Kenya’s mobile money dominance spurs global remittance partnerships

Kenya’s M-Pesa, the mobile money service operated by Safaricom, is deepening its influence beyond East Africa through a series of new partnerships aimed at lowering remittance costs and speeding up international money transfers. The latest deals, announced this week, involve collaborations with leading global fintech companies and regional payment networks in Europe, the Middle East, and Asia. They are designed to make it easier for Kenyans abroad to send money home directly to M-Pesa wallets, bypassing traditional remittance channels that can be slow and expensive.

M-Pesa has long been considered one of the world’s most successful mobile money systems, with over 60 million active users across Kenya, Tanzania, Mozambique, the Democratic Republic of Congo, and other markets. In Kenya alone, M-Pesa processes transactions equivalent to more than half of the country’s GDP each year. While it was originally designed for domestic payments and peer-to-peer transfers, the platform’s role in cross-border remittances has grown steadily as migration and diaspora networks have expanded.

The new partnerships include integrations with UK-based TransferGo, Singapore’s Thunes, and Middle Eastern operator Al Ansari Exchange. These alliances allow Kenyans living abroad to initiate transfers from bank accounts, debit cards, or mobile apps and have funds delivered in minutes to M-Pesa wallets. The companies say the arrangement will cut transfer fees by up to 40 percent compared to legacy wire services, while also eliminating the need for recipients to travel to a physical agent location to collect cash.

Remittances are a crucial part of Kenya’s economy, accounting for over $4 billion in inflows annually according to the country’s central bank. These funds help support household expenses, education, and small business activity, making efficiency in the remittance process a development priority. The government has encouraged private sector innovation in this space, citing the role of digital payments in improving financial inclusion and reducing reliance on cash-based transactions that can be harder to trace and regulate.

M-Pesa’s expansion into international money transfers also reflects a broader shift in the global payments landscape. As digital wallets and mobile money platforms become more interoperable, cross-border transactions are increasingly bypassing correspondent banking networks. This trend has been accelerated by API-driven payment infrastructure, which allows fintechs and mobile operators to integrate quickly without building bespoke settlement systems.

Despite the momentum, challenges remain. Currency conversion costs, regulatory compliance, and anti-money laundering controls add layers of complexity to cross-border services. In some countries, mobile money operators face restrictions on holding foreign currency balances, which can limit their ability to process certain transactions directly. M-Pesa and its partners say they are working with regulators to address these issues, with the goal of expanding available corridors in the months ahead.

If successful, Kenya’s model could serve as a blueprint for other emerging markets looking to leverage mobile money as a tool for more affordable, transparent, and accessible remittance flows. With millions of Kenyans living abroad and demand for instant, low-cost transfers continuing to rise, M-Pesa’s latest move could cement its position as not just a domestic payments leader, but a truly global financial services player.