M-PESA-Amazon Integration Imminent, But It Solves One Part of The Problem

By the use of now, most people have been apprised of the plan between American e-commerce huge Amazon and Kenya’s primary telco Safaricom to strike a partnership that may see customers make expenses by means of manner of M-PESA while purchasing products from the platform.

The announcement used to be as soon as made by means of manner of Safaricom’s CEO Peter Ndegwa throughout the pro liberate of the company’s 2021 FY results.

The advance is a component’s of Safaricom’s plan to boost its M-PESA earnings following source of revenue drops throughout the 2021 FY.

M-PESA has been an integral earner for the supplier through the years, and has always defied barriers to internet the company billions of shillings every other quarter and three hundred and sixty five days.

Particularly, the telco’s M-PESA earnings dropped by means of manner of 2.1 % YoY to KES 82.647 billion, a number one for the company. In spite of the drop, the mobile money product used to be as soon as the principle moneymaker for the corporate after it overtook voice services and products and merchandise. On the entire, M-PESA constitutes a third of Safaricom’s revenues.

About two years prior to now, Safaricom struck a deal with China’s Alibaba (AliExpress) that spotted purchaser pay for products by means of manner of M-PESA that is integrated on the ecommerce’s mobile app.

Earlier than the AliExpress deal, Safaricom partnered with America’s PayPal, a construction that allowed customers to move their cash from their PayPal to M-PESA wallets.

The partnerships, among many others, are proper right here in a bid to extend the usage of M-PESA.

It should also be well-known that this is not that Amazon and Safaricom are running together. Prior to now, Amazon provided web services and products and merchandise to the supplier. Safaricom signed a strategic agreement with Amazon Web Services, which allowed the operator to resell AWS services and products and merchandise.

The partnership will, unfortunately, treatment one drawback with purchasing groceries on Amazon, which is expenses. However, the overwhelming majority of Kenyans who use the eCommerce platform know their method spherical expenses quite than the use of M-PESA.

The downside has always been about delivery because of this of for the immediate, Kenyans are at the mercy of third-party importers whose services and products and merchandise are priced higher than what customers may well be ready to pay for.

 

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