1 / 14

BREAKING NEW GROUND IN ELECTRONIC MONEY TRANSFER SYSTEMS: THE MOBILE REVOLUTION IN KENYA

BREAKING NEW GROUND IN ELECTRONIC MONEY TRANSFER SYSTEMS: THE MOBILE REVOLUTION IN KENYA. Presented By: James Njeru OUAGADOUGOU , 8 TH FEBRUARY 2011. AGENDA. Introduction Mobile Money Transfer Services Technical Features Services Offered Regulatory Framework

nedaa
Télécharger la présentation

BREAKING NEW GROUND IN ELECTRONIC MONEY TRANSFER SYSTEMS: THE MOBILE REVOLUTION IN KENYA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BREAKING NEW GROUND IN ELECTRONIC MONEY TRANSFER SYSTEMS: THE MOBILE REVOLUTION IN KENYA Presented By: James Njeru OUAGADOUGOU , 8TH FEBRUARY 2011

  2. AGENDA • Introduction • Mobile Money Transfer Services • Technical Features • Services Offered • Regulatory Framework • Benefits of the Money Transfer Service • Conclusion

  3. 1. INTRODUCTION • CCK is the regulatory authority for the communications sector in Kenya • Established in 1999 under the Kenya Communications Act ,1998(as amended); • CCK mandate has been enhanced to promote/facilitate efficient delivery of public sector services electronically and develop frameworks to minimise forgery in electronic transactions. • Mobile telephone penetration grown from (20,000 subscription) 0.053% in 1999 to 55% (over 22 million subscription) in 2010.

  4. 1. INTRODUCTION CONT.. • Mobile money transfer services started on 6th March 2007 by the Safaricom (MPESA). • MPESA has revolutionized business/other transfers in Kenya; • To date three other mobile operators have joined this market i.e. Airtel-“Zap”, Essar - “yuCash” and Telkom “Orange money”; • The Public Postal operator- PCK is yet to join the mobile money market

  5. 2 (A). MOBILE MONEY TRANSFER SERVICES • 81% of Kenyan population have no access to bank accounts • At Dec. 2010 mobile money transfer service had: • 16.7 million users (42% of the population) • 39,000 agents countrywide (employment) • Total transactions reaching USD 30 million a day and USD 900 million a month. • CCK works closely with Central Bank of Kenya to curtail money laundering/other illegal activities • Other products have been launched by financial institutions in collaboration with network operators (M-Kesho, Pesa Point, Pesa Pap).

  6. 2(B). WHY MONEY TRANSFER

  7. 3. TECHNICAL FEATURES • The service is provided on a telecommunication platform and relies on the SMS services • It needs an active SIM card with the functionality of money transfer service as configured by the operators. • To deposit/withdrawal a customer needs to go to an M-PESA Agent (This is confirmed by an SMS received by both the Agent and the Customer). • Minimum transfer Ksh.50 (US$ 0.625) up to Ksh.70,000/= (US$ 875) per transaction limit Ksh. 140,000/= (US$ 1,750) per day

  8. 3. TECHNICAL FEATURES CONT.. • Popularity of service due to: • Accessibility • Affordability • Simplicity • Acceptance of smaller transactions unlike banks; • Speed-instant transfers • Convenience • Received international recognition

  9. 4. SERVICES OFFERED • Deposit/Withdraw money • Transfer(send) money to registered/non registered customers • Buy prepaid airtime/purchase credit • Manage money transfer account • Pay bill and services; Utility bill payments • Buy goods and services • Bulk cash payments e.g salary payments • International money transfer • ATM withdrawals • Dividend payment • Social/Charitable collections • Banking

  10. 5. REGULATORY FRAMEWORK • Regulatory bodies (Central Bank of Kenya – CBK and Communications Commission of Kenya - CCK) promotes a stable & conducive environment for financial innovation to thrive and financial inclusiveness. • The regulators work with Government agencies to promote a sound, safe, efficient, innovative and inclusive financial system with no room for regulatory arbitrage. • Unified Licensing Regime - NFP, ASP & CSP; • CSP(Content Service Provider) to provide content which among others include money transfers, lottery, data downloading(ringtones etc) M-church- tithe

  11. 5. REGULATORY FRAMEWORK CONT.. • The public postal licensee allowed to provide operations of postal financial services among others; • CBK regulates financial services • CBK has developed regulations to facilitate and enhance electronic transactions and money transfer services • License conditions - all operators must set up customer care centers and file their complaint resolution procedures with CCK.

  12. 6. BENEFITS OF MONEY TRANSFER SERVICE • Build up of savings • Convenience, fast and efficient • Serving the unbanked and the under-banked thereby transforming livelihoods • Assist in the development strategies • Financial deepening and support development strategies • Affordability and ensuring universal access to financial services • Increased participation and development of markets

  13. 7. CONCLUSION • This is one area where the post has to take technology as an enabler rather than a threat; and turn challenges into opportunities. • Post has potential in this service owing to: • Countrywide & worldwide reach and/or destinations network • Traditional public trust confidence • It is an innovative service that will ensure financial inclusiveness large unbanked population among developing and underdeveloped countries. • Focus on simplicity & partnership

  14. Further Inquiries Visit our website: www.cck.go.ke Or Email: info@cck.go.ke Merci- Asante Sana

More Related