Posta goes for M-Pesa market with e-payment service

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The mobile money market is set for a shake-up after Postal Corporation of Kenya (PCK) launched its e-payment solution. Posta Pesa is expected to give mobile phone companies, especially Safaricom with its M-Pesa money transfer service, a run for their money.

Speaking during the launch today, Dr Alfred Matiang’i, the Cabinet Secretary for Information Communication and Technology said the new service makes Posta a national payment gateway because it has many points of sale solutions, supports transaction switching, mobile commerce and remote banking through internet banking.

“With such a robust shared infrastructure and CBK’s planned National Payment System integration, I believe Posta is best placed to be the umbrella payment gateway that will integrate all payment platforms to allow for interoperability and boost e-commerce in the region,” he said.

Posta Pesa will support agency banking, mobile money transfer, card-based transactions, e-commerce, online disbursements, e-payment of utility and e-ticketing. It will see financial institutions share payment infrastructure and capitalise on Posta’s expansive network of over 600 offices that will offer agency services Dr Enock Kinara, the Post Master General, said that Posta has already partnered with several banks such as KCB, Credit Bank, ABC Bank and Faulu Kenya and acts as an agent of utility companies like Kenya Power, Nairobi City Water and Sewerage Company and DSTV to pay bills.

“Posta Pesa is part of the organisation’s corporate strategic plan to realign operations and prop up its profit centres in order to realise growth by developing new products, reviewing price structures and diversifying its sources of income,” he said.

Posta has adopted ICT and innovations to remain afloat in a dynamic market after the inventions of online transactions including e-mail, mobile banking and SMS left the giant corporation almost on its deathbed as people preferred quick transactions to sending letters. Posta Kenya is targeting revenues of Sh20 billion by 2016 in its new strategic plan. Present during the ceremony was Mr Cyrus Maina, Posta’s board  chairman and Mr Samuel Poghisio, former Minister for Information and Technology.