Users are charged a small fee for sending and withdrawing money using the service. Click to see the list of bakaal cash pick up locations. Remits advantage is that it is the fastest, cheapest, and safest way for africas diaspora to send money home. Send money to the top cash pickup locations and banks throughout kenya, such as kenya commercial bank, kenya post office savings bank, and sbm bank. The wave of mobile money transfer in kenya can be traced to introduction of mpesa johnson, 2012 and hence the reason for studying mpesa in making conclusions on the effect of mobile money transfers service on financial deepening. Mobile money services started in kenya in 2007 through mpesa m for. Influence of mobile money transfer services on the. In addition, you can make payments directly from your coop bank account to any local bank. The central bank reserves the right to intervene in the monetary market to avoid price volatility, but it refrains from intervening except in the case of disruptive. Money transfer transactions undertaken by the bank at the customers request shall be subject to the restriction on transactions established by the alliance partner, payment centers or the receivers bank and, accordingly, the payments to designated receivers or the crediting of amounts to the receivers bank account shall be made only to. The benefits of mobile money in kenya best countries. Send money online, in person, by phone western union. So if you need to transfer money to kenya, we can give a better deal on your exchange than high street banks can offer.
Most people probably dont think of kenya as an innovation and technology hub, but in 2007 it became the launching pad for mpesa, a transformative. If you need to send your money to kenya you can compare the rates, services, and fees of these providers and find the one for you. Safaricom opposes proposed tax hike on mobile money transfers in kenya june 19, 2018 safaricom cfo sateesh kamath said monday that the company firmly opposes a proposed tax hike on mobile phone transfers that the kenyan government wants to impose to. Enabling mobile money policies in kenya foreword the innovative use of mobile phone technology to drive financial inclusion in kenya has been widely acclaimed around the world. If you use western union it is very fast and the recipient will receive funds as soon as you give them the mctn number and the secret question and answer. The pesalink service allows you to transfer money into a coop bank account instantly from another bank. A study finds the mobilemoney service mpesa has lifted 194,000, or 2 percent, of kenyan households out of poverty, having greater impact on femaleheaded households and helping 185,000 women shift from farming to business occupations. Enabling mobile money policies in kenya fostering a. Users of mpesa are charged a service fee for sending and withdrawing money. Mpesa works digitally and in real time, which means your family or friends living, working or travelling in kenya will receive the money much more quickly than a traditional bank transfer. Remittances are sent from migrant workers to their families in their home countries.
The effect of mobile phone based money transfers on the. Mobile money transfer facilities have come as a panacea to a plethora of liquidity. The central bank of kenyas treatment of mpesa the kenyan mpesa mobile telephone banking service was first conceived by safaricom in 2005. Mpesa is a mobile money transfer service owned by safaricom and since its introduction in 2007. This was revealed after data from the communications authority of kenya analysed data relating to mobile money transfers from mpesa, airtel money, orange money, equitel money, mobikash and tangaza. The free account mpesa is offered by safaricom kenya, a leading mobile phone service operator and is a technological breakthrough say the operators. How to transfer money from mpesa to any bank account in kenya. In 2011, a global network of agents of moneygram has grown up to 256 000 service points, thus its growth is 24% compared to the same period of the previous year. Case study enabling mobile money transfer the central bank. Im trying to transfer the fees for a student we are sponsoring at the kemu but my bank are saying i need an iban number but the university are telling me their bank doesnt have one and that kenya is not yet set up with these.
Kenyas money transfer regulations the shilling floats freely and is fully convertible to foreign currencies, the government imposing very few restrictions on capital flows. Western kenyas households combine subsistence agriculture with. It enables subscribers to send large volumes of money in an instant transaction. Apr 03, 2007 the lives of many kenyans are being transformed by an innovative mobile phone money transfer service. Pdfinternational money transfer service terms and conditions. Western kenyas households combine subsistence agriculture with numerous other. Mobile payments are facilitated through one of these services, mobile money, which allows any individual to register for a mobile wallet, through which they can store and send money on even a basic, inexpensive phone. Africa is very important, probably the most important region globally. It is developed and owned by kenyan banks through their umbrella body, kenya bankers association kba. When transfering money from a bank account in the uk to worldwide overseas bank accounts such as in kenya then pay2globlal are an excellent platform for you to.
