PesaLink users hit 3.5 million in three months

What you need to know:

PesaLink is expected to bite a chunk of the mobile money transfer business dominated by telcos.
The platform allows customers to send money from one bank account to another in a different bank real-time, on bank retail payment channels including the mobile, ATM, Internet banking, agency network, bank branches and soon at point-of-sale (PoS).

More than 3.5 million bank customers have been signed up on PesaLink, Kenya Bankers Association (KBA) has said.

The peer-to-peer platform is expected to bite a chunk of the mobile money transfer business dominated by telcos.

“Through PesaLink, KBA is literary writing the playbook that will define the shift of payment ecosystem in Kenya and in the region,” said KBA chief executive Habil Olaka, during the fourth Banker Africa - East Africa Awards 2017 gala dinner in Nairobi.

Pesalink, a digital payment platform was launched the bankers’ lobby in February, through its financial technology (FinTech) firm called Integrated Payment Services Limited (IPSL).

Mr Olaka said PesaLink was developed as a complementary tool to existing mobile money transfer and retail wallets systems.

“As a complementary tool, it is not out there to compete with any other existing mobile money wallet or transfer product,” said the KBA boss.

PesaLink allows customers to send money from one bank account to another in a different bank real-time, on bank retail payment channels including the mobile, ATM, Internet banking, agency network, bank branches and soon at point-of-sale (PoS).

Some 25 banks are using the platform.

Mr Olaka said to survive turbulent times it was important for banks to embrace innovative banking models such as agency, mobile and Internet banking delivery channels.

Banks have started feeling the effect of rate capping making it necessary for them to address cost factors.