Safaricom’s M-Pesa is set to join the Pesalink network, which could revolutionise Kenya’s digital payments system.
In a proposal submitted to the Central Bank of Kenya (CBK) in conjunction with the Kenya Bankers Association (KBA), Safaricom wants to integrate M-Pesa, Kenya’s largest mobile money platform, with the country’s interbank payments Pesalink system, which is already connected to 39 banks nationwide.
The integration is expected to create a more integrated payment experience in Kenya by removing barriers between mobile wallets and traditional bank accounts. It could make money transfers between mobile wallets and bank accounts faster and more seamless for millions of Kenyans, closing the gap between mobile money and the banking sector.
Pesalink, currently operated by Integrated Payment Services Limited (IPSL), offers instant bank transfer services but does not include mobile money services like M-Pesa. With Safaricom joining the network, M-Pesa users will be able to transact with any bank without the need for a separate agreement between banks and mobile money providers.
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This is in line with the central bank’s broader aim to facilitate payments and promote financial inclusion through its new Payment Services Framework (FPS), which aims to facilitate foreign exchange transactions.
“Most businesses are already connected to the IPSL switch and Safaricom M-Pesa will soon join the switch,” Safaricom and KBA said in a statement.
The report highlights Kenya’s efforts to establish a more integrated payment system to support a range of financial products and services.
Safaricom has not yet responded to a request for comment. M-Pesa’s integration with Pesalink could also be a key part of CBK’s FPS plan, which will enable fast payments across a range of financial institutions, including banks, SACCOs (savings and loans and business associations) and microfinance institutions.
