Mobile cash transactions hit Sh1.3trn in 6 months to June

Money transacted through mobile phones hit Sh1.3 trillion in the first half of 2015 compared to Sh1.1trn at the same period last year.

This was helped by increased adoption of the service, growing integration with other financial and non-financial services and entry of many firms in the market.

In the six months of this year, about Sh7.3 billion has been transacted daily, up from a daily average of Sh6.2 billion in a similar period in 2014.

Analysts say the growth in mobile money transactions has been aided by improved product offerings across the various mobile payment platforms.

Mobile money agents increased to 131,761 by the end of June 2015 from 120,781 by the end of June last year.

Similarly, the number of customers stood at 26.5 million from 25.9 million in the period under review partly indicating increased growth in transactions per user on average.

The convenience in use of mobile money and increased adoption by individuals and companies has led to the decline in the popularity of electronic payment cards.

In the first six months of 2015, money transacted through electronic payment cards declined by 4.2 per cent to Sh654.7 billion from Sh628.6 billion transacted in a similar period in 2014.

While payment through credit cards experienced growth between March and June this year, transactions through debit cards was mixed.