Safaricom has partnered with eight more financial institutions to enable businesses that use Lipa Na M-Pesa to transfer funds to their bank accounts in real time.
The new partnerships with KCB, Equity Bank, Jamii Bora, Chase Bank, Cooperative Bank, Diamond Trust Bank, UBA and Consolidated Bank, brings the total number of banks which offer instant bank settlement for merchants to 10. Standard Chartered and NIC Bank started offering the service, which ensures the availability of cash or e-flat around the clock, in July.
“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.
Over the last three years, he said, 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. “These partnerships therefore aim to reduce the time to a minute or less, any day, any time,” he added.
Lipa Na M-Pesa Merchants can move between Ksh50 and Ksh50 million from their tills to their banks, with no limitation on the number of transactions.
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 our customers.
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