Integrated Payment Services Limited (IPSL), the operator of Pesalink has moved to address technical and regulatory barriers that have slowed down the rollout of new payment services in the country.
Through a pact with the
Fintech Alliance, developers and startups will now be able to easily integrate
their systems with those of key banking institutions to enhance interoperability
for new payment avenues.
IPSL CEO Gituku Kirika said the agreement is expected to ease the integration of fintech startups into Kenya’s banking infrastructure, making it easier for them to deploy solutions such as real-time bank transfers, merchant payments, and digital bill settlements through Pesalink’s network.
“This MoU provides a scalable model for fintechs and infrastructure providers to co-create and deliver smarter, faster solutions to the market. By aligning on standards and driving interoperability, we are unlocking more inclusive and efficient payment experiences for all,” said Kirika.
According to IPSL, more than 27 fintech firms are already integrated with Pesalink.
Pesalink, which is owned by the Kenya Bankers Association, enables instant money transfers between bank accounts and is accessible through mobile apps, internet banking, and USSD platforms.
The new deal is expected to support more integrations by creating a standardised model for collaboration between startups and financial service providers.
The MoU comes at a time when Kenya is seeking to modernise its payments infrastructure and improve interoperability across banks, fintechs, SACCOs and mobile money providers.
“This partnership signals a new chapter of collaboration between fintechs and the payments infrastructure that powers Kenya’s banking sector. It reflects our shared ambition to scale innovations that are not only commercially viable but also financially inclusive. We look forward to leveraging this platform to create more customer-first solutions for the future,” said chairperson of The Fintech Alliance, Ali Hussein Kassim.
In 2023 Saccos Societies Regulatory Authority (SASRA) adopted a similar approach to help the smaller saccos secure their systems from sophisticated cyberattacks.
Fintechs have played a critical role in extending financial services to underserved communities and advancing customer-centric innovation.
The MOU working group will be working towards smoother integration for fintechs with Pesalink, enabling faster deployment of real-time bank transfers, bill payments, merchant services, and other account-to-account solutions via Pesalink. Currently, there are 27+ fintechs integrated with Pesalink.
As the umbrella body comprising leading sector associations which include: the Association of Fintechs in Kenya (AFIK), Digital Financial Services Association of Kenya (DFSAK), the Decentralised Credit Providers Association of Kenya (DCPAK), and the Blockchain Association of Kenya (BAK), the Fintech Alliance collectively represent hundreds of fintech companies operating in Kenya’s fast-evolving digital payments space.
