South African online merchant solutions provider, PayGate, has developed technology enabling Kenyan mobile money users to buy products and services via e-commerce websites.

PayGate says the technology, called M-Pesa Online, is planned to boost e-commerce in the East African region.

“Hundreds of merchants in Kenya are now ‘Powered by PayGate’ for e-commerce acceptance of credit cards,” said Robin Philip, PayGate marketing director.

“M-Pesa is the most accepted and pervasive payment method in Kenya so it was a logical step for us to add it to our merchant payment options,” Phillip told ITWeb Africa.

According to PayGate, M-Pesa Online works similar to any other online purchase payment solution.

A customer can visit a merchant’s website and select M-Pesa as a payment option. PayGate will then display the M-Pesa payment instructions including the 'Business Number' (for PayGate) and an account or reference number used by the merchant to uniquely identify the customer.

This is followed by the customer making the payment by transferring the money using M-Pesa via their mobile phone. The customer will then receive a confirmation text message with a confirmation code.

The last step requires the customer to enter a confirmation code on the PayGate (M-Pesa) website.

Philip concluded by saying the firm is “currently working on providing M-Pesa Online in three other countries where M-Pesa is a powerful payment method, one of which is Tanzania.”

PayGate, though, only has users in Kenya testing the software thus far, Philip told ITWeb Africa.