Mobile money transfers edge out rival operators

Scarcity of cash in these rural outlets has forced many users, especially those moving more than Sh3,000 to turn to the more liquid operators such as PostaPay and MoneyGram to avoid delays in delivery.

Regional integration
Zain says it is counting on “regional integration of its Zap platform around the African continent and a seamless connectivity with the individuals’ banking services,” to expand its reach.

The limitation of amounts transferable through mobile phones to a maximum of Sh35,000 per transaction owing to security and money laundering concerns is also seen as a curb on the mobile phone operators’ revenue horizon. The capping is being used by other operators to reap bigger commissions that have enabled them to stay in business.

Ms Pulver of FSD says Kenyans generally move small amounts of money making the mobile phone-based channels just good for them.

“Majority of those sending sums above Sh35,000 are likely to be already banked,” says Ms Pulver.After initially rattling commercial banks, who saw the mobile phone money transfer service as an encroachment on their turf, the traditional money transfer firms appear to be currently taking most heat from the new service.

“We envision Zap to be the future ‘currency’ where consumers will be talking about Zap money whenever they think of any transaction they would like to do,” says Rene Meza, the Zain Kenya managing director.