Jan 15, 2013

MasterCard PayPass and Equity Bank to compete with M-PESA in merchant payments

MasterCard has entered Kenya’s payment market with PayPass, a contactless payment feature that enables cardholders  to simply tap their card on a point-of-sale terminal reader to pay. Mastercard is partnering with Equity Bank to issue 5 million MasterCard-branded debit and prepaid cards, over the next 18 months.

The MasterCard cards with chip-enabled technology will be issued first into the Kenyan market and then extended into Uganda, Tanzania, Rwanda, and South Sudan. 

Kenya is first African country where MasterCard is launching its Paypass Technology. All Equity bank supplied PoS in Kenya will be converted to NFC enabled PoS. Smaller merchants will be issued with mobile phones fitted with MasterCard's PayPass Technology which enables them to process small card transactions at retail level.

This comes at a time when Safaricom has intensified its efforts to promote M-PESA payments among merchants in Kenya.