Standard Chartered pioneers real time M-PESA merchant payment system


Today Standard Chartered signed an agreement with Safaricom which will allow business customers and M-PESA agents deposit and access their float in real time. Standard Chartered is the first bank to pioneer this real time merchant payment system.

Lamin Manjang (CEO Standard Chartered Kenya) & Bob Collymore (Safaricom CEO)
Lamin Manjang (CEO Standard Chartered Kenya) & Bob Collymore (Safaricom CEO). Photo credit: Safaricom Ltd

Now merchants will be able to convert their e-value into cash in real time. This process previously took a minimum of 6 hours and would sometimes delay. Safaricom has integrated the M-PESA platform with the Standard Chartered payment systems which now eliminates the use of manual RTGS. The transactions have no cost for the transfer. The Standard Chartered clients will push e-value from merchant paybill or till to Standard Chartered paybill 329329. On receipt of the e-value, Standard Chartered will automatically credit the client’s account.

Lamin Manjang, CEO, Standard Chartered says that the partnership will be an advantage to merchants as it leverages on the power of convergence between telecommunications and banking. This will bring convenience and enhanced security to client’s business transactions.

According to Lamin Manjang, the real time merchant solution will enhance the value preposition for its clients and will also provide a competitive advantage. The new system allows for increased limit in how much one can settle. Before it was 5 million shillings and now it is 50 million shillings. Merchants can transfer as little as Ksh. 50, down from the current Ksh. 35,000. Funds transfer will be allowed only from a merchant headquarters or through a Paybill to Paybill Number belonging to their bank. This new system will work 24 hours a day.

“We endeavour to improve the lifestyles of our clients and their banking experience, by collaborating with like-minded partners, and leveraging on our collective digital capabilities,” said Lamin Manjang. The bank is keen on develop supply chain solutions by investing in better technology, and service delivery by improving customer experience.

Bob Collymore, CEO of Safaricom said that they are looking at collective advantage by creating collaborative advantage. He said that it is possible for companies to be seen as selfish but it was important for companies to move from the ego system to ecosystem, where it is all about the customers not all about the company. M-PESA has been a lubricant for the economy since its launch 8 years ago. Safaricom is looking at the challenges that merchants are facing and asking “how to we make customers more productive?” This partnership with Standard Chartered is part of the solution and cements their collaborative relationship.

“M-PESA has emerged as the biggest and perhaps the most important positive disruption to the financial services space. This has been made possible by strategic partnerships.” said Bob Collymore.

The two corporates have partnered before to create a widely used digital platform that allows customers to make loan payments using M-PESA via mobile banking, real time loan top tops, make bulk payments and easy collection for SMEs using mobile money.

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