NAIROBI, September 3 – Mobile phone Company Safaricom and PesaPoint have entered into a partnership that will allow M-PESA registered customers to withdraw money from Pesapoint ATMs using their Safaricom phone, without the use of an ATM card.
Safaricom chief executive Michael Joseph said the agreement would increase the M-PESA agent network by 110 in 46 towns around the country.
Joseph said the project had been in the pipeline for at least one year to ensure that it was as secure as possible.
PesaPoint Managing Director Bernard Mathewmann said the agreement would allow subscribers to access a maximum of Sh20,000 per withdrawal at any time of the day, with the advantage being at odd times like at night when most M-PESA agents would be closed.
Customers will be expected to request for a withdrawal form, from their M-PESA menu and receive a one time ATM authorisation code. They input this code into the ATM together with their Safaricom phone number and the amount they wish to withdraw; the PesaPoint ATM then dispenses their cash and a receipt.
“Unbanked Kenyans can now access their money at any PesaPoint. Kenya is the 1st country in the world in which a card-less transaction at an ATM is available for traditionally unbanked users of mobile phones to withdraw cash,” Mathewmann said.
He explained that pin numbers for the withdrawal process would expire after every 2 hours in a bid to keep the procedure secure.
Safaricom launched M-PESA in March 2007 as a mobile phone payment service to enable customers makes financial transactions including money transfers.
M-PESA allows one to deposit, withdraw and transfer money and also buy Safaricom pre-paid airtime.