The Kenya Bankers Association (KBA), through its financial technologies firm IPSL, has launched PesaLink, a bank-to-bank money transfer platform, after a four-month pilot phase.
To celebrate the launch, IPSL service subscribers’ will enjoy free access and tariff free services on the PesaLink platform for the next two months to further encourage the product uptake.
Speaking at the launch event, Habil Olaka, the KBA CEO, said that in the short period PesaLink has been in operation, the service has enjoyed a steady growth in customer deposits, signing up 26 banks onto the platform and processing more than Kshs 2.5 billion worth of transactions.
“Since we set up IPSL to address the challenge of integrating retail payments in the country, we have witnessed the need to offer solution-based products to the market,” said Olaka.
“PesaLink, which offers affordable money transfer rates and allows for instant inter-bank transactions, is one of the many breakthroughs the financial sector has offered to the market. We have more to offer as we continue innovating for the future.”
According to KBA and its members, PesaLink was borne out of the need to provide a secure, fast and efficient money transfer system by tapping into the latest technological advances.
The platform aims to speed up bank-to-bank money transfer transactions of between Kshs10 and Kshs 999,999 across five platforms – mobile (USSD and apps), internet banking, ATM, branch front office, agency banking and POS branches.
“With mobile penetration in Kenya standing at 90% as at December 2016, the prospects of financial penetration are on the rise. Opportunities abound. 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.
Founded under the Central Bank of Kenya’s National Payment System (NPS) guidelines, IPSL provides a platform aimed at harnessing the potential of digital payment solutions for the local market. The platform has been developed to provide interoperability and related technology solutions for local commercial banks. IPSL will also inform policy direction and manage the risks associated with payment systems in the market, while providing technical and related guidance to KBA member banks.
“We have much more planned for the future. We foresee the platform enabling money transfers of multiple currencies, we shall venture into online services, we shall reach out to the unbanked through changing from cash to code, we shall facilitate B2P transactions and even venture into partnerships with the government and other financial institutions apart from banks,” she said.