Aug 23, 2012

Barclays bank to compete with M-PESA in remittance payments

Barclays Bank UK  is expanding  its new mobile phone app to Africa, which will see users send and receive money across international borders for free.

The mobile app dubbed as Pingit, allows allows people to link their bank account to a mobile number to send money. The app has already been downloaded over a million times in the UK.

Barclays is launching pingit in Kenya this week for international money transfer from the UK to Kenya. Kenyans in the UK will be able to send up to KES 99,000 per day with those in Kenya able to receive up to KES 660,000 a day. Barclays is targeting pingit at the 200,000 Kenyans who work and live in the UK.

M-PESA partnered with western union  in 2011 to allow international money transfer from 45 other countries to Kenya. Charges for sending money via M-PESA vary depending on the amount sent, the country from which it is being sent and the agent at which the money is being sent from. 

 It will be interesting to see how the free service from Barclays pingit competes with M-PESA.