Safaricom Financial Services General Manager Betty Mwangi-Thuo said the new service adds another 12 financial institutions to M-PESA’s existing network with 25 banks and over 95 Saccos and Micro Financial Institutions.
“For the participating banks you can actually do a transaction on your phone moving money from your bank account to M-PESA and from M-PESA to your bank. You can go to an ATM and using your bank card you put money directly on your M-PESA,” she explained.
The service will allow customers to transfer funds via any of the 80 PesaPoint ATMs countrywide on a 24-hour basis.
Paynet Group’s CEO Bernard Matthewman said the new system will leverage the high security payment switch to give M-PESA customers safe access to their bank accounts at the cost of a normal ATM withdrawal.
“The system asks for a single number which it will record and keep. You will not be able to transfer from your bank account to another person’s phone, for that you would just use the M-PESA transfer system,” he said.
Matthewman says the partnership opens the door for PesaPoint to venture into other innovative services to provide convenience to customers.
“We have been innovating to ensure that whether what you have is a card or a mobile phone, you can withdraw cash, pay bills, buy airtime and soon will be able to buy prepaid electricity at a PesaPoint ATM,” he added.
PesaPoint is currently undertaking a similar role for M-PESA for the card-less cash withdrawal service with Vodacom in Tanzania.
In March Safaricom reviewed its M-PESA tariffs allowing customers to send and receive amounts as low as Sh10 and transfer funds for Sh3.
M-PESA revenue grew 43 percent to Sh16.9 billion, in Safaricom’s 2012 financial year, with 15 million registered users and 40,000 nationwide outlets.