Bankers association sets up subsidiary to operate interbank transactions
The Kenya Bankers Association has set up a subsidiary to run and operate the interbank transaction switch.
Integrated Payments Services Limited (IPSL) is seen as the banking sector’s play to have greater control of payment transactions given the popularity of mobile money transfer services.
KBA Chief Executive Habil Olaka says the new subsidiary will be mandated with reinforcing a technology-driven and vibrant banking sector.
“At KBA, we have set our sights on facilitating cost effective, secure commercial banking solutions as part of our goals to more than double formal banking penetration rates in Kenya,” Olaka said, adding that, “IPSL, is therefore coming on stream to address the inefficiencies within the banking payments system in Kenya, with the value proposition for innovation, enhanced efficiency and risk management.”
IPSL is already trialing a new person to person payment solution with at least 20 of the country’s 42 banks taking part in the trials.
Once complete, the IPSL system will provide a safe, secure and cost efficient platform for person-to-person (P2P) money transfer.
These transfers will be initiated from the five main bank channels: Mobile banking (USSD & Application), Internet banking, ATM, Branch front office, Agency Banking and POS.
Banks have over the last couple of years looked to ways to cut down reliance on mobile operators in providing payment solutions to customers.
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