Safaricom Starts Using M-Pesa Shops For Masoko Deliveries

Sharon Holi Masoko
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Safaricom’s E-Commerce platform, Masoko has at last tapped into its robust M-Pesa Agents Network to strengthen their footing in Kenya’s e-commerce industry and compete favourably with existing platforms.

A report by GSMA, the leading trade body that represents the interests of mobile network operators worldwide, noted that Masoko is now capable of delivering products to 45 out of 47 counties in Kenya using more than 160,000 M-Pesa agents as multiple delivery partners and pick-up stations

“As in other developing countries, Safaricom’s main e-commerce challenge has been logistics. The MNO (mobile money operator) is addressing this by using its sizeable agent network as delivery and collection points, as well as multiple delivery partners,” the report mentions.

Since its inception, Masoko has on-boarded over 120 active vendors and increased stock keeping units to over 30,000. The growth has been motivated by its vision to use the platform to bring the market to small businesses across Kenya giving them access to opportunities presented by the rapid growth of e-commerce across the globe.

Leveraging on M-Pesa, a key product of Safaricom that has gained trust, populace and good reputation in the Kenyan market, the report adds that Masoko will utilize it to offer flexible payment modes to all its customers.

“As a mobile money provider, Safaricom brings several unique strengths to the e-commerce domain. For example, while Safaricom offers several payment methods other than M-Pesa (such as VISA and MasterCard), Masoko does not offer the payment option of cash on delivery. As a payment service provider itself, Safaricom can guarantee payment for order the moment it is placed — a core added value,” says the report.

Listed as the largest telecommunications provider in Kenya and one of the most profitable companies in the East and Central African region, Safaricom boasts of about 25.7 million subscriber base, controlling approximately 64.2 per cent of the Kenyan market.

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