Naivas Pay and what it represents

Continuing the discussion from Safaricom's Mpesa 1 Tap a summary of thoughts:

This happened.

And I feel like the launch did not give a proper context on what happened. As usual, the launch focused on business, and Naivas launching a payment network, but our interest was tech. So this is where I discuss the tech that was launched by Naivas, and what it means for the merchant payments space.

Naivas Pay is just a name, the product is done by Interswitch, and they can do that to any other vendor and they can call it whatever name they wish, or decide to standardize it the way they did with the ATM network in the past. What Interswitch solution does is address one major gap we’ve had. Payment solutions for merchants have largely been garden walls that weren’t exclusive. Lipa na Mpesa is Safaricom’s way of telling Kenyans to put their money in Mpesa, Mvisa, debit cards, and Masterpass is players telling you to keep your money in the bank.

Meanwhile, we want to have our cash and eat it.

Enter Interswitch new PDQ machine (for the record, this is something that’s been implemented by Mobitill, a Kenyan startup in a recent past). Both are inclusive, they accept all payment methods, and report to the company sales management software as one. Think about ease in reconciliation. M-visa is a USSD and QR code driven solution by Visa that seeks to have people pay straight from their bank to the bank of merchant. Masterpass works the same way. Mpesa 1Tap fetches payments from Mpesa to merchant till, which naturally will be in the merchant bank account. Then there is cash

Each of these three options (cash, lipa na mpesa and cards) are clawing earth to their side (think what a chicken does), with different hardware required. All these can be done by one channel in the case of Interswitch and Mobitill, Thanks to APIs, mobile money (Mpesa, Telkom) are included in these solutions.

Remember dealing with waiting time at supermarket queues? That isn’t going to be solved by Mpesa 1Tap, but another player. Safaricom, Equitel, Telkom and banks don’t lose, just that they will end up letting someone own the platform. And everyone is happy, well depending on how you look at it.

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