Mobile cash transactions are on course for the highest annual growth in a decade, highlighting the economic recovery and the increasing use of cashless payments platforms. - @BD_Africa
.@CBKKenya data shows that @SafaricomPLC M-Pesa, @AIRTEL_KE Money and @TelkomKenya T-Kash agents handled Sh5.64T in the 10 months to October, a 38 percent jump from the corresponding period last year.
This is the fastest growth in cash handled by agents in the January-October period since 2011 — when it grew 60% to Sh938 billion — with monthly transactions likely to remain high this month due to the Christmas festivities that are characterised by heavy spending.
The sharp rise this year reflects the recovery of the economy, led by sectors such as transport, education, information and communication, wholesale and retail trade. In Q2 of the year, the economy grew by 10.1%, the highest quarterly expansion in over four decades.
Kenyans have also embraced cashless payments following recommendations and incentives put in place last year to discourage the use of hard cash, which was deemed a potential avenue for spreading Covid-19.
The removal of fees for transfers between mobile wallets and bank accounts, which is still in force, has seen volumes go up.
Business owners now find it easier to deposit cash at mobile agencies and then transfer it to the bank, saving themselves the hassle of queuing in banking halls and the risk of transporting the cash physically to the bank branch.
The number of active mobile money agents rose from 287,410 in January to 295,105 in October, underlining the growing demand for their services across the country.
The number of active mobile money accounts also went up in the period, from 66.59M to 66.88M.
Mobile money platforms were, in the formative years, used primarily for person-to-person cash transfers but are now a major payment channel for businesses, a shift that has led to the growth in the amount of money moved through the wallets.
Mobile money transactions growth in Kenya hits a 10-year record bit.ly/3ygWZkM via @BD_Africa
• • •
Missing some Tweet in this thread? You can try to
force a refresh
