NAIROBI - Safaricom, Kenya's leading telecommunications company, has entered into a partnership with global payments technology company Mastercard to enhance payment acceptance and cross-border remittance services in Kenya. This collaboration aims to benefit over 636,000 merchants using M-PESA, Safaricom’s prominent mobile money service.
The partnership between Safaricom and Mastercard is expected to leverage M-PESA's extensive merchant network and Mastercard's international payment infrastructure to provide more seamless, secure, and scalable payment solutions to Kenyan merchants. This will enable them to serve customers across global markets and is anticipated to boost the growth of Kenya’s payment acceptance market, which has been experiencing a compounded annual growth rate of 12.7% from 2020 to 2024.
Amnah Ajmal, Executive Vice President, Market Development, EEMEA at Mastercard, expressed the company's commitment to building an inclusive digital economy that benefits everyone. She highlighted that the initiative would enable merchants to contribute to the Kenyan economy's growth.
Esther Waititu, Chief Financial Services Officer at Safaricom Plc, stated that the collaboration aligns with Safaricom's mission to deliver innovative, customer-centric products. By integrating Mastercard’s omnichannel acceptance solutions with M-PESA’s merchant space, the partnership is set to scale digital payments across Kenya and enhance cross-border money transfers.
The first initiatives of this partnership are expected to be rolled out in the coming months. This move is part of Safaricom’s journey toward securing its acquiring license and providing merchants with advanced digital payment solutions.
Mastercard (NYSE: MA) is a global technology company in the payments industry, connecting and powering an inclusive, digital economy with secure data and networks. Safaricom, listed on the Nairobi Securities Exchange, is the leading telecommunication company in East Africa and runs M-PESA, the world's first mobile money transfer system.
The information in this article is based on a press release statement from Mastercard.
In other recent news, Mastercard Incorporated (NYSE:MA) has declared a quarterly cash dividend of 66 cents per share, a significant announcement for shareholders. This is alongside the company's recent strategic decision to acquire Recorded Future, a global leader in threat intelligence, for $2.65 billion. With Recorded Future's revenue exceeding $300 million, this acquisition is expected to contribute to Mastercard's revenue growth and diversification of services. Analyst firms Baird, BMO Capital Markets, and TD Cowen have expressed positive outlooks on Mastercard, while Compass Point has given Mastercard a Neutral rating.
In addition to these developments, Mastercard has priced new note issuances. These include a $750 million note due in 2028 at 4.10%, a $1.15 billion note due in 2032 at 4.35%, and a $1.10 billion note due in 2035 at 4.55%. According to Baird, these issuances will likely have a negligible or neutral effect on the company's earnings per share. These are the recent developments in Mastercard's strategic and financial landscape.
InvestingPro Insights
As Mastercard (NYSE: MA) continues to expand its global presence through strategic alliances, such as the recent partnership with Safaricom, it's important for investors to keep an eye on the company's financial health and market position. Mastercard's market capitalization stands at a robust $460.96 billion, reflecting its significant footprint in the financial services industry. The company's commitment to innovation and growth is further evidenced by its Price/Earnings (P/E) Ratio, which is currently at 37.95, suggesting that investors have high expectations for the company's future earnings potential.
InvestingPro Tips highlight Mastercard's strong track record, including its ability to maintain dividend payments for 19 consecutive years and raising its dividend for 13 consecutive years. These factors underscore the company's financial stability and its commitment to providing value to shareholders. Additionally, Mastercard's revenue growth over the last twelve months, at 11.87%, indicates a solid trajectory in expanding its business operations. With analysts predicting profitability for the year and a high return over the last decade, Mastercard stands as a prominent player in the financial services industry.
For investors seeking a deeper analysis of Mastercard's performance and future prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/MA. These insights provide a comprehensive look at the company's financial metrics, industry comparisons, and expert forecasts that can help inform investment decisions.
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