Kenyan mobile money firm to pioneer int'l cash transfers

Kenyan mobile phone operator Safaricom is working on the introduction of an international business-to-business cash transfer service, which would enable local companies and importers to pay for goods internationally.

Brian Wamatu, head of mobile money product, M-Pesa service told Xinhua on Thursday that using new lessons learnt from Chinese mobile money product, Alipay, which does not depend on agents to run its business but creates a payment platform, using mobile phones, mostly smart phones and cards to facilitate payments, the Kenyan firm would improve its customer experience.

"We are in the journey to get what is best for our customers to customize some of those features used in Alipay to get what is best for our customers," Wamatu told Xinhua in an interview in Nairobi.

The introduction of the money transfer to international destinations is still pending an approval of the Kenyan Central Bank.

Safaricom's most successful business unit, M-Pesa, its mobile money transfer service, has become a major payment platform, currently used by over 10,000 companies to receive funds from bills.

"We have the highest transactions by volumes and value from our mobile payment system," Wamatu said, referring to how the firm's product, M-Pesa, has managed to capture the market.

At least 57,000 merchants are using M-Pesa service, which enables their businesses to receive cash from commercial transactions, Wamatu said.

He said M-Pesa has remained a stable product, used in the economy to improve the customer experience and has contributed much to an improved business environment in Kenya.

At least 95 percent of all e-commerce operations in Kenya are currently taking place on the M-Pesa platform.

Wamatu said M-Pesa was currently in talks with businesses around the world for its business partnerships and especially with Chinese companies.

These partnership talks are driven by the fact that China is a growing trade and investment destination for Kenyan businesses.

"We are exploring possibilities because most of our customers are asking to use M-Pesa for international trade. We are working on a few things, which include seeking the Central Bank of Kenya (CBK) approval and testing of the product before it comes to the market," Wamatu said.

The launch of the new Safaricom international payment platform comes as Alipay, one of the world's leading payment platforms, plans to enter the Kenyan market.

Wamatu said the success of the Kenyan money transfer product was a result of strategic communication with customers. He said Safaricom welcomed the entry of competitors because the Kenyan market was still largely a cash-based economy.

"It took a lot of for us to educate the customers on the need for this service," Wamatu said.

SOURCE:Xinhua