Such as equity banks acquisition of an mvno license through its subsidiary, finserve. Safaricom opposes proposed tax hike on mobile money. The global leader in mobile money is kenya, where mobile network operator safaricom launched mpesa in 2007. Aug 21, 2014 on 15 august the cabinet secretary for the national treasury issued a legal notice1 officially giving life to the national payment systems regulations, 2014.
Mpesa is a mobile phone based money transfer system in kenya which grew at a blistering pace following its inception in 2007. This is a simple guide on how to transfer money from mpesa to any bank account in kenya as of 2018. Mpesa, kenyas mobile money initiative, turns 10 cnet. Impact of mobile money in kenya mit sloan executive. Mit sloan executive education blog mobile money on the rise while the developed world continues trudging through a slow economic recovery, parts of the developing worlds economy are being rapidly transformed by a new form of disruptive technology. Remit send money to uganda kenya rwanda mobile money. Structural weaknesses in the financial industry in kenya, however, limit the access to money transfer services, especially in. Enabling mobile money policies in kenya fostering a digital. The countrys successful mobile banking and payments initiative, mpesa, turns 10, while the rest of the world plays catchup. Bank transfer send money to checkingcurrent, savings and business accounts with all the major banks in kenya you cannot send to business accounts with diamond trust banks. This pdf is a selection from a published volume from the national.
As the use of mobile phones for money transfer is relatively recent, there are no comprehensive. Pdf kenyans use mobile money services to transfer money to friends. How long does it take to transfer funds from uk to kenya. The international money transfer service is a service that is offered by the bank to the customer, and all of the rights and obligations of the customer under the international money transfer service and money transfer transactions including money transfer requests, their cancellation and. Transfer money to kenya compare and save fxcompared. On 15 august the cabinet secretary for the national treasury issued a legal notice1 officially giving life to the national payment systems regulations, 2014.
This study sought to find out whether the introduction of mobile money has been accompanied by a significant shift in saving and money transfer practices used by lowincome earners in kenya. Concerns in mfs regulation in kenya include interoperability in view of a dominant. The lives of many kenyans are being transformed by an innovative mobile phone money transfer service. The service enables its users to deposit and withdraw money, transfer money to other users and nonusers, pay bills, purchase airtime and transfer money between the service and, in kenya, a bank account. Family networks of mobile money in kenya findev gateway. Kenya s equitel is now the second largest mobile money service in terms of transaction values. Mar 20, 2007 58% most popular way to transfer money in kenya. Sending money to kenya via mpesa is a lowcost, fast and safe way to pay, transfer, receive and store money. When transfering money from a bank account in the uk to worldwide overseas bank accounts such as in kenya then pay2globlal are an excellent platform for you to use to do this.
Send money to kenya transfer to mpesa money to africa. Pdf the effect of mobile money on saving and money. Click to see the list of wari cash pick up locations. Nov 11, 20 residents transfer money using the mpesa banking service at a store in nairobi, kenya, on sunday, april 14, 20. Mpesa is a branchless banking service that allows customers to withdraw, deposit make payments such as paying bills and buying goods mobile money transfer in kenya. The emerging social and economic impact has been remarkable. This case study is a useful addition to the body of literature on what has driven this success story. Instant money transfer to mobile wallets and bank accounts in africa. Pdf security challenges of mobile money transfer services. Hearthholds of mobile money in western kenya findev gateway. Residents transfer money using the mpesa banking service at a store in nairobi, kenya, on sunday, april 14, 20. Structural weaknesses in the financial industry in kenya, however, limit the access to money transfer services, especially in rural areas and for lowincome people.
It actually depends on the online money transfer method you use and the availability of the. Case study enabling mobile money transfer the central bank of. One fifth of kenyas mobile money transactions are now. Kenya sets world first with money transfers by mobile money. We examine how mpesa is used as well as its economic impacts. You can transfer as little as ksh 10 up to ksh 200,000 at an extremely low cost between ksh 0 to ksh 152, depending on the amount you transfer. The countries covered include united states of america usa, united kingdom, germany, france, italy, saudi arabia, india, china, united arab emirates, and many others. It has since expanded to tanzania, mozambique, drc, lesotho, ghana, egypt, afghanistan, south africa, india, romania, and albania. How the mobile phone changed kenya in a country with limited banking and few landlines, cell phones are used to transfer funds by text, to send hungry people money instead of food, and to.
