Some time back we wrote an article about how Safaricom was under-utilizing the Mpesa platform. One of the aspects highlighted was the lack of a debit card which is linked to one’s Mpesa account. Such a card would remove the need to confirm numbers and would make payments easier at establishments with POS systems. A connection to Visa and Master Card would be a welcome addition in that it would allow one to make online payments.
To our pleasant surprise Safaricom yesterday announced that they have started trials for a PIN based, Near Field Communication (NFC) based ‘Tap and Go’ card. This card will allow for seamless integration with an existing Mpesa account. The card refered to as ‘Lipa na Mpesa’ is currently undergoing a pilot phase amongst Safaricom staff with plans to extend the service to university students, allowing users to make payments at select merchants.
Shifting consumer trends have seen services like debit cards and Lipa Na Mpesa thrive as consumers embrace more efficient, cashless means of paying for goods and services. Hence the investment in the card to capture this market. Apparently eight out of ten payments in Kenya are still cash based hence there is an opportunity for continued growth of alternative payment solutions.
Bob Collymore, CEO, Safaricom had this to say, “As the M-PESA ecosystem continues to expand, we continue to test the boundaries of the service to identify how we can continue to extend the gains of the platform to an increasing number of customers and businesses.”