Kenya has officially gotten a third payment service provider (PSP) following the Central Bank of Kenya (CBK) approval of Telkom Kenya’s bid. The telecom join Safaricom and Airtel Kenya as a PSP in the East African nation.
Telkom Kenya’s T-Kash went live early last week as the telecom seeks a slice of the lucrative mobile money market in the country. In an official statement issued last Friday, the CBK said the entry of a third PSP into the Kenyan mobile financial services space will work to the benefit of consumers. As the entry of Telkom Kenya will likely enhance the competition and innovation in the industry.
“The authorization is issued pursuant to the provisions of the National Payment System (NPS) Act, (No. 39 of 2011) and the National Payment System (NPS) Regulations, 2014 following the fulfillment of the stipulated authorization requirements,” wrote the CBK in a press statement.
On Wednesday last week, Telkom Kenya inked an arrangement with Interswitch East Africa to handle on their behalf the development and deploying of app solutions, payment gateway and the T-Kash codes. Interswitch East Africa will be tasked to oversee the fast tracking of the process at which Telkom Kenya’s mobile solutions reaches its customers.
The company will also help Telkom Kenya’s customers access services by other players in the financial services provision market with east. Interswitch East Africa currently boasts of a partnership deal with over 22 banks and now three telecoms in Kenya. The company managers a portfolio of over 1 million cards, a suite of bank ATMs, and as an agency network.
“Customers are now embracing technology more and more in all aspects of their lives and the mobile phone plays a key role in this revolution. We as Interswitch, are proud to be partner with the different stakeholders in this market as they navigate the financial technology (FinTech) age,” said Paul Ndichu, the CEO of Interswitch East Africa.