Kenya’s mobile payment giant M-PESA, with a user base of over 60 million and connections to 900,000 businesses, continues to play a key role in Africa’s digital payment ecosystem. A new partnership with digital solutions startup tappi aims to support the growth of small and medium-sized enterprises (MSMEs) across Kenya.
MSMEs contribute up to 40% of Africa’s GDP but face a staggering failure rate of 80% within their first five years. To address this challenge, tappi is offering a suite of services aimed at improving business operations and customer engagement, all for a subsidized cost of KSh 1,350 (approximately $11). This package includes a free webpage, SMS/WhatsApp review integration, and bulk SMS marketing credits, which are designed to help merchants reach more customers and run their businesses more efficiently.
One of the standout features of the collaboration is M-PESA Ratiba, an automated payment system that allows business owners to manage recurring payments. This solution helps prevent service disruptions by ensuring that critical payments are handled smoothly and on time.
The initiative is targeting 300,000 users of the M-PESA for Business App, with the partnership already launched among over 250 users from sectors such as food, fashion, health, and beauty. Tappi’s tools will complement the existing features of the M-PESA for Business App, which include viewing collections, generating statements, and processing payments directly from an M-PESA till number.
Kenfield Griffith, CEO and Co-Founder of tappi, emphasized the significance of the partnership. “With over 35 million subscribers, M-PESA has been the backbone for countless local entrepreneurs. Our tools will help these businesses not only manage transactions but also expand their customer base online.”
Tappi’s partnership with Safaricom marks another milestone in its mission to bridge the digital gap for MSMEs in Africa, which represent a $20 billion market. Earlier this year, tappi signed a Memorandum of Understanding with the Kenya National Chamber of Commerce and Industry (KNCCI) to support 30,000 MSMEs with enhanced digital services.
The startup’s reach continues to expand across the continent. In March 2024, tappi entered Côte d’Ivoire through a partnership with MTN, which also covers Nigeria. This followed a successful $1.5 million pre-seed fundraising round in December 2023.
Since its launch in 2019, tappi has reported a 90% customer retention rate and a payback period of just 1.5 months. It has facilitated $3.4 million in consumer transactions and engaged with over 180,000 consumers, underscoring its commitment to supporting digital inclusion for Africa’s MSMEs.
This collaboration between tappi and M-PESA represents a significant step forward in providing Kenyan MSMEs with the tools they need to thrive in an increasingly digital economy.
