Mobile money transactions hold steady after return of fees

Mobile money transactions hold steady after return of fees

An employee assists a customer to set-up M-Pesa money transfer servive on his handset inside a mobile phone care centre operated by Kenyan’s telecom operator Safaricom; in the central business district of Kenya’s capital Nairobi, file. REUTERS/Thomas Mukoya

> According to data from the Central Bank of Kenya (CBK), the value of mobile-money transactions in January stood at Ksh.590.4 billion represented in 173.9 million solo transactions.

The data reveals that Kenyans transacted Ksh.19 billion everyday during the opening month of the year represented in 5.6 million daily transaction.

This tally beats an average Ksh.14.9 billion in daily mobile money transactions represented by 5.1 million transactions between April and December when the waiver of fees on transfers was in existence.

The value and volume of mobile money transactions by Kenyans has held steady defying the end of free transfers up to Ksh.1000 at the end of last year.

While the sum of the transaction has slightly dipped from December, the deals have not seen a significant truncation as earlier premised.

According to data from the Central Bank of Kenya (CBK), the value of mobile money transactions in January stood at Ksh.590.4 billion represented in 173.9 million solo transactions.

Meanwhile, the number of mobile money subscriptions extended their recent expansion hitting 66.6 million from a flat 66 million.

The number of mobile money transacting agents similarly rose to 287,410 from 282,939 in December.

The data reveals that Kenyans transacted Ksh.19 billion everyday during the opening month of the year represented in 5.6 million daily transactions.

This tally beats an average Ksh.14.9 billion in daily mobile money transactions represented by 5.1 million transactions between April and December when the waiver of fees on transfers was in existence.Nevertheless, experts have previously warned that the size of mobile money transactions would wane slightly after the end of the fees cover with costs subsidies being seen as an incentive to the use of the service.“Lower fees will encourage Kenyans to continue using mobile money. Charges and commissions are usually considered a major factor towards adoption,” Abojani Capital founder Robert Ochieng told Citizen Digital in a previous interview. Record 2020 Backed by the cost incentives, mobile money transactions marked a record breaking performance in 2020.An analysis of CBK data on the transactions throughout the year reveals the might and potency of the platform on the economy.Kenyans for instance transacted Ksh.5.2 trillion on the mobile money platforms in the 12-month period represented in […]

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