- More than seven million Kenyan customers and businesses can now transfer money internationally through SimbaPay
- Family Bank, a leading financial institution in Kenya, has partnered with SimbaPay so that its customers can make instant money transfers to China
- The two companies will be using WeChat to make transferring funds easier, an initiative that is set to bolster trade between Kenya and China
A leading commercial bank in Kenya recently signed a partnership agreement with London-based fintech SimbaPay. The partnership between SimbaPay and Family Bank will pave the way for the two companies to launch an instant funds transfer service from Kenya to China with the help of messaging and money transfer app WeChat. According to reports, the move will help boost trade between the two countries.
Over seven million businesses and individuals in Kenya can now use SimbaPay’s platform right from Family Bank’s Pesa USSD and mobile banking app service, a development that will make it easier for many of the bank’s account holders to send and receive money. The partnership will also make users’ funds more accessible. According to Family Bank executives, non-customers can still take advantage of the affordable overseas transfer rates by using the dedicated PayBill number on MPESA. The number is 261059.
Bilateral agreements between Kenya and China include technological cooperation, according to the Kenyan government. Officials note that China is the country’s biggest trading partner with Kenya importing Chinese goods worth an estimated US$4 billion in 2017 alone.
WeChat’s involvement is also a cause for celebration for both Family Bank and SimbaPay and their customers as the messaging app has reached one billion subscribers. WeChat is the largest social media and payments app in the country. The SimbaPay-Family Bank initiative effectively connects Africa’s biggest mobile platform to China’s WeChat and all payments are in real time.
In an interview with Family Bank’s Chief Operations Officer Godfrey Kamau, Kamau said: “This is a huge milestone for us and our customers. We are glad to extend, more so to our SME customers, a solution that offers an instant, reliable, traceable and affordable channel to send money to their suppliers and business partners in China.”
According to analysts, existing payments solutions between the two countries take multiple days before they arrive in the recipient’s account. In some cases, Chinese suppliers even need to physically visit an agent location to pick up their money. It is noted that the initiative between SimbaPay, Family Bank, and WeChat will help businesses overcome these barriers.
This kind of efficiency will enable Kenyan businesses to replenish their stocks more quickly, which will result in better trading for both countries. Apart from this, the partnership will also address the issue of financial inclusion in Kenya as smaller traders will be able to source goods directly from mainland China.
Apart from China, SimbaPay users can also transfer funds to friends and family to Kenya, Uganda, India, Niger, Madagascar, Burundi, Ghana, Rwanda and Tanzania.
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