Overview:

Vodacom’s M-Pesa can now pay merchants in Uganda directly into MTN MoMo wallets. This major partnership simplifies cross-border trade for East African SMEs.

DAR ES SALAAM, Tanzania — Vodacom Tanzania has launched a major expansion of its M-Pesa mobile money service, introducing global payment features that include a new direct interoperability link with MTN Mobile Money (MoMo) in Uganda.

The partnership with MTN Uganda is expected to streamline regional trade and financial transactions for thousands of micro, small and medium enterprises, or MSMEs, operating across the East African countries.

Vodacom’s M-Pesa Director Epimack Mbeteni emphasized the importance of the new regional connection.

“Our partnerships with VISA, Alipay, Network Internal and MTN Uganda demonstrate our commitment to building a strong and interconnected digital payments ecosystem,” Mbeteni said. “Together, we are enabling people and businesses to transact across borders with the same ease as they transact locally, securely, instantly, and affordably.”

The collaboration allows M-Pesa customers in Tanzania to pay merchants in Uganda directly into their MTN MoMo wallets. This capability is powered by Thunes.

Richard Yego, MTN Mobile Money Uganda Director, welcomed the development, noting its impact on cross-border business.

“This partnership marks a major stride toward seamless regional trade,” Yego said. “Together with Vodacom, we are unlocking greater financial access for thousands of cross-border traders in Uganda and Tanzania, especially SMEs who are the backbone of our economies.”

The announcement also detailed other new features aimed at enhancing global digital financial inclusion for M-Pesa users:

  • Global Tap and Pay: In partnership with VISA, customers can now use a tokenized M-Pesa Visa card to make global Tap and Pay transactions via their phones.
  • Payments to China: Through the Thunes Direct Global Network, customers can pay merchants in China within the Alipay ecosystem.
  • Dubai Transactions: A partnership with TerraPay allows M-Pesa users to transact with select merchants in Dubai.

Mbeteni described the combined solutions as positioning M-Pesa as one of the most advanced digital payment systems in Africa, eliminating traditional banking hurdles for customers who frequently transact regionally and globally.