Mpesa and Pesalink merger talks have generated lots of buzz. But Safaricom and Integrated Payment Services Limited (IPSL) the company that runs Pesalink have clarified that there are no talks going on. This as the Central Bank of Kenya (CBK) is set to launch a new Fast Payment System (FPS) that will connect payment services across banks and financial institutions and allow customers to send money across networks.
The Safaricom-Pesalink Partnership
The proposed merger was contained in a joint proposal to CBK by Safaricom and the Kenya Bankers Association (KBA). It would have made transactions between mobile wallets and bank accounts smoother and cheaper for users.
- Safaricom’s Position: Safaricom CEO Peter Ndegwa said the company is not considering such a partnership at the moment but promised to inform customers if that changes.
- Pesalink’s Position: Gituku Kirika, CEO of IPSL said Pesalink is open to partnerships with various financial and technology players. But no details on a merger with M-Pesa for now.
Central Bank of Kenya’s Fast Payment System (FPS)
The CBK’s FPS was announced in 2024 and is aimed at transforming Kenya’s payment space by creating a single platform for money transfers.
Key Features of FPS:
- Connects all banks and financial institutions.
- Allows 24/7 money transfers across all networks.
- Reduces multiple intermediaries and potentially lower costs.
KBA has welcomed the initiative with CEO Raimond Molenje saying since 2017 the association has invested in IPSL which operates Pesalink—an ISO 20022 certified instant payment switch.
Advantages of a Safaricom-Pesalink Partnership
Although this is speculative for now, a M-Pesa and Pesalink merger could bring:
- Cheaper transactions: M-Pesa to bank account transaction fees could be slashed.
- Interoperability: Customers can move money between mobile wallets and bank accounts.
- Financial inclusion: More access to underserved communities by connecting financial platforms.
Techies think this could compete with the CBK’s FPS and be good for both consumers and businesses.
Next
While the CBK’s FPS will connect the country, Safaricom and Pesalink will continue to explore ways to improve financial services. Since both platforms are interoperable, the possibility of a single system for Kenya’s digital economy is high.
As the FPS rolls out and partnerships mature, Kenya’s financial space will change and benefit consumers and put the country at the forefront of fintech.