Safaricom’s debut into the global digital economy comes at an opportune time when mobile credit companies and electronic payment firms are focusing on hundreds of small business as well as innovating new products and services that are fast, secure and convenient for their customers.
The partnership between Safaricom, global online payment system PayPal and TransferTo will open global market places to Kenyan businesses and individuals while boosting their reach and growth, placing them on global stage. Kenya’s mobile commerce transactions value hit Ksh1.1 trillion on December 31, 2017, growing by 53per cent compared to the previous quarter that ended in September 2017 according to the Communication Authority of Kenya.
The platform will allow local businesses sell goods to more than 20 million active PayPal users across the globe. Cross border shopping is on the rise globally where there’s tendency to buy internationally says a report by KPMG.
With more than 29.4 million internet users in the country and increased mobile penetration coupled with the country’s upsurge of mobile payments, online consumer spending has now become a second driver of the growing the number of shipping companies use for delivery of goods.
According to the Nielsen Consumer Confidence and Spending Intentions survey released in March 2018, 1 in every 4 Kenyans shops online. This inspired by the “on the go lifestyle” which creates the need for consumption experience, shopper experience and engagement experience driven by a two-way interaction and easy to use apps. Easy transfer of funds from M-PESA to PayPal will definitely be a growth booster for the e-commerce industry.
In the face of weak economic growth there has been a fervent call for university graduates to become entrepreneurs rather than seek employment. This has increased the number of graduates using their free time to pick extra work to boost their earnings, which is supported by affordable home internet solutions. PayPal online transfer system has bridged the gap in terms of payments once the jobs are done.
PayPal’s collaboration with MPESA will allow users in Kenya to receive and load their PayPal wallets from their mobile phones hence enabling them to shop in global ecommerce websites and PayPal merchants globally.
This will address the fear or lack of knowledge of payment options reasons oftenly given by consumers, owing to the fact that M-PESA will give consumers an element of trust with the successful penetration of 22.6 million Safaricom mobile money subscribers according to their recent financial reports.
The transaction between PayPal and M-PESA powered by TransferTo is convenient, safe and simple which involves a 2 step process of linking a PayPal account and M-PESA account.There will also be no transaction charges on withdrawals but Forex charges will apply to the transactions. Deposits to PayPal via MPESA Paybill will attract Paybill transaction costs.
Just like past innovations like MPESA ,Masoko and Mshwari the partnership is a welcome move that will propel digital economy while intensifying growth of the e-commerce industry.