Safaricom taps Pesapal’s 30,000 POS terminals to take M-PESA contactless

Safaricom, Kenya's leading telecommunications firm and M-PESA operator, is collaborating with Pesapal, a local payments provider, to enable tap-to-pay functionality at physical stores. Customers using NFC-enabled Android or iPhone devices can now tap their phones on compatible Pesapal POS terminals to pay merchants via M-PESA, eliminating the need to manually enter the Till Number.

Customers without NFC can alternatively scan a QR code displayed on the terminal. The partnership allows Safaricom to deploy M-PESA payments on thousands of existing POS terminals without establishing its own network. The rollout begins with 30,000 Pesapal terminals, primarily found in restaurants, hotels, and chosen supermarkets, as stated by Pesapal's founder, Agosta Liko.

Safaricom aims to increase the number of scan-to-pay outlets to 500,000 within the next year. The service operates at no additional cost for customers, mirroring the experience of paying through an M-PESA Till Number. After testing for six months, Pesapal is now rolling out the feature to all merchants with compatible POS machines.

The system retains the merchant's M-PESA Till Number while providing the POS terminal and handling the M-PESA transaction. Customers tap their phones on the terminal instead of manually entering the Till Number. For those without NFC, a QR code can be scanned instead. Safaricom's My OneApp app facilitates payments by allowing customers to scan printed or handwritten receipts, automatically identifying the merchant's Till or PayBill number and payment amount.

The move positions Pesapal as a key player in Kenya's payments market, as POS terminals traditionally associated with card payments now process M-PESA transactions. While Safaricom and Pesapal haven't disclosed the exact number of M-PESA transactions through QR codes, they have highlighted the ongoing discussions with other POS providers for integration.