Safaricom, Kenya’s leading telecommunications company and operator of M PESA, has launched a new tap-to-pay feature for physical storefronts through a strategic partnership with Kenyan payment provider Pesapal.
The collaboration integrates M-PESA contactless and dynamic QR code payments directly into Pesapal’s thousands of point-of-sale (POS) terminals. Instead of manually punching in a merchant’s till number, customers with near field communication (NFC)-enabled smartphones can simply tap their devices on a compatible terminal to settle a transaction.
How the M-PESA Contactless System Works
By merging mobile money with traditional card-processing hardware, the new checkout flow minimizes manual errors and speeds up processing times at retail counters.
- Tap-to-Pay for NFC Devices: Once the cashier keys in the total amount on the Pesapal terminal, a customer taps their NFC-enabled Android or iPhone against the machine. This action opens Safaricom’s My OneApp, automatically populating the merchant’s details and amount for quick PIN or biometric authorization.
- Dynamic QR Codes for Non-NFC Phones: Customers using devices without NFC capability can instantly scan a dynamic QR code displayed on the exact same terminal screen, which similarly pre-fills the transaction data.
Scaling Up Across Kenya’s Retail Footprint
The initial rollout covers 30,000 Pesapal terminals across Kenya, heavily concentrated in high-traffic commercial environments like restaurants, hotels, and select supermarkets.
This partnership allows Safaricom to access thousands of physical checkouts immediately without deploying an independent hardware network. Meanwhile, Pesapal strengthens its POS devices by letting merchants seamlessly accept both traditional card payments and mobile money through a single, unified unit. Importantly, customers incur no extra charges when using the service compared to standard M-PESA transactions.
Overcoming Past Barriers to Contactless Adoption
Safaricom previously attempted a contactless roll-out back in 2017 with “M-PESA 1Tap,” which relied on separate branded cards, wristbands, and stickers. That project was discontinued due to low consumer adoption.
The new approach removes major friction points by using everyday smartphones as the payment medium, capitalizing on familiar habits built around contactless card payments and digital QR codes. As mobile money infrastructure continues to evolve, this collaboration marks a major step toward mainstreaming fast, hardware-supported digital payments throughout East Africa.
