Visa to launch mobile money transfer service in Kenya

Mobile Remittances

The cross border money transfer service is in its final stages of pilot testing and is due for implementation in October this year. The service will be available to all users, regardless of network, as they will be able to sidestep telecom companies by sending money on the Visa network. Existing mobile money transfer services have seen slow adoption due to restrictions from network providers.

The service is targeted at Africans sending remittances home from abroad – a total of $40 billion are sent back to Africa annually according to the World Bank. Visa’s move is expected to thwart local telecommunications firms, such as Safaricom in Kenya, who have positioned themselves to take advantage of this market.

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