Monday, July 11, 2016
SAFARICOM PILOTS MPESA CARD WITH STAFF
The card is to be used at merchants for purchase of goods and services and will have its own Point of Sale System, the machines used to swipe popular payments cards.
This is likely to launch an intense battle for the local payment market which has recently seen fast rising uptake of Visa card services particularly at petrol stations and bars and eateries.
However, the move by Safaricom to introduce this card, which it has previously sought to bring to the market, is seen by some as being more of a reaction to plans by local banks to introduce a interbank switch allowing cash transfers within the banking system without going through MPESA.
However, that threat was significantly hobbled when the two largest banks in Kenya, KCB and Equity Groups, instituted demands before signing onto the switch including the fact that the switch would not allow merchant banking.
This means it cannot be used for payment of goods and services like MPESA.