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JointPesa, FinServe Africa collaborate to bolster e-commerce safety in Kenya

By , ITWeb
Kenya , 11 Feb 2020

JointPesa, FinServe Africa collaborate to bolster e-commerce safety in Kenya

Kenyan FinTech firm JointPesa, in partnership with local finance solutions provider and virtual network operator FinServe Africa, has launched an e-commerce platform designed to facilitate secure interaction between buyers and sellers.

In the case of online shopping, a customer who holds a JointPesa account can select a product to purchase online, then deposit money to their JointPesa account, after which JointPesa notifies the seller that the money is available online and the product can be delivered to the purchaser.

Similarly, a customer can walk into a shop and verify with management that they can transact using the JointPesa platform. Once both parties agree on the terms of the purchase, the full transaction is completed via the platform

According to the Communications Authority in Kenya, the country's economy lost 29.5 billion shillings (about US$29.5-million) to cybercrime in 2018, up by 39.5% compared to 2017.

JointPesa founder Valentine Kilonzo said that cyber fraud prevention remains at the forefront of the conversation in the midst of rapid e-commerce adoption.

"The seller will no longer lose potential buyers who cannot agree into paying for goods before seeing them, by allowing buyers to pay to JointPesa, buyer will be able to buy more and in confidence without the fear of losing their money," said Kilonzo.

Using the platform is not free of charge and would-be-users should anticipate transaction and withdrawal fees.

The buyer has to pay 2.5% of the transaction amount plus Ksh.55 (US$ 0.55) for transactions from zero to 499, 999 (about US$5,000) and 2.5% plus Ksh.100 (US$1) for transaction between KSh. 500,000 (US$5,000) to 1,000,000 (US$10,000).

This is a withdrawal fee from the JointPesa account to the user's destination account, whether a bank facility or M-Pesa.

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