An Airtel shop in Nairobi. PHOTO | FILE
Kenya’s financial landscape has undergone a remarkable transformation, revolutionising how we handle money and conduct daily financial transactions. Today, with a simple click, anyone across the country, whether in Nairobi or Turkana, can seamlessly send and receive money using their mobile phones, regardless of their location.
This financial revolution has not only enhanced the lives of Kenyans but also played a pivotal role in bolstering economic development and fostering financial inclusion on an unprecedented scale.
A fin-access survey conducted by the Kenya National Bureau of Statistics (KNBS) and Central Bank of Kenya (CBK) shows that by 2021, access to financial services had grown to 83.7 percent compared to 26.6 percent in 2006.
One key driver of financial inclusivity in Kenya is the concept of mobile money interoperability, which empowers various mobile money service providers to facilitate cross-platform payments.
A standard case of interoperability is the Person to Person (P2P) transfer which allows you to transfer money between different mobile money platforms, such as Airtel Money, M-Pesa, and T-Kash. We also have the Merchant Interoperability where Airtel Money registered customers can make payments to any M-Pesa Buy Goods Till and Paybill Numbers. This not only saves time and reduces costs but also enhances the overall functioning of the financial system.
Setbacks
Yet, there are some setbacks Kenyans still encounter regarding mobile money interoperability, which include, the challenging customer journey encountered by subscribers of other mobile money operators when they try to send money to Airtel Money customers.
For example, all feature and smartphone users cannot send money directly to Airtel money from other networks, while using their Sim tool kit, and to top on to that, customers are charged high fees for the transaction.
With today’s technology advancement, I am sure these processes could be made better by allowing a seamless and trouble-free customer journey, where customers can send money directly to other recipients’ mobile money wallets.
The highlight of digital payments and money transfers is the convenience that comes with it; thus, it should not be a challenge for anyone to send and receive money regardless of their mobile money service provider.
The strides made in Kenya’s journey towards financial inclusion and economic growth are commendable. However, we must continue to expand and enhance the quality of our financial services. Achieving the full potential of mobile money requires sustained investments in infrastructure and the establishment of favourable regulatory frameworks. By doing so, we empower every Kenyan citizen and pave the way for a brighter economic future where financial inclusion is not just a goal but a reality for all.
Mr Malhotra is the managing director of Airtel Kenya.