Today rural kenyan households often combine subsistence farming, trading. Select account number and enter your bank account number. The benefits of mobile money in kenya best countries us news. Kenya is a beautiful country situated on the equator in east africa that also has a coastline with the indian ocean. Sending money from united states to kenya remittance prices. Other money transfer solutions cooperative bank of kenya. Now that the security challenges of mobile money transfer. Afi case study enabling mobile money transfer 01 the following case study discusses the period of development of the mpesa mobile payment product from concept inception in 2005 to december 2008.
Pdf mobile money transfer in kenya ronald m khavagali. Structural weaknesses in the formal financial industry in kenya, however, limit the access to money transfer services. Kenyas been schooling the world on mobile money for 10 years. This site provides data on the cost of sending relatively small amounts of money remittances from one country to another. Mobile money, also referred to as mobile payment, mobile money transfer, and mobile wallet, generally refers to services operated and performed from a mobile. Kenya is not even in the top 5 5, despite its success in the use of mobile money for p2p transfers. Please contact agent to confirm available currencies. We have a bouquet of money transfer services for you to choose from. How the mobile phone changed kenya in a country with limited banking and few landlines, cell phones are used to transfer funds by text, to send hungry people money instead of food, and to plan for. While kenya has been the biggest success story in terms of overall usage, somalia, tajikistan and albania lead on use of mobile money for bill payments. This study focused on investigating the drivers of the adoption of mobile money services and the subsequent performance of small and medium enterprises smes in zimbabwe. Gsma kenyas new regulatory framework for emoney issuers.
Kenyas equitel is now the second largest mobile money service in terms of transaction values. Jan 05, 2017 the benefits of mobile money in kenya more a kenyan passenger uses a mobile phone and a bebapay card, a mobile phonebased money transfer service that allows transit passengers to pay their bus. The cheapest way to send money to kenya is via skrill, this is because skrill is the only money transfer platform connected to mpesa which is the most wide spread money transfer system in kenya, transfering money from this platforms takes a few minutes and almost instantanious to mpesa. The effect of mobile money transfer services on financial. Send money to kenya transfer money online safely and. Remit is a remittance transfer service built by eversend ltd that offers realtime debit or credit card to mobile money transfers from all over the world to registered mobilemoney users in uganda, kenya and rwanda. Top 10 kenya money transfers send money to kenya from uk. It requires efficient, reliable and affordable money transfer services whereby money can be deposited in one location and withdrawn in another in both urban and rural areas kim et al. The benefits of mobile money in kenya more a kenyan passenger uses a mobile phone and a bebapay card, a mobile phonebased money transfer service. Once done, give the form to our agent, along with the money you wish to send, then show a valid id.
Kenya sets world first with money transfers by mobile. A worldremit transfer is one of the fastest ways to make payments and send money to your loved ones in kenya. Sources combine academic publications with a majority of. This is a safe and reliable money transfer option of sending money from your coop bank account into another bank account in kenya. Tanveet suri shows that a mobilemoney service called mpesa had a longterm impact on poverty in kenya, writes tina rosenberg for the new york times. Just choose from the following options to make your transfer. A global leader in electronic money transfers and payments, western union has more than 26,000 agent locations across the african continent and in april last year partnered with safaricom to offer mobile money transfer services to kenyans living abroad. The researchers found that mpesa helped women graduate from subsistence agriculture to small business, perhaps because having an mpesa account gives a woman her own moneyand a greater sense of agency. Send money to kenya online fast with worldremit worldremit. Moreover, about 27 million peoples lives have been touched by the power of using mpesa. Publication of the legal notice crowned the long wait for a formal legal framework for mobile money in a country where there are over 26. How the mobile phone changed kenya the irish times.
935 1493 1089 32 376 1458 1513 436 1135 510 807 378 1303 217 873 1248 49 742 1312 856 306 644 899 1353 53 872 565 884 964 365 885 641 377 63