Safaricom’s MPesa, Telkom money, and Airtel money have launched a mobile money interoperability.
The three service providers signed a contract to bring down the cost of money transfer across Kenya.
Mobile money interoperability trial stage was launched on Monday, 22 January 2018 and will be rolled out countrywide in March 2018.
Interoperability will increase efficiency and it is likely to increase competition once it is fully working.
Mobile money customers will enjoy a range of services that won’t tie them into a single mobile network.
Sending or receiving money between mobile money service providers has always been costly.
“Mobile money users will be able to send and receive money across networks once the pilot window is over.”
“The first phase of the pilot between Airtel Money and Safaricom’ Mpesa will start on Monday next week before Telkom Kenya’s mobile money system comes on board mid-February,” said Kenya’s ICT Cabinet Secretary, Joe Mucheru.
With over 70% market share as per the latest report by the Communications Authority of Kenya, Safaricom is the leading mobile money service provider in Kenya.
“What this means is that when you send money from one network to another, that money goes straight into your wallet.”
“As you know at the moment, when you send money across networks, you receive an SMS and you have to go cash it, and you can’t easily use it,” said Mucheru.
The Government has taken a positive method by bringing the mobile network together to agree on issues of national roaming, tower sharing, and termination rates.
These were some of the problems that were shown by a report ordered by the Communications Authority on market control.
The process of transferring funds for the Kenyan consumer will now be simplified by the introduction of Mobile money interoperability.
Currently to do an Mpesa withdrawal to Airtel Money, takes about four steps which is not so easy for the customer.