Visa, a global leader in digital payments, has awarded Safaricom PLC., Kenya’s largest telecommunications provider, the prestigious Payment Facilitator Certificate. This marks a significant milestone in their ongoing partnership, designed to empower Safaricom’s merchant ecosystem by introducing a broader range of payment options, including card payments through Visa’s CyberSource Payment Gateway. This collaboration aims to transform the way merchants accept payments, ultimately benefiting the over 600,000 businesses already using Safaricom’s services.
Expanding Merchant Payment Capabilities
The awarding of the Payment Facilitator Certificate allows Safaricom to offer its merchants more flexibility when accepting payments, integrating Visa’s technology to support card payments from all card networks. This move is particularly significant as it allows Micro, Small, and Medium Enterprises (MSMEs)—which form the backbone of Kenya’s economy – to accept a wider array of payment methods. MSMEs will now have the capability to accept debit and credit cards, expanding beyond mobile money payments like M-PESA.
Safaricom merchants will use Visa’s CyberSource Payment Gateway, a leading global payment platform that ensures secure and reliable transactions. With CyberSource’s integration, merchants can process payments both online and in face-to-face interactions, making the service accessible to businesses of all sizes and sectors.
Key Benefits of the Visa x Safaricom Partnership
- Enhanced Payment Flexibility
Merchants can now accept payments not just via M-PESA, but also through card payments from all major card networks supported by Visa’s CyberSource Gateway. This flexibility is crucial in a market where consumers increasingly prefer multiple payment options. - Empowering MSMEs
MSMEs will be able to tap into a broader market by accepting card payments, which opens doors to new customers who prefer using cards over mobile money. This initiative acknowledges the significant contribution MSMEs make to Kenya’s GDP and aims to offer them modern solutions to thrive in a digital economy. - Security and Reliability
The CyberSource Gateway includes Visa’s advanced security features, such as the World-Class Decision Manager, which helps prevent fraud and ensures secure transaction processing. This is particularly important for businesses looking to build trust with their customers. - Seamless Integration with Existing Solutions
Safaricom and Visa’s partnership is not new. This new initiative builds on the 2022 launch of the M-PESA GlobalPay Virtual Visa Card, which allowed consumers to make international payments online. Now, Safaricom is giving its merchants access to Visa’s payment infrastructure, offering a seamless and integrated solution for both local and international transactions.
Statements from Visa and Safaricom
Chad Pollock, General Manager and Vice President for Visa East Africa, expressed his excitement about the strengthened partnership: “We are thrilled to present the Payment Facilitator Certificate to Safaricom and take our partnership to the next level. This collaboration underscores our commitment to providing cutting-edge payment solutions that drive growth and efficiency for merchants. While in 2022 we opened the M-PESA consumers to the world with the GlobalPay Visa Virtual Card, we are now giving over 600,000 merchants access to the world of consumers.”
Esther Waititu, Chief Financial Services Officer at Safaricom, highlighted the role of Visa in advancing Safaricom’s payment ecosystem: “Our partnership with Visa has been instrumental in enhancing our payment capabilities. The introduction of card payments through Visa’s CyberSource gateway is a testament to our shared vision of empowering merchants with diverse and secure payment options. At Safaricom, we continuously develop holistic solutions to our clients, and this milestone will enhance our value proposition to merchants across online and face-to-face payments.”
A Growing Digital Payment Landscape in Kenya
Kenya’s digital payments sector has evolved rapidly over the past decade, with M-PESA leading the charge as a revolutionary mobile money platform. Safaricom’s move to integrate card payments is another step in Kenya’s digital transformation, offering customers more ways to transact and boosting economic activity, particularly for MSMEs.
According to data from the Central Bank of Kenya, the number of card payments has been steadily increasing. While M-PESA remains the dominant payment method for everyday transactions, card payments are rising, especially among businesses targeting international customers or offering services like e-commerce. By enabling merchants to accept payments from all card networks, Safaricom and Visa are facilitating smoother transactions, thus encouraging more businesses to adopt digital payment solutions.
Secure Transactions with Visa’s CyberSource Payment Gateway
Visa’s CyberSource Payment Gateway is a global platform that provides merchants with a secure and scalable payment processing solution. By using CyberSource, Safaricom merchants can now enjoy features like advanced fraud detection through Visa’s World-Class Decision Manager. This system uses machine learning and vast data analysis to monitor and mitigate fraudulent transactions, ensuring both merchants and customers experience secure and efficient payment processing.
Empowering MSMEs and Driving Economic Growth
One of the most significant aspects of this partnership is its focus on MSMEs. As the backbone of Kenya’s economy, MSMEs contribute around 40% of the country’s GDP and employ more than 80% of the population. However, many of these businesses have traditionally been limited to cash or mobile money payments due to the lack of infrastructure to support card transactions. Safaricom’s integration with Visa changes that dynamic, offering small businesses access to the tools they need to compete in a digital-first economy.
By empowering MSMEs with these expanded payment capabilities, Visa and Safaricom are not only helping businesses grow but also promoting financial inclusion and driving the overall growth of Kenya’s economy.
Looking Ahead: The Future of Safaricom and Visa Partnership
The award of the Payment Facilitator Certificate is not just a milestone in itself, but part of a long-term strategy by Safaricom and Visa to provide Kenyan businesses with world-class payment solutions. This partnership continues to evolve, bringing innovative services that meet the changing needs of consumers and businesses alike.
As digital payments continue to gain traction across Kenya, more partnerships and integrations like this are expected. Safaricom’s commitment to offering comprehensive payment solutions for both online and in-person transactions ensures that merchants are equipped for the future of commerce, and Visa’s global expertise in payments will remain a crucial part of this journey.
Conclusion
The awarding of the Payment Facilitator Certificate to Safaricom is a major step forward in transforming the payment landscape in Kenya. Through this partnership with Visa, Safaricom is set to further empower merchants, especially MSMEs, by offering secure, reliable, and flexible payment solutions. With the integration of Visa’s CyberSource Payment Gateway, Kenyan businesses will be better equipped to meet the evolving demands of consumers, both locally and globally. This collaboration is poised to strengthen Kenya’s digital economy and offer long-term benefits for businesses and customers alike.
Safaricom’s vision to provide more diverse and secure payment solutions continues to be realized, and with Visa by its side, the future of payments in Kenya looks increasingly bright.
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