Safaricom Ltd., the largest mobile operator in Kenya, is working with U.S.-based payments provider PayPal Inc. on a platform to enable consumers to pay school fees directly to institutions’ bank accounts using their mobile phones, the companies announced earlier this month.
The mobile platform, dubbed “Schoolpay,” is free for schools for the first class term. Thereafter, they pay Safaricom 10,000 Kenyan shillings (US$123 and 92 euros) per school term to use the service, according to a Safaricom spokesperson. Consumers may use the service for free.
The mobile platform offers schools the ability to track payments for specific activities such as field trips and lunches.
Payments made by customers using the service first are sent to one of PayPal’s trust accounts. The holders of those accounts then forward the funds to the respective school accounts, he adds.
Three banks in Kenya operate PayPal’s trust accounts–Kenya Commercial Bank Ltd., Cooperative Bank of Kenya Ltd. and CFC Stanbic Financial Services Ltd.
Safaricom’s goal is to enroll at least 30,000 schools in Kenya over the next two years; 90 have signed since the January first week launch for the next school term.
Schoolpay accepts fees paid using Visa, MasterCard and American Express credit cards from patrons living overseas, the spokesperson adds.
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