CFC signs M-pesa payment deal

It will now be possible for businesses to pay a large number of people through Safaricom’s M-pesa service by simply submitting their names and mobile phone numbers to a local commercial bank.

CFC Stanbic Bank has teamed up with Safaricom to offer this new service dubbed “bulk payments” that will enable CFC Stanbic clients to transfer funds from their accounts to specified beneficiaries’ mobile phones.

The bank’s corporate account holders will only be required to submit names of payees, their phone numbers and the amount to be transferred, after which CFC Stanbic will effect the transfers on their behalf for a fee.

Recipients of the cash transfers will only be required to be Safaricom subscribers, but not necessarily CFC Stanbic Bank account holders.

CfC Stanbic Bank’s regional head for transactional banking, Robert Masinde, said the bank will charge their corporate clients about Sh80 per transfer to registered M-pesa users but transfer charges to non-registered users “will be negotiable.”

“Our corporate clients will actually save on costs they would have needed to write cheques or transport cash to beneficiaries,” said Mr Masinde.

The new service will likely come as a relief for firms that have been figuring out ways of transmitting payments to their remotely stationed staff or suppliers.

Coca- Cola Kenya already uses Zain’s Zap money transfer service to pay distributors while many other companies and SMEs pay their bills using these mobile-phone transfer services.

“By working with Safaricom we can achieve mutual benefits which address the needs of our shared customers”, said Mr Masinde.

Meanwhile, CFC Stanbic Bank on Thursday launched a three-month advertising campaign that will involve change of the company’s slogan to the new motto, “Moving Forward.” The change is part of South Africa’s Standard Bank rebranding campaign.

CFC Stanbic managing director, Mr Mike Du Toit, said the promotion is about “reconnecting” with the customers by introducing new products as well as creating awareness on already existing ones.

The new promotion drive officially kicked off mid last month at the banking group’s Johannesburg headquarters.

“This is a global campaign taking place in all 33 emerging market countries in which Standard Bank operates,” said Mr Du Toit.

Mr Du Toit ,however, said the bank would stick to its operating niche’ of serving corporate, high and middle income earners.

“Mass market banking requires certain infrastructure and distribution capabilities that we do not have currently,” said Mr Du Toit.