Integrated Payment Services Limited (IPSL) has sort to address the challenge of integrating retail payments in the country by rolling out a bank-to-bank money transfer platform, PesaLink, after a four-month pilot phase.
According to the financial industry stakeholders in attendance of the launch, the platform will offer affordable money transfer rates and will allow for instant inter-bank transactions as one of the financial breakthroughs the financial sector has offered to the market.
Speaking at the launch event, KBA Chief Executive officer Mr. Habil Olaka, said, in the short period PesaLink has been in operation, the service has enjoyed a steady growth in customer deposits, signed 26 banks onto the platform and has processed more than Kshs2.5 billion worth of transactions.
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.
PesaLink aims to speed up bank-to-bank money transfer transactions of between Kshs10 and Kshs999,999 across five platforms – mobile (USSD & 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. “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.
The platform has also been tailored to enable money transfers of multiple currencies. Also, PesaLink will venture into online services as an effort to reach out to the un-banked through changing from cash to code.
The platform shall facilitate B2P transactions and even venture into partnerships with the government and other financial institutions apart from banks.
KBA pledged to continue supporting the national government’s efforts to foster financial inclusion. This, they say, is anchored on their recently launched brand ethos and ambition statement, ‘One industry. Transforming Kenya’ said Jenifer Theuri, IPSL CEO.