TUKO.co.ke journalist Wycliffe Musalia has over six years of experience in financial, business, technology, and climate reporting, which offers deep insights into Kenyan and global economic trends.

Safaricom PLC and Pesalink have responded to reports of a merger to enhance interoperability between mobile wallets and banks.

Techcabal reported that, through a proposal submitted to the Central Bank of Kenya (CBK) jointly with the Kenya Bankers Association (KBA), Safaricom sought to integrate M-Pesa with Pesalink to allow customers to send and receive money easily between banks and mobile wallets.

Speaking exclusively to , Safaricom clarified the information about the partnership, saying its customers will be the first ones to know if such a merger happens.

The leading telecommunications and mobile money service provider noted that no such discussions are currently ongoing.

"If and when this happens, we will inform all our customers. However, we are not currently considering such a partnership," said Safaricom.

Integrated Payment Services Limited (IPSL), which manages Pesalink, said the company is open to a wide range of financial and technology players.

The company Chief Executive Officer (CEO) Gituku Kirika revealed to that details of any merger can only be available if such an agreement is reached.

"Pesalink is an open and interoperable network that allows all Kenyans to move funds instantly and affordably in and out of any account or wallet held in a participating institution. Over 70 participants—including banks, fintech, SACCOs, and a telco (T-Kash)—are on the Pesalink network, and more are added every month.

"Integration discussions are always on with a wide range of financial and technology players. Further details can only be provided as and when agreements are reached," Kirika explained.

KBA was silent on the matter. Speaking through the chief executive officer (CEO) Raimond Molenje, the umbrella body said the full details of the merger remain with the two parties.

According to the Fintech Association of Kenya, the rumoured partnership could significantly lower transaction costs, reducing the current M-Pesa to bank fees.

Tech experts said the interconnected financial ecosystem is expected to benefit both consumers and businesses.

Some have likened the alleged merger to the planned CBK fast payment system (FPS) and its expected services.

In 2024, the banking regulator announced plans to introduce FPS across all banks and financial institutions.

CBK said the industry technical working group would design, launch and roll out the financial solution, which would integrate certain payment services and enable customers to send and receive money on any network, anytime and anywhere.

KBA welcomed CBK’s announcement of a technical working group to inform the development of FPS for Kenya.

CEO Molenje revealed that since 2017, KBA has invested in IPLS, the operator of Pesalink—the open, interoperable, and ISO 20022-certified instant payment switch across financial institutions.

Source: TUKO.co.ke