KaiOS, Mastercard partner to enable digital payments for SMEs

KaiOS Technologies, the creator of a mobile operating system for smart feature phones, and global payments firm Mastercard have announced a partnership to integrate a range of digital payments solutions for small businesses in Africa and other emerging regions.

The companies said in a joint statement that KaiOS's affordable smart feature phones will leverage Mastercard's payment technology and global network to drive acceptance and support the growth of the digital economy.

"Small and medium-sized businesses (SMEs) – especially in developing markets – still struggle to adopt digital payments, from the expenses linked to traditional payment acceptance terminals to technical implementation challenges," the companies said.

"This, in turn, makes it harder for these businesses to meaningfully participate in the digital economy and limits inclusive growth," they added.

The partnership will begin in Cote d'Ivoire and Nigeria, enabling small business owners to accept digital payments using KaiOS devices and Mastercard's QR Pay by Link, with tap-and-go contactless payments technology coming in the near future.

"Acceptance fuels a successful digital economy, so it’s critical that we meet people where they are today and move them forward together," said Jorn Lambert, chief product officer at Mastercard.

"Whether it's a micro-merchant in Cote d'Ivoire to an enterprise in Indonesia, our goal is to make it as easy for merchants to accept digital payments as it is for consumers to make them," Lambert added.

Sebastien Codeville, CEO of KaiOS Technologies, said that KaiOS's mission is to connect underserved communities with the digital world.

"By bringing Mastercard's secure payment technology to affordable Internet phones running KaiOS, we're unlocking new opportunities for small businesses and entrepreneurs, allowing them to participate in modern commerce more fully. This innovation brings down the barriers and enables an affordable consumer device to become a powerful business tool," added Codeville.

In July 2024, Codeville told Connecting Africa that the company had started offering affordable merchant payment terminals – which look like feature phones – to help underserved merchants accept digital payments solutions.

The Mastercard partnership is an expansion of this strategy following KaiOS's pilot programs in the informal transport sector in Nigeria and with merchants in Côte d'Ivoire.

An example of a KaiOS-powered merchant payment terminal. (Source: Connecting Africa)

KaiOS works with mobile network operators and mobile phone manufacturers in emerging regions, with plans to expand to include acquiring banks, payment facilitators, fintechs and more.

African partnerships

As part of this extended collaboration, Mastercard and KaiOS will focus on African markets first, collaborating with partners like Touch and Pay Technologies (TAP) and Wizzit to extend access to in-market merchants.

TAP CEO Olamide Afolabi said the company is always looking for innovative solutions that enhance the accessibility and convenience of financial services for underserved populations.

"By integrating KaiOS into our platform, we're enabling millions of users with feature phones to access seamless digital payment solutions and financial services that were previously out of reach. This partnership is a vital step in furthering our mission to drive financial inclusion and empower communities through technology," Afolabi said.

Dirk Bruynse, chief operating officer of Wizzit, believes that joining forces with KaiOS and Mastercard will help expand secure payment acceptance solutions across Africa and beyond.

"This partnership will enable us to scale our switching capabilities and deliver innovative payment solutions that cater to the evolving needs of businesses of all sizes. We are confident that this collaboration will set new benchmarks for efficiency and drive greater financial inclusion," Bruynse added.

In April 2024, Mastercard also partnered with pan-African payments company Onafriq to bring secure payments to consumers and SMEs across the continent.

In February 2024, the global payments firm invested $200 million into MTN Group's fintech business.

*Top image source: freepik.

— Paula Gilbert, Editor, Connecting Africa