The new M-PESA platform, offers versatile integration capabilities that our development partners can take advantage of , to create excellent M-PESA journeys across the different industries they serve. This was a key factor in moving to the new platform.
Advantage of M-PESA API
- Multistage API – The transaction is not completed without 3rd party verification
- Reduces the number of reversals
- Real time transactions – not offline
- Secure – https, data encryption (RCA algorithm)
Payment Use cases
- Automated Payment Receipt Processing:
- Automated Payment Disbursements:
Imagine the different scenarios that require customers to pay and have this processed instantly! Before G2, this was handled purely through Instant Payment Notification (IPN) which has served quite well. As the name indicates, IPN is only for notification processing. The use cases for payment processing are as many as your imagination can get – from utility bills to m/ecommerce, and the future is likely to get even more interesting.
With the new system, the notifications are taken a notch higher by incorporating an optional payment validation step for Pay bill. This allows the payment recipient (merchants) to confirm whether to accept the incoming payment or not. While this may not sound very beneficial at the face of it, think of how many customers send payments to the right Pay bill number but enter the wrong account. Money moves from the customer's M-PESA account but their service payment will not be processed and they have to follow up. This has been creating a big problem with the merchants, leading to massive reversal requests. This can now be handled through the validation API which allows the recipient to validate any of the payment parameters, including, account, amount and even sender and only accept the payment if processing can be guaranteed.
Many systems that process receipts will also require outward payments processing. This could range from employees' salary disbursements to paying pension funds to retired officers.. This feature was only available via web portal for business to customers (B2C) with limitations on capacity that made it unsuitable for large disbursements. With the new platform, developers can have this done via API, which empowers them and cuts off the manual process of generating payments file, putting it in the right format then uploading it via the web portal, after which it has to be approved by a different user. With the B2C API, this is now seamless.
Looking at the above use cases, one cannot fail to see the vast opportunity presented by the open interfaces. The future we once thought very distant of machine to machine payments is here and now. The only limitation to the adaption is the developer's imagination.
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