NAIROBI, Kenya – Safaricom and PayPal have joined forces to make it easier for users to move money between the local M-PESA mobile wallet and the global PayPal payment system.
The deal enables over 35 million M-PESA users and 2 million small businesses and micro-traders to send and receive funds across the two platforms, linking local mobile money to the world of international online payments.
“Our partnership with PayPal is a bold step forward in enabling seamless, worry-free, safe, secure, and inclusive digital payments,” said Esther Waititu, Chief Financial Services Officer at Safaricom.
“It’s part of our commitment to unlocking opportunities and transforming lives through the power of M-PESA.”
The service is already live in Kenya, with the telco hinting at plans to roll it out to other African countries where M-PESA is active.
For years, PayPal has been a key option for Kenyans working in the global gig economy, from writers and developers to online traders.
But limited integration with local financial services has made fund transfers clunky and expensive.
“Building seamless connections between the global economy and local financial ecosystems is crucial to expanding digital financial inclusion,” said Otto Williams, PayPal’s Regional Head for the Middle East and Africa.
The deal comes at a time when Kenya’s digital economy is growing, with more young people turning to remote jobs and digital commerce.
Safaricom and PayPal say this partnership could be a game-changer for this demographic by reducing friction in cross-border transactions.
With PayPal’s 400 million users across 200 countries and M-PESA moving over Sh 141.9 billion daily, this partner says the move reflects a shift towards onboarding fintech platforms, which are increasingly growing in Kenya.
Kenya currently boasts over 350 fintech companies relying on digital cross-border payments.
In 2023, Kenya’s fintech industry generated approximately Sh926 billion in revenue
The broader fintech ecosystem is projected to grow at a 10.7% CAGR from 2024 through 2032, reaching an estimated 2.5 trillion by 2032.
