Kenya’s mobile operator Safaricom has been given the approval by the Central Bank of Kenya (CBK) to begin its cashless fare payment service on M-Pesa
An executive from Safaricom said that the CBK approved Safaricom as one of the cashless service providers and the National Transport and Safety Authority (NTSA) is likely to issue a notice shortly.
Safaricom has partnered with some innovators, who have helped the company upgrade its system to be compliant with the receipt requirements, added the executive.
The Kenyan mobile telecom operator launched Lipa na M-Pesa – a service that allows goods and services to be paid for online via the companies’ M-Pesa platform. Earlier, Safaricom’s decision to start the cashless fare payment was stalled, as regulations require mobile payments system to issue commuters physical receipts. This is a service Safaricom could not offer before partnering with third parties.
According to Ventures Africa, Safaricom is hoping to procure a larger share in the cashless fare market, which is expected to end the irregular exchange of fares and allow the Kenya Revenue Authority to collect taxes from the industry.
