Kenya's Central Bank gives mobile money interoperability thumbs up

20 April 2018

Money Transfer

The Central Bank of Kenya (CBK) has welcomed the implementation of interoperability of mobile phone financial services in the country beginning Tuesday this week.

Mobile money interoperability allows customers to transfer funds across networks in real time, at lower cost and in a secure environment.

In January this year Safaricom's M-Pesa and Airtel Money undertook a pilot of mobile money interoperability in preparation for a nationwide launch of the cross-network service, initially planned for last month.

At the time the ICT Ministry said Telkom Kenya would be expected to take part in the tests as soon as it launches its mobile money service T-Kash which happened in early March.

Joe Mucheru, ICT Cabinet Secretary in Kenya's Government said making it easier to send money between different networks will drive down the costs for mobile money service users.

"We expect that as a result of the mobile money interoperability, other than the access and efficiency, there is actually then going to be more competition which should maybe lower the price of services and that will be better for everybody."

The Central Bank has identified key factors that it says need to be considered before endorsing mobile money interoperability, including cost.

Read the full article on ITWeb here.