Safaricom Kenya has extended the M-PESA Global service to neighboring country Ethiopia, enabling customers in Kenya to send money directly to Ethiopia. The move comes as a breakthrough on mobile money transfers, connecting the two countries for cross-border remittances and deeper financial integration between the economies of the two nations. The new service will enhance economic activities among locales, improve adoption of digital payments, and provide access to affordable financial services, both for individuals and businesses within the region. Ethiopia is particularly known to be a forex nightmare among businesses and the new service might open some gateway on how businesses operate there.
Enhancing Financial Inclusion at a Regional Level
The move indicates Safaricom's commitment to the development and growth of M-PESA not just in Kenya but also across borders, a factor that has seen its International Money Transfer service extended to Ethiopia. In essence, this means that mobile money transfers between Kenya and Ethiopia are made easy. On the other hand, the service is expected to increase the penetration of mobile payments within Ethiopia. At an infancy stage of adoption in the Ethiopian market, the service might turn out to be the magic touch that people need to switch to mobile money against conventional and stressful remittance channels.
According to Safaricom Kenya Chief Financial Services Officer Esther Waititu, "The service expansion resonates with the telcos commitment to deliver innovative financial solutions that address the evolving needs of its customers. We are empowering individuals and businesses across the region by making cross-border transfers more accessible, efficient, and cost-effective."
Impact on Individuals and Businesses
The new service for Ethiopian MPESA users will be useful to Ethiopians living in Kenya and Kenyans employed in Ethiopia. All they need is their M-PESA wallets to initiate cash transfers through the International Remittance platform of M-PESA. This service is bound to be useful, especially in the fast-growing Ethiopian diaspora community after the reforms by NBE in foreign exchange that paved the way for digital payments.
Safaricom Ethiopia's Chief Financial Services Officer Elsa Muzzolini said, "Thanks to this partnership, our M-PESA Ethiopia customers should henceforth be able to receive safe, affordable transfers from M-PESA Kenya. This further fosters the region's adoption of digital payments."
Broader Regional Benefits
The M-PESA expansion forms part of the bigger strategy aimed at improving financial integration in East Africa. Given the improved uptake and adoption of digital payments across the region, such a service will stimulate economic growth, cross-border trade, and lower remittance costs. This further comes at a time when Ethiopia opens up its telecommunications space to receive more mobile money opportunities, a space that Safaricom Ethiopia is actively eyeing.
Besides Ethiopia, the M-PESA clients are enabled to send and receive money in more than 190 countries around the globe, hence one of the most comprehensive mobile money services for both personal and corporate transactions.