The umbrella of commercial banks’ industry body, Kenya Bankers Association (KBA) has established a payments technology delivery service firm to provide technology-based payment solutions to the association’s member banks, at subsidized rates.
Speaking when he confirmed the setting up of IPSL, KBA Chief Executive Officer, Habil Olaka, said the launch was part of the Association’s mandate to continue reinforcing a technology-driven and vibrant banking sector, responsive to the dynamic consumer needs.
Olaka says the Integrated Payments Service Limited (IPSL) was set up under the Central Bank of Kenya, National Payment System (NPS) guidelines and will interconnect all banks in Kenya. The firm will also inform policy direction and manage the risks associated with payment systems in the market, while providing technical and related guidance to KBA member banks, according to Mr Olaka.
“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.” Said Olaka.
The firm will soon be unveiling an interoperable, advanced person-to-person (P2P) payment solution which is currently on its testing phase with a complement of more than 20 member banks participating in the User Acceptance Testing (UAT) 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.
