Key Points
- Tando enables Bitcoin Lightning transfers to Kenyan phone numbers with M-Pesa settlement.
- Integration targets remittances, leveraging Kenya’s vast mobile money network.
A mobile payments app, Tando, now allows users to send Bitcoin through the Lightning Network directly to Kenyan phone numbers.
Recipients can access funds in Kenyan shillings via M-Pesa without needing a crypto wallet or completing KYC verification.
The service is designed for remittances, freelancer payments, and merchant transfers.
It connects to Kenya’s mobile money system, which processed KES 40.2 trillion (approximately $312 billion) in transactions over the past year and serves more than 32 million active users.
By relying on existing payment rails, the integration demonstrates how the Lightning Network can scale through established financial infrastructure.
Operators that secure consistent liquidity between Lightning and M-Pesa could influence transaction fees across East African remittance corridors.
How the Lightning-to-M-Pesa Settlement Works
A sender uses a Lightning-compatible wallet to transfer Bitcoin to a Kenyan phone number linked to M-Pesa.
Tando generates a Lightning invoice, receives the payment, converts it to Kenyan shillings at the prevailing rate, and deposits the funds into the recipient’s M-Pesa account via Safaricom’s API.
The recipient receives a standard mobile money credit and does not directly interact with cryptocurrency tools.
The company states that it does not hold user funds, instead operating as a bridge to facilitate value transfer rather than acting as a custodian.
Reports from early users indicate that, during the current rollout phase, no additional fees are charged beyond standard M-Pesa tariffs.
Some reviewers have noted that the app does not display the recipient’s name before confirmation and currently supports only Kenyan shillings.
Kenya’s Mobile Money Landscape and Market Dynamics
Kenya represents a key testing ground for Lightning integration, with around 73% of adults using M-Pesa.
Payment systems that settle directly into M-Pesa can potentially reach a broad share of the population without separate onboarding requirements.
Other services, including Machankura, have enabled feature-phone users to send and receive Bitcoin using USSD since 2022.
Meanwhile, Strike expanded into Africa in 2023 to focus on remittances, though its integration differs from Tando’s M-Pesa-centered model.
Maintaining sufficient Lightning liquidity, particularly during peak remittance periods, remains critical for reliable transaction processing.
Regulatory considerations also persist, as the Central Bank of Kenya has maintained a cautious stance toward cryptocurrency since 2015.
Tando has indicated plans to expand its model into other East African markets through further mobile money integrations.
