Banks take on M-Pesa with own money transfer service

Kenya Bankers Association Chairman Habil Olaka (right), Vice Chairman John Gachora (left) and Integrated Payment Services Limited Chief Executive Jennifer Theuri during the launch of PesaLink at a Nairobi hotel. (Photo: Wilberforce Okwiri/Standard)

Banks have activated their inter-bank switch to enable customers transfer money from one bank account to another in real time.

In what is likely to hot up competition among mobile money service providers, Kenya Bankers Association (KBA) has secured approval from the regulator to allow inter-bank transactions ranging from as little as Sh10 to as much as Sh999,999 through the PesaLink platform.