Airtel cleared for regional mobile money transfer

Corporate News

Bharti Airtel will announce the launch of cross-border mobile money transfers for its customers in Kenya, Rwanda and Uganda. PHOTO | FILE | NATION MEDIA GROUP 

By OKUTTAH MARK

In Summary

• The first phase of the cross border transfer service will be a pilot that starts in November.
• A full commercial launch across the region is scheduled “within the next one year”.

Airtel Kenya -- through its parent firm, Bharti -- is set to start cross border mobile money transfer services in Kenya, Tanzania, Uganda and Rwanda after receiving regulatory approvals from the four countries.

The first phase will be a pilot that starts in November with a full commercial launch across the region “within the next one year”.

“This follows approval by the Central Banks of… (the four countries),” said Airtel Money Head Chidi Okpala during the 2014 East African Business Summit in Rwanda. “This is a key milestone… because a big virtual barrier has been removed and our customers will be able to transact with ease across borders.”

The service comes eight months after Tanzania mobile provider Tigo launched cross border money transfer between Tanzania and Rwanda.

Business Daily could not establish how Airtel intends to handle foreign exchange rates across the four countries. For its service, Tigo incorporated currency conversion: Money sent in either Tanzania shillings or Rwandan francs is delivered in the currency of the recipient’s country.

“The service will extend convenience … while facilitating remittances and small trades within East Africa,” Okpala said.

Mobile commerce is gaining importance in the region for its huge role in speeding up transactions – saving time and money for people and businesses.

The introduction of more sophisticated mobile financial services through partnerships with financial-services providers has positively changed the way businesses operate, speeding up key elements of regional integration.