Safaricom’s M-Pesa is poised to transform Kenya’s digital payments landscape as it prepares to integrate with the Pesalink network. In a joint proposal with the Kenya Bankers Association (KBA) submitted to the Central Bank of Kenya (CBK), Safaricom aims to connect Kenya’s leading mobile money platform to the national interbank payment system. This move promises to create a more unified and seamless payments ecosystem for millions of Kenyans.
Currently, Pesalink facilitates instant bank-to-bank transfers but does not incorporate mobile money services like M-Pesa. The proposed integration will bridge this gap, enabling smooth transfers between mobile wallets and bank accounts without requiring individual agreements between providers. This milestone could be a game-changer for financial inclusivity and accessibility across the country.
By joining the Pesalink network, M-Pesa users will benefit from reduced transaction costs compared to the current rates. For instance, sending KES 10,000 via M-Pesa costs approximately KES 100, whereas Pesalink charges range between KES 30 and KES 50. The cost efficiency introduced by this integration is expected to make digital payments more affordable and appealing to both individuals and businesses.
This development aligns with the CBK’s broader vision for a Fast Payment System (FPS), designed to foster interoperability between financial institutions, including banks, SACCOs, and microfinance institutions. The FPS initiative aims to facilitate instant, low-cost transactions, ensuring a seamless and interconnected financial ecosystem.
Ali Hussein Kassim, chairman of the Association of FinTechs in Kenya, highlights the significance of this initiative, stating that integrating M-Pesa with Pesalink will dismantle the existing silos between mobile money and banking systems. This will empower users to transact more efficiently across platforms, boosting economic activity and innovation.
For small businesses, this integration could simplify payment acceptance across various platforms, eliminating the need for multiple wallets. By streamlining operations, Kenya’s payment infrastructure is set to support growth, innovation, and financial inclusion, propelling the country further into the digital economy.
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