E-COMMERCE

Jointpesa launches escrow platform in Kenya

The Fintech is keen to protect online buyers from losing money to fraudsters.

In Summary

• The FinTech is offering real time escrow services to e-commerce market users who use digital payments such as mobile payments or electronic payments.

• The Communications Authority data shows the Kenyan economy is estimated to have lost Sh29.5 billion to cybercriminals in 2018.

A pin payment card.
A pin payment card.
Image: COURTESY

Kenya Fintech startup-JointPesa in partnership with Finserve Africa has launched an e-commerce transaction platform dabbed “JointPesa”, which will see both online customers and sellers protected from fraudsters.

This is in the wake of rising criminal cases on online platforms where unsuspecting online buyers continue to lose money to cons.

The FinTech is seeking to offer real-time escrow services to e-commerce market users who use digital payments such as mobile payments or electronic payments as a mode of payment.

 

Being in escrow is a contractual arrangement in which a third party receives and disburses money or property for the primary transacting parties, most generally, used with plentiful terms that conduct the rightful actions that follow.

The Communications Authority reported that the Kenyan economy is estimated to have lost Sh29.5 billion to cybercriminals in 2018, which was a 39.5 per cent increase from Sh 21.2 billion in 2017.

“Seller will no longer lose potential buyers who cannot agree into paying for goods before seeing them, by allowing buyers to pay to JointPesa, the buyer will be able to buy without the fear of losing their money,” said Valentine Kilonzo, JoinntPesa founder.

She said cyber fraud prevention remains at the forefront of the conversation in the midst of rapid e-commerce adoption.

The platform intends to address online transactions crimes which are posing threat to growth and development of e-commerce in Kenya.

Up to 425.3 million mobile commerce transactions valued at Sh1.6 trillion are transacted in a quarter in the local e-commerce market, official data shows.

JointPesa seeks to convert at least 10 per cent worth of the online transaction to be transacted via its platform in the first quarter of this year.

 
 

This comes as Google identifies 13 million active internet users in Kenya alone with 47.6 million active mobile money accounts, which accounted for a transaction value of $3.6 billion in 2018.

“Smartphone user can download JointPesa app in their phones and use it in every transaction across the world,” said Muchiri, JointPesa APP developer.