Tap, Scan, Pay: Safaricom and Pesapal Redefine M‑Pesa Checkout in Kenya

What’s new: Dynamic Scan‑to‑Pay and Tap‑to‑Pay

The two headline features are Dynamic Scan‑to‑Pay and Tap‑to‑Pay, both running on Pesapal’s POS devices now deployed at tens of thousands of merchant locations.

• Dynamic Scan‑to‑Pay: Instead of scanning a static QR code and manually entering a Till number and amount, customers scan a QR code displayed on the Pesapal terminal. The merchant details and payment amount are automatically populated in the M‑Pesa flow, reducing errors and speeding up checkout.

• Tap‑to‑Pay: Customers with NFC‑enabled smartphones can tap their device on a compatible Pesapal POS. Transaction details appear on the phone for verification, and the customer authorizes payment with their M‑Pesa PIN or biometrics.

• Safaricom emphasizes that PIN or biometric confirmation is still required, so the experience is contactless but not “tap‑and‑go” in the sense of bypassing authentication.

How the partnership works

Safaricom is leveraging Pesapal’s existing merchant payment infrastructure rather than building its own POS network from scratch. Pesapal brings its card‑machine footprint and payment gateway capabilities, while Safaricom integrates its M‑Pesa payment experiences Scan‑to‑Pay, Tap‑to‑Pay and AI Pay onto those terminals.

This arrangement allows Safaricom to put M‑Pesa contactless and QR checkout on thousands of existing devices quickly, and gives merchants another digital payment option alongside card acceptance.

Scale and rollout timeline

Safaricom says its Scan‑to‑Pay service is already available at more than 60,000 merchant outlets nationwide, with a target of scaling to 500,000 outlets within the next 12 months as Pesapal expands its POS footprint. The new Dynamic Scan‑to‑Pay and Tap‑to‑Pay features are being rolled out to Pesapal merchants with compatible terminals, with no additional merchant fee announced for the new options.

Pesapal’s Scan‑to‑Pay implementation uses the Kenya Quick Response (KE‑QR) standard defined by the Central Bank of Kenya, aligning with national interoperability guidelines for QR payments.

Who can use Tap‑to‑Pay and what devices are needed

To use Tap‑to‑Pay, a customer needs:

• An active Safaricom line registered on M‑Pesa.

• An NFC‑enabled smartphone (most mid‑range and flagship Android phones, and iPhone 6 and newer).

• The My OneApp (Safaricom’s super‑app) installed and set up with M‑Pesa.

At the till, the cashier enters the amount on the Pesapal terminal. The customer then taps their phone, reviews the merchant name and amount on the phone screen, and confirms with PIN or biometrics. If Tap‑to‑Pay is unavailable or the phone lacks NFC, customers can still pay by scanning the QR code (Dynamic Scan‑to‑Pay) or using traditional M‑Pesa options such as STK Push, Buy Goods, or Paybill.

AI Pay: reading receipts to auto‑fill payment details

Alongside the in‑store checkout upgrades, Safaricom highlighted AI Pay, a feature in the My OneApp that uses optical character recognition and AI to read payment details from receipts.

• A customer can scan a printed or handwritten receipt.

• The app attempts to extract the relevant Till or Paybill number and the payment amount, auto‑filling them in the M‑Pesa flow.

• This reduces manual entry and the risk of typos, particularly for utility bills, school fees, or retail payments where customers receive paper or photo receipts.

AI Pay complements the in‑store Tap and Scan options by streamlining remote or post‑purchase payments where a physical POS is not involved.

Why this matters for merchants

For retailers, supermarkets, fuel stations, pharmacies, and other high‑traffic outlets, the new options promise:

• Faster checkout times: Less time spent keying in Till numbers and amounts, and fewer failed transactions due to entry errors.

• Reduced queues: Contactless tap and quick QR scans can ease congestion during peak hours.

• Broader digital acceptance: Merchants already on Pesapal can accept M‑Pesa via tap or dynamic QR without major new hardware investments.

Because the service rides on existing Pesapal terminals, merchants do not need to deploy a separate M‑Pesa‑only device to offer these options.

Consumer benefits and security considerations

For consumers, the main advantages are convenience and reduced friction:

• No need to remember or type long Till/Paybill numbers at the till.

• Lower risk of sending money to the wrong Till due to manual entry mistakes.

• A more card‑like experience for M‑Pesa users who already carry NFC phones.

On security, Safaricom has maintained M‑Pesa’s traditional safeguards:

• Every Tap‑to‑Pay transaction still requires PIN or biometric confirmation.

• Transaction details are shown on the phone before authorization, allowing customers to verify merchant and amount.

• The underlying payment rails remain M‑Pesa, with its existing fraud monitoring and customer protection mechanisms.

This approach balances speed with the caution Kenyan regulators and users expect from mobile money systems.

Context: M‑Pesa’s evolution from USSD to super‑app payments

The new checkout options are the latest step in M‑Pesa’s shift from USSD‑based menus to app‑driven, QR and contactless experiences. Historically, paying a merchant meant.

1. Dialing *544# or using the M‑Pesa menu.

2. Selecting “Lipa na M‑Pesa,” then Buy Goods or Paybill.

3. Entering Till/Paybill number, amount, and PIN.

Now, with My OneApp and Pesapal integration, many of those steps are automated or eliminated at supported outlets. This mirrors global trends where mobile wallets increasingly emulate card‑like tap and QR experiences while staying rooted in local payment standards like KE‑QR.

Regionally, Safaricom and partners have also tested tap‑to‑pay M‑Pesa in other markets, including a Visa‑enabled rollout in Tanzania, but the Kenyan deployment is tightly integrated with local QR standards and Pesapal’s merchant network.

What to watch next

Several developments are likely as the rollout matures:

• Merchant coverage: Whether Safaricom and Pesapal hit the 500,000‑outlet target for Scan‑to‑Pay within a year, and how many of those will support Tap‑to‑Pay.

• Device compatibility: Expansion of terminal models that support NFC tap, and clearer consumer guidance on which phones work best.

• AI Pay refinement: Improvements in receipt recognition, especially for handwritten notes, low‑quality photos, and non‑standard formats.

• Interoperability: Potential alignment with other banks and wallets using KE‑QR, so that a single QR can serve multiple payment methods beyond M‑Pesa.

For now, the immediate change for most Kenyans will be subtle but significant: at many shops, paying with M‑Pesa will feel more like tapping a card or scanning a code, and less like navigating a menu.

Bottom line

Safaricom’s partnership with Pesapal marks a practical upgrade to how Kenyans pay with M‑Pesa at physical stores. By combining dynamic QR, NFC tap, and AI‑assisted receipt scanning, the telco is pushing M‑Pesa closer to a modern, card‑like checkout experience while keeping its hallmark security and broad reach.