M-Pesa transaction rates going down?

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Safaricom’s major shareholder Vodafone is set to lower the fee charges on mobile money transfer service following the M-Pesa IT platform move from Germany to Kenya.

Hosting the M-Pesa platform locally is expected to cut payments made to the third parties and increase the service’s efficiency to handle around 600 transactions per second from 250 transactions per second which is definitely good news to the telcos subscribers following a hike in the transfer rates early last year and delays experienced from time to time.

“The software for the platform for Kenya is under development and will be available for testing during the second half of this year.  The hardware for the platform will be installed in the Safaricom data centres during 2014,” said Michael Joseph, a director at Safaricom and vodafone’s Mobile Money.

The new rates will be rolled out after negotiations between Safaricom and Vodafone. “The current charges are partly driven by payments made by Vodafone to the people who manage the M-Pesa platform in Germany,” explained Mr. Joseph

M-Pesa has over the months turned out “Knight in shining armour” for Kenyans since it has created zero distance in money delivery. Safaricom has also created a lee way to competitor telcos for mobile money also contributing to economic development.

Launched in 2007, M-Pesa has grown to a mobile banking service by offering loans and playing medium for salary payments, school fees deposits as well as small payments for bills and matatu fares.

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