Vodacom Tanzania has announced a significant upgrade to its mobile money services with the launch of M-Pesa Global Payment. This innovative solution enables M-Pesa customers in Tanzania to conduct cross-border transactions with merchants located around the world, marking a pivotal moment for digital trade and financial inclusion across Africa and beyond. The initiative is bolstered by strategic partnerships with global payment giants including Visa, Alipay (facilitated by Thunes), TerraPay, and regional mobile money provider MTN Uganda.

The M-Pesa Global Payment platform offers a diverse range of functionalities designed to simplify international commerce. Customers can now utilize a tokenised M-Pesa Visa card to make contactless payments at any Visa-enabled merchant globally. For those looking to engage with the vast Chinese market, transactions with Alipay merchants are made possible through the Thunes network. Additionally, users can facilitate purchases in Dubai via the TerraPay network, while seamless payments to merchants in Uganda can be made directly into MTN MoMo wallets. All these services are conveniently accessible through the familiar M-Pesa USSD menu or the M-Pesa Super App.

This launch comes at a time of remarkable growth for mobile money in Tanzania, where subscriptions have nearly doubled between 2020 and 2024, indicating a strong national shift towards cashless transactions. Epimack Mbeteni, Director of M-Pesa at Vodacom Tanzania, highlighted that these new partnerships empower individuals and businesses to engage in international transactions with the same ease and security as local payments, circumventing the usual costs and complexities associated with traditional banking methods. He emphasized that these new corridors will open up fresh trade routes, reduce the cost of doing business, and grant merchants and consumers enhanced access to the global digital economy.

The M-Pesa Global Payment is particularly transformative for small and medium-sized enterprises (SMEs) in Tanzania, which have often faced limitations in cross-border trading due to a lack of reliable payment mechanisms. Now, a Tanzanian retailer can effortlessly source goods from markets like Dubai or China and settle payments directly from their mobile wallet, fostering frictionless trade that could redefine regional economic dynamics.

Key collaborations underpin the breadth and security of this service. The partnership with Visa introduces Africa's first-of-its-kind 'Tap & Pay' solution, enabling secure contactless mobile payments. Victor Makere, Visa’s Tanzania country manager, explained that tokenisation significantly enhances security and convenience by allowing M-Pesa customers to pay globally without exposing their sensitive card details. Thunes' global payment rails are instrumental in facilitating payments through Alipay in China, directly connecting Tanzanian businesses to one of the world's largest e-commerce ecosystems. TerraPay's involvement extends M-Pesa's reach to Dubai, a crucial trade hub, bridging African users with Middle Eastern markets. For regional trade, MTN Uganda's participation ensures seamless cross-border transactions for East African merchants and consumers, streamlining operations for SMEs active in multiple markets.

Ultimately, M-Pesa Global Payment is poised to accelerate cross-border commerce, enhance access to global markets for Tanzanian businesses, and expand financial inclusion beyond domestic boundaries. This strategic move solidifies Vodacom’s ambition to evolve M-Pesa from a purely domestic mobile money solution into a comprehensive global payment platform, empowering consumers and merchants alike to fully participate in international trade and the digital economy.