Commerce

Safaricom launches M-PESA Ratiba, allowing users to set standing orders for recurring payments directly from their mobile wallets. (Image source: Adobe Stock)

Safaricom has launched M-PESA Ratiba, a groundbreaking feature within its mobile money platform, M-PESA

This new capability allows users to establish standing orders directly from their M-PESA wallets, enabling automatic and seamless payments for recurring transactions and bills.

The feature enables users to schedule transfers from their wallets on a daily, weekly, monthly, or annual basis. These payments can be sent to individuals or used for recurring expenses like bills or subscriptions. Key advantages include a hassle-free setup process and the absence of penalties for failed or cancelled transfers due to insufficient funds.

Safaricom remains committed to enhancing lives by delivering tailored digital financial services and experiences. M-PESA Ratiba is designed to provide customers with worry-free, digital payment solutions for their regular transactions and bills. According to Peter Ndegwa, CEO of Safaricom, “This innovation, the first of its kind to bring standing orders to the convenience of mobile devices, plays a key role in enhancing financial inclusion among the underbanked population while advancing the country’s progress towards a cash-lite economy.”

M-PESA Ratiba is expected to significantly impact subscription services, unlocking opportunities in sectors such as media, entertainment, technology, healthcare, education, and e-commerce. It also promises to enhance customer experiences in the financial services space. With M-PESA Ratiba, users can effortlessly manage regular payments, including rent, school fees, insurance, newspaper subscriptions, utility bills, and support for loved ones.

Kazang Pay launches in Zambia, allowing merchants to accept card payments on existing terminals, boosting financial inclusion and business growth. (Image source: Kazang)

Kazang, the prepaid value-added services (VAS) and card acquiring business under JSE-listed Lesaka Technologies, has introduced its Kazang Pay card acceptance solution for merchants in Zambia

This new offering allows merchants to easily accept card payments on the same Kazang terminals they use for selling prepaid products and services.

With Kazang Pay, merchants in Zambia can accept both VISA debit and credit cards, as well as mobile wallet payments, on their existing terminals. Settlements are made to the merchant’s Kazang wallet on the same day. Customers simply need to tap or insert their card and enter their PIN using the secure scramble PIN pad.

Kazang operates around 12,000 VAS terminals across Zambia, and the company aims to enable most of them for card payments over the next six months. Merchants benefit from low transaction fees and can avoid monthly terminal rental fees if they meet a modest transaction threshold. Accepting card payments also opens opportunities for business growth.

As Zambia’s largest VAS point-of-sale terminal provider, Kazang offers mobile money payments, cash in and out services for banks and mobile money, bill payments, airtime, Zesco, and other prepaid services—all on a single platform. The addition of card acceptance further enhances the platform’s convenience for both merchants and consumers.

Kazang Pay’s launch in Zambia follows its earlier rollout in South Africa, where approximately 60,000 small and micro merchants use the solution for card payments. Zambia currently has around 3.8 million debit, credit, and ATM cards in circulation, and about 41,000 point of sale (POS) terminals. POS transaction values have surged to K 111.4 billion  (approx US$5.2bn) in 2022, up from less than K 20 billion (approx US$935mn) in 2018, according to the Bank of Zambia.

Leon de Wit, managing director at Kazang Zambia, said, “Zambia has made enormous strides in terms of financial inclusion, with card usage and penetration growing at a rapid pace. With Kazang Pay, merchants can now easily accept card payments on the same all-in-one terminal they already use for vending of VAS products.

“Card transactions help merchants to grow basket sizes and potentially attract more customers, and at the same time, reduce the risks and costs of handling cash. Moving towards digitalised payments will also enable merchants to track sales, manage cash flow, and create a footprint that could make it easier for them to access loans.”

Ashley Naidoo, director of Kazang Pay in South Africa, added, “Our Zambian merchants have eagerly embraced our card acquiring service as a valuable part of our one-stop solution. Following the launch of Kazang Pay in Zambia, we have seen higher VAS sales across our merchant base and much-improved merchant retention, and with our card acquiring solution, we now appeal to a broader merchant base.”

Partnership aims to enhance digital payments across the Middle East and Africa, benefiting merchants and consumers alike. (Image source: Mastercard)

Mastercard and Amazon Payment Services have entered into a multi-year commercial partnership aimed at digitising payment acceptance across the Middle East and Africa, encompassing countries such as Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, South Africa, and the UAE

Under this collaboration, Amazon Payment Services will implement Mastercard Gateway, a unified payment processing solution, which will be accessible in 40 markets within the region. This integration is set to enhance merchants' ability to provide swift, seamless, and secure transactions, along with a variety of convenient payment options for their customers.

With the rapid rise in digital payments, this partnership is poised to benefit thousands of merchants using Amazon Payment Services, including those operating Amazon online stores catering to consumers in the UAE and Egypt. Furthermore, it will pave the way for new collaborations with telecommunications companies and governments to improve their checkout solutions, thereby increasing transaction speed and security for customers.

According to the Mastercard Payment Industry Insights Index, 95% of consumers in the Middle East and Africa are open to using emerging payment methods, such as wearables, biometrics, digital wallets, QR codes, and contactless payments. Additionally, 61% of consumers would steer clear of businesses that do not accept electronic payments. Banks in the region that have transitioned to digital channels have experienced a rise in digital transactions, increasing from 70% to 90% over roughly two years.

“We are proud to partner with Amazon Payment Services to scale payment acceptance and accelerate digitisation of payments with innovation solutions,” stated Amnah Ajmal, executive vice-president, market development, EEMEA, Mastercard.

The two companies have also established an innovation agreement to create Secure Card on File, Click to Pay, and token authentication services, providing merchants with multi-rail checkout options and offering customers a quicker checkout experience.

Peter George, managing director, Amazon Payment Services, Middle East & North Africa, expressed, “We are delighted to strengthen our collaboration with Mastercard to deliver on our common goal of shaping the future of online payments in the region. Implementing Mastercard Gateway will empower us to expand our reach as a PSP and reduce the burden of integration, since the advanced technology solution is connected to all major acquirers around the world.”

Mastercard Gateway is a reliable solution that facilitates a single connection for customers to accept payments globally and expand into new markets effortlessly while safeguarding them against risks and fraud. Featuring frictionless digital checkout options, it eliminates the need for customers to manually enter card details and passwords when shopping online. As one of the largest gateways in the region, utilised by numerous financial sector players, it enables partners to accept a diverse range of digital transactions, including all leading card brands and non-card payment methods.

Amazon Payment Services continues to bolster online payments in the MENA region, supporting over 4,000 merchants and businesses across various countries, including the United Arab Emirates, Saudi Arabia, Egypt, Jordan, Lebanon, Qatar, Kuwait, Oman, and Bahrain.