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Banks end free money transfer offer

Commercial banks have concluded a promotional offer of free use of interbank money payment switch known as Pesa Link.

Customers enjoyed free access and tariff-free services on the platform for two months until August 11 to encourage uptake.

Banks are charging different fees in a mixed strategy.

A review of the suspended tariffs in April showed that some banks have low rates of Sh40 and below for sending amounts of up to Sh999,999, signalling that they see the service as more of a value-add than an income stream.

READ: 23 banks sign up to PesaLink mobile banking platform

Others are charging up to Sh200, indicating a bid to prevent loss of revenue from PesaLink, which is expected to eat into the usage of other payment options, including cheques.

“It’s a free market. Each bank is free to determine what the appropriate charges are,” Habil Olaka, the chief executive of Kenya Bankers Association said earlier.

“The banks are also in competition, so you can’t set unreasonably high rates. The CBK must approve the products and one of the issues considered is the fees.”

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