important economic accelerators for countless households and businesses worldwide especially in developing countries. In the context of Kenya, remittances play a vital role in connecting families to opportunities and enabling convenient cross-border transactions. They have become important to the country’s financial sector, providing a lifeline to many who rely on them for their daily needs and investments. According to the Central Bank of Kenya, remittances by Kenyans in the diaspora reached $4.027 billion in 2022, most of which came from the US and Europe.
M-Pesa has revolutionized the way Kenyans handle their finances. It has grown to become one of the most successful mobile money services globally, offering convenience, security, and affordability to millions of users. Over the years, M-Pesa has evolved from a basic money transfer service to a platform that allows customers to pay bills, buy goods and services, save money, and even access credit.
With the recent partnership with TerraPay, M-Pesa customers can now send and receive money to Bangladesh and Pakistan, broadening the platform’s global reach. This collaboration opens up access to one of the world’s largest remittance markets, providing Kenyans with a more connected and inclusive financial experience. TerraPay’s widespread partner network of 4.5 billion bank accounts and 1.5 billion mobile wallets enhances the platform’s capabilities, allowing users to conduct seamless international transactions.
The integration of TerraPay’s services into M-Pesa marks a significant step forward for both companies and could potentially redefine the future of the mobile money platform. By expanding its remittance services, M-Pesa has positioned itself as a global player in the digital financial services sector, enabling customers to transact on an international scale with ease and convenience.
Additionally, the impressive statistics from Safaricom’s last financial year demonstrate the growing popularity of the M-Pesa Global service. With over 917,000 customers conducting more than 31.8 million transactions totaling Kshs.418 billion, it is evident that Kenyans are embracing the benefits of cross-border remittances through M-Pesa.
The Impact on the Economy
The increased accessibility to remittances has the potential to significantly impact Kenya’s economy. Remittances are expected to enhance financial inclusion, as more Kenyans will gain access to financial services. This can lead to increased earnings, savings, investment, and overall economic growth.
As M-Pesa continues to support a large share of remittances into the country, it could have a positive impact on foreign exchange reserves, strengthening Kenya’s currency and improving its financial stability.