Safaricom has partnered with eight more financial institutions to enable businesses which use Lipa Na M-PESA to transfer funds from their Lipa Na M-PESA tills to their bank accounts real time, any day of the week.
“This is a progressive move in our pursuit to create a Cash Lite financial ecosystem. It not only reduces the inherent risks associated with cash handling, but also ensures Merchants always have access to working capital which will definitely improve their business efficiency,” said Bob Collymore, Chief Executive Officer, Safaricom.
The new partnerships are with the following banks:
- Equity bank
- Jamii Bora
- Chase Bank
- Cooperative Bank
- Diamond Trust Bank (DTB)
- United Bank of Africa (UBA)
- Consolidated Bank
This brings the total number of banks which offer instant bank settlement for merchants to ten. Standard Chartered and NIC Bank started offering the service, which ensures the availability of cash or e-flat around the clock, in July.
“Over the last three years, tremendous progress has been registered in the bank settlement process, making it possible for Merchants to access funds within the same day. This was however subject to bank’s operating hours and working days”, said Mr. Collimore.
These partnerships aim to reduce the time to a minute or less, any day, any Lipa Na M-PESA Merchants can move between Kshs. 50 and Kshs. 50 million from their Lipa Na M-PESA tills to their banks, with no limitation on the number of transactions that they can make within a day.
“One of the objectives we set out to achieve with M-PESA is to grow the cashless and cash lite economy, by providing end-to-end solutions that cater for the entire ecosystem starting with the customer, to the business owner and their suppliers. This is a significant step in this direction.” Collymore added.
The partnerships complement other initiatives introduced over the recent months to deepen financial inclusion and expand the M-PESA ecosystem by providing relevant products and services to Safaricom’s customers.