Safaricom’s M-Pesa is pushing deeper into regional payments as Kenya and Ethiopia expand cross-border digital finance

Safaricom on Friday, Oct. 11, 2024, expanded its M-PESA Global service to Ethiopia, enabling cross-border mobile money transfers between Kenya and Ethiopia. According to the company, the move aims to promote regional integration and simplify remittances by allowing customers in both countries to send money directly between M-PESA wallets without using traditional banking channels.

The service is an extension of M-PESA Kenya’s International Money Transfer (IMT) functionality and integrates with M-PESA Ethiopia, allowing seamless interoperability between the two countries’ mobile money platforms. Customers can initiate transfers by dialing *840# or through the Safaricom app, according to Safaricom’s official M-PESA Global webpage.

The expansion enables customers in Kenya and Ethiopia to send money directly between their M-PESA wallets, bypassing traditional banking channels, Safaricom said in a press release dated Oct. 11, 2024.

Safaricom described the move as part of broader regional integration efforts aimed at simplifying remittances and enhancing financial inclusion in East Africa. The company said the Kenya-to-Ethiopia corridor supports wallet-to-wallet and remittance-linked transfers, which reduce reliance on traditional banking systems and facilitate faster, more accessible cross-border payments. According to Safaricom, the partnership opens new opportunities for individuals and businesses by promoting digital payments within the region.

The expansion follows regulatory approval granted by the National Bank of Ethiopia in July 2023, which authorized remittance services in the country, according to Onafriq, Africa’s largest digital payments network. Onafriq confirmed it signed an International Money Transfer Agreement with Safaricom to help streamline remittance flows to Ethiopia. The company said the agreement supports the flow of cross-border payments and strengthens Ethiopia’s digital payments ecosystem by connecting it with Kenya’s established mobile money market.

Onafriq operates in 40 African countries and described the partnership as a means to facilitate remittances to Ethiopia, a key source of foreign exchange for the country. The Ethiopian service is accessible through Safaricom’s local platform at m-pesa.safaricom.et, confirming Safaricom’s growing footprint in the Ethiopian financial services sector.

Safaricom said M-PESA Global currently enables transactions to more than 190 countries worldwide, with the Kenya-Ethiopia corridor marking a significant step in expanding regional digital finance. The company noted that while some international transfers may incur fees or exchange-rate markups depending on the corridor and transfer amount, the service aims to provide a convenient alternative to conventional remittance channels.

Industry reports published by Techish Kenya on Oct. 14, 2024, highlighted that the expansion strengthens financial integration within East Africa by facilitating smoother digital payments between Kenya and Ethiopia. Safaricom officials emphasized that the initiative could enhance trade and personal remittances, which are vital components of economic activity between the two countries.

The launch of M-PESA Global in Ethiopia complements Safaricom’s broader strategy to expand its financial services across Africa. The company has positioned M-PESA as a key driver of digital financial inclusion, leveraging mobile technology to reach underserved populations. The Kenya-Ethiopia corridor reflects ongoing efforts to deepen economic ties and promote regional cooperation through digital finance infrastructure.

Records show that Safaricom first introduced the International Money Transfer function within Kenya’s M-PESA ecosystem before extending it to Ethiopia in 2024. The service is accessible to registered M-PESA customers, who can activate it by dialing a USSD code or using the Safaricom app interface. Wise’s 2024 guide to M-PESA Global confirms the availability of the service and notes the potential for transfer fees or exchange rate adjustments, depending on the transaction details.

The National Bank of Ethiopia’s authorization in July 2023 preceded the official launch by more than a year, indicating regulatory groundwork for cross-border mobile money services. Safaricom’s announcement on Oct. 11, 2024, was issued through its official Media Center, with subsequent coverage by regional media outlets confirming the operational status of the Kenya-Ethiopia remittance corridor.

This expansion aligns with regional efforts to enhance digital payment systems and financial integration in East Africa, leveraging mobile money platforms to reduce barriers to cross-border transactions. Safaricom’s continued rollout of M-PESA Global services reflects growing demand for accessible, technology-driven financial solutions across the continent.