Cross-border payment platform Alipay, is set to launch its system in Kenya, allowing traders to pay for Chinese goods through the Alipay system which is affiliated with Jack Ma's Chinese e-commerce giant Alibaba. With over 1 billion users, Alipay allows individuals to make online and in-store purchases, transfer money, pay bills, and even book services like taxis and hotels.
The recent move will potentially free traders from purchasing dollars to settle transactions with their Chinese counterparts.
This move represents a significant shift in Kenya-China trade dynamics. Kenyan traders currently must convert shillings to dollars before making payments to Chinese counterparts, incurring additional costs and delays. The integration of Alipay could streamline this process, offering a more cost-effective solution
Hence, Alipay's entry into the country's payments ecosystem would be a major boost for traders importing goods from China, as there is no official way to send money in Chinese yuan (CNY) to an individual in the Asian region.
Also, telecom giant Safaricom PLC is also exploring a potential link between its M-PESA Africa platform and Alipay, which could further facilitate transactions between the two countries.
