A notable portion of Kenyans utilizing instant account-to-account (A2A) transfers favor their bank apps for payments, contrary to the expectation that the mobile money option would be more popular.
The preference for banks is even more pronounced given that the majority of Pesalink’s users are multi-banked: 28% use two banks, 19% use three, and 10% use four or more.
The fact that 57% of A2A users are multibanked indicates a demand for improved interoperability and seamless digital experiences.
Gituku Kirika, CEO, Integrated Payment Services Limited (IPSL), said, “There is a massive opportunity to invest in interoperable and standardized cross-bank services running on the Pesalink rails.”
Pesalink, the company owned by the Kenya Bankers Association, is managed by IPSL. Based on findings from the company’s latest Usage & Attitudes (U&A) Survey, instant account-to-account payments remain the fastest-growing payment method in Kenya, experiencing a 35% year-on-year growth in 2024.
Read: Safaricom and Kenyan Banks Recommend PesaLink To Unify Payment Systems
However, despite the strong growth, Pesalink users still use mobile money slightly more than they use the banking apps. The preference is close, with 50.15% opting for mobile money and 41.54% choosing banking apps for regular transactions.
This narrowing gap is the ideal time for banks to invest in and expand their A2A payment capabilities. This is especially due to the decline of cash and cards with only 8% of users.
Kirika noted, “We know that companies relying on Kenyans carrying a physical wallet, or cash, are facing an uphill battle. It is interesting to see that mobile banking apps are so close in popularity to mobile money wallets among Pesalink users.”
The survey found that convenience and speed rank as the top factors influencing payment method choices. Financial institutions failing to offer instant settlement features and competitive pricing stand to lose market share.
Fees charged, security, and privacy were equally important, while rewards and loyalty programs ranked low.
