A new cross-border payment platform focused on the Afro-Asian corridor is preparing to launch in Kenya, promising significant changes for local traders. Pyxis, a financial technology company, is finalizing a deal that will allow Kenyan traders to pay for Chinese goods through Alipay, the payment system affiliated with Alibaba. This advancement aims to simplify transactions by eliminating the need for dollar conversions, potentially boosting the use of the Chinese yuan in international trade.
The integration with Alipay will enable Kenyan traders to make payments of up to $70,000 (Sh9,037,000) directly through WeChat, Tencent’s dominant social media and payment platform. April Long, CEO of Pyxis, highlighted that this new system will streamline the process of paying for goods from China, which traditionally involves converting Kenyan shillings to US dollars before sending them for conversion to Chinese yuan.
This development represents a major boost for Kenyan traders, who will benefit from avoiding the often costly and slow process of traditional banking and money transfer systems. Pyxis’ platform is designed to facilitate person-to-person transactions between Kenya and China without the need for dollars, with future plans to extend this capability to business transactions.
The initiative is aligned with China’s broader strategy to increase the global use of the yuan, positioning it as a competitor to the US dollar. Dr. Min Ji from the People’s Bank of China noted that Beijing is keen on expanding the yuan’s role in trade settlements, reflecting a broader push to enhance its currency’s global influence.
In addition to the Alipay integration, Safaricom is exploring a link between M-Pesa and Alipay, which would allow M-Pesa users to transfer funds to beneficiaries in China. This development is anticipated to further ease cross-border transactions, though the service’s status remains unconfirmed.
Kenya continues to rely heavily on imports from China, including manufactured goods, electronics, and machinery. The new payment system aims to improve the efficiency of these transactions and support Kenya’s ongoing trade relationship with its largest trading partner.
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