What's Happening?
Safaricom, Kenya's largest telecommunications company, has completed a major upgrade of its M-PESA platform, transitioning to a cloud-native architecture. This upgrade, known as Fintech 2.0, allows the platform to process up to 6,000 transactions per second, with potential scalability to double this capacity. The migration, which involved a brief service interruption, aims to improve customer experience and facilitate easier integration with banks and fintech companies. The new system supports over 21 billion transactions annually and is expected to enhance the platform's reliability and speed.
Why It's Important?
The successful migration of M-PESA to a cloud-native architecture is a significant development in the digital payments sector. It positions Safaricom to better compete with rivals like Airtel Money and other digital-first players. The enhanced transaction capacity and integration capabilities could lead to new partnerships and innovations in financial services across Africa. This move aligns with Safaricom's strategic vision to evolve into a collaborative platform, fostering growth and adaptability in a rapidly changing market. The upgrade is crucial for maintaining M-PESA's market leadership and supporting its extensive user base.
