Embracing Technology: Electronic money transfer

By Fabian Kyale

Electronic money transfer has radically changed money transactions in Kenya. It is now easier to send and receive money. You can also buy goods and services using this form of technology. Many companies have ventured into this business with Safaricom rated as the leading service provider running M-pesa services. Others include Airtel Money, You Cash, Orange and Tangaza Pesa.

In Mutomo, the business is booming. The centre has a lot of electronic money transfer outlets. One of the operators confided in Mutomo Citizen Voices (MCV) that the business can realize up to twenty thousand shillings in a day depending on the frequency of transactions. Service providers also may extend to them other goodies like t-shirts, phones and scratch cards.

Electronic money transfer outlet (Photo: Sam Gitonga/MCV)

This form of business is beneficial to the residents since it has minimized theft cases. People no longer carry money in their pockets but deposit it in their M-pesa accounts. They will only access it when the need arises.

Safaricom Company has gone an extra mile to partner with Commercial Bank of Africa to offer M-Shwari service. This is an extension of M-pesa service which enables the customer to run a savings account in a bank using a mobile phone. This is bound to make the unbanked members of the community like in Mutomo to save their money for future use with the simplicity of a phone.

In spite of the many benefits brought by the service, it has its own fair of challenges. There is high competition for the limited customers. Banks in Mutomo are going a notch higher to ensure that they attract customers to their side. As such many people may find it easier to save money in the bank than a phone where you can access it easily and therefore prone to misuse. 

Competition amongst operators also is stiff here.  Virtually every street has an average of three electronic money transfer shops. This is because of the notion that the venture is a viable business in the area. Due to this operators now have resorted starting other allied business within the premises like phone charging and printing bureaus.

With all this, electronic money transfer remains iconic in the dusty town of Mutomo that lies in the southern part of Kitