Kenyan banks are set to launch their own mobile money transfer service which will ultimately reduce the dominance on Safaricom’s mobile money transfer service. Currently, M-pesa serves as a channel through which Bank customers use to send mobile money to other users. Ideally, one withdraws money from their bank accounts into their M-pesa, and then send the money via the mobile money platform to another person’s M-pesa account.
According to NairobiTech, the project is a brainchild of the Kenya Bankers Association and is spearheaded by an IT implementation team as well as external consultants. Once completed, the system will allow bank customers to transfer money from an account in one bank to an account in a different bank, at a much cheaper rate than the current market offering. KBA chief executive Habil Olaka, says the system once in place will cut the tedious process. The project is slated to launch in the market in November of this year.
Currently, Banks allow one to transfer money from their bank account and directly to the M-pesa account of the recipient. The new mobile interconnection system will further allow for the opening up of the mobile money market. Currently, Safaricom’s M-pesa has 20.1 million mobile money users with 13 million active subscribers and ahead of other mobile money providers that include Airtel Money with 3 Million subscribers, MobiKash with 1.5 Million subscribers, Tangaza Money with 504,000 customers. Latest entrant Equity Bank, through its MNVO Finserve Africa Limited has 394,606 subscribers while Orange Money 190,129 customers.
Source: Nairobi Tech