Mastercard Integrates AI-Powered WhatsApp Payments in Kenya, Challenging Mobile Money Dominance

Mastercard is partnering with Flowcart to embed card payments directly within WhatsApp conversations, launching first in Kenya before expanding across East Africa. This "chat-to-pay" system allows consumers to discover products, place orders, and complete payments without leaving the WhatsApp platform, leveraging Mastercard Gateway and its Merchant Cloud portfolio for secure transactions.

Flowcart, described as an "AI-powered commerce orchestration platform," utilizes AI to generate ready-to-buy carts based on customer inquiries, manage customer journeys from ads to purchase, and segment users for targeted campaigns. This automation addresses a critical pain point in conversational commerce by translating natural language product requests into structured orders, making chat a more effective sales channel.

The initiative contrasts sharply with Meta's own strategy, which has expanded AI tools for businesses on Facebook and Instagram but notably excluded WhatsApp Business in sub-Saharan Africa, despite 93% of Meta AI prompts in the region originating from WhatsApp. Mastercard's move is a direct response to consumer behavior, meeting them where they are already conducting a significant portion of their online shopping.

This development is particularly significant for Kenya, where mobile money, primarily M-Pesa, has long dominated payments. By extending card acceptance to social sellers who typically lack websites or POS systems, Mastercard introduces an alternative payment rail into a market hungry for simple, seamless payment solutions, as highlighted by their 2026 SME Confidence Index. The success of this new system will depend on factors like cost and merchant adoption.