It’s not an overstatement to say that Vodafone’s M-Pesa has revolutionized countless lives since it’s inception in 2007. It’s allowed people who did not have access to bank accounts to access digital wallets. But it’s not just individuals who’ve benefited from this; myriad businesses have benefited too. Businesses can receive and make payments without the physical of cash. This has been immensely to communities that did have access to cashless payment systems previously.
M-Pesa has come a long way from the days when all you could do with it was transfer cash from one mobile user to another. M-Pesa now includes services such M-Shwari (a mobile banking platform), Lipa na M-Pesa (a service that allows one to pay for goods and services from different merchants). In fact, M-Pesa’s services are so pervasive that they can now be incorporated into online systems and mobile applications-this is what we’ll focus on today.
There are several reasons to adopt a mobile payment solution such as M-Pesa. These include:
1. Increase your sales.
Mobile payments system inspires your prospects to convert and turns them into real time customers. It eliminates the purchase diffidence that your customers feel while following the traditional method of buying.Mobile Payment System opens a new gate for you to grab more audiences and ensure your company’s growth.
2. Build a world-class brand on a small budget.
Mobile payment allows you to understand your customers’ perspective and be a part of it.n this modern era, mobile payment system has become one of the easiest methods of payment. Mobile payment allows swift transactions and delivers receipts via text message or emails. The mobile payment system has simplified the purchase experience.
Safaricom’s M-Pesa platform offers versatile intergration capabilities that allow businesses and developers can utilize to create excellent M-Pesa journeys across their different industries. These features are now available via secure Application Programming Interfaces (APIs) that allow for third party applications to easily plug into M-PESA.
M-PESA has been very successful mainly because of its simplicity of use and device agnostic nature – works the same way for the latest iPhone as the good old Nokia phone that has been passed over several user generations. The API rides on the same concept, providing open interfaces over standard protocols through web services. Unlike the old system (G1) where a lot of workarounds had been done to automate payment experiences, developers can now hook directly to the core M-PESA and get creative with the systems they run.
Below are some use cases:
1. Automated Payment Receipt Processing:
Imagine the different scenarios that require customers to pay and have this processed instantly!
With the new system, the notifications are taken a notch higher by incorporating an optional payment validation step for Paybill. This allows the payment recipient (merchants) to confirm whether to accept the incoming payment or not. While this may not sound very beneficial at the face of it, think of how many customers send payments to the right Paybill number but enter the wrong account. Money moves from the customer’s M-PESA account but their service payment will not be processed and they have to follow up. This has been creating a big problem with the merchants, leading to massive reversal requests. This can now be handled through the validation API which allows the recipient to validate any of the payment parameters, including, account, amount and even sender and only accept the payment if processing can be guaranteed.
2. Automated Payment Disbursements:
Many systems that process receipts will also require outward payments processing. This could range from employees’ salary disbursements to paying other merchants that accept M-PESA payments. This feature was only available via web portal for business to customers (B2C) with limitations on capacity that made it unsuitable for large disbursements. With the new platform, developers can have this done via API, which empowers them and cuts off the manual process of generating payments file, putting it in the right format then uploading it via the web portal, after which it has to be approved by a different user. With the B2C API, this is now seamless.
3. Automated Payments Reversal:
Even with an elaborate system, there is always a unique case that calls for a reversal. Imagine a situation where a customer has made a payment for services that the merchant is no longer able to render. The best way to handle this would be to have a reversal process that the merchant can adapt based on their internal processes. G2 supports secure payment reversal automation for such cases. The implementation will fully depend on the service journey and controls required at the recipient’s business.
It is clear that intergrating M-Pesa to any business’ systems is very beneficial to the business allowing the business to recieve payments seamlessly via M-Pesa while allowing the customers to make payments in a very convenient way.
We at Quadrant have the capacity and expertise of intergrating M-Pesa and other mobile payment solutions to both new and existing systems. Should you need to intergrate M-Pesa or any other mobile payment platform into your system, you can reach out to us through email@example.com .