Banks entice customers with free money transfer platform

Business Daily Kenya:  Kenyans can now transfer up to Sh1 million through their mobile phones between banks for free after Kenya Bankers As...

Business Daily Kenya: 

Kenya Bankers Association chief executive Habil Olaka during a media briefing in Nairobi yesterday. Photo/HELLEN MUTURI

Kenyans can now transfer up to Sh1 million through their mobile phones between banks for free after Kenya Bankers Association (KBA) launched its own money transfer service, PesaLink.

On the onset, the service is available to customers of 26 banks which have received Central Bank of Kenya (CBK) approval to use the service.

Speaking ashortly after the launch in Nairobi Friday, KBA Chief Executive Officer Habil Olaka said the free money transfer service will be available to users for two months before the banks start charging a fee.

“The service will be free for the first two months in order to encourage users to get on board. Even when introductory period is over, it will still be the cheapest way to transfer money in the country,” said Olaka.

Banks will have different charges for the service but charges will not exceed Sh200 to transfer Sh1 million, explained Olaka.  The service will be operated by Integrated Payment Services Limited (IPSL), a payment solutions company owned 100 percent by KBA.

KBA launched the service after a four-month pilot phase in which Sh2.5 billion was transferred in the first three months.  PesaLink aims to speed up bank-to-bank money transfer transactions of between Sh10 and Sh999,999 across five platforms - mobile (USSD and Apps), internet banking, ATM, branch front office and agency banking.

“With mobile penetration in Kenya standing at 90 per cent as at December 2016, the prospects of financial penetration are on the rise. Opportunities abound and PesaLink is a step towards the country’s ambition to be a cash lite economy especially with our offering of a real-time interbank transaction framework,” said Jenifer Theuri, IPSL CEO.

The post Banks entice customers with free money transfer platform appeared first on Mediamax Network Limited.

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