Visa has partnered with four banks in Kenya to launch an Interoperable Mobile Payments Service to that will mount the first credible challenge to the country’s dominant Mpesa system.
The mVisa service allows people to send money to each other’s accounts without first loading a digital wallet, as well as pay for goods and services without a point of sale machine regardless of which mobile provider is being used. The mVisa app will initially facilitate transactions for people with accounts at four banks, including KCB Group Ltd. and Co-operative Bank of Kenya Ltd., according to Visa Emerging Markets Senior Vice President Uttam Nayak.
Visa, the world’s largest payment company, said mVisa should reduce the cost of remittances from overseas and, for businesses, automatically build up a library of transactions that will help banks provide services such as loans.
Kenya is one of the most attractive markets for mobile money because of the success of Mpesa, launched by Safaricom, which is 40 per cent owned by Vodafone, nine years ago. Read more