Kenyans spent 59 billion ($590 million) sending money last year, said James Mwangi, Equity Bank CEO at a recent investor briefing , and that’s a lot of money.
A good chunk of the daily transactions payments and transfer involve people withdrawing money from their bank account to their phone which they then send (via M-pesa or other telco services), to recipients, who then re-deposit it in their bank accounts, also by phone. Some bankers feel that M-pesa does not pay it’s fair share of bank costs, as they are the ones who pay for insurance, cash in transit, cash handling fees – these are costs that consumers don’t see
So the banker’s umbrella body, the Kenya Bankers Association, has now set up Integrated Payments Service (IPSL), a fully owned subsidiary to provide technology-based payment solutions to the association’s member banks, at subsidized rates.
It is in testing with 20 banks, and once complete, the IPSL system will provide a safe, secure and cost efficient platform for person-to-person (P2P) money transfer.. (via) the five main bank channels: mobile banking (USSD & Application), internet banking, ATM, branch front office, agency Banking and POS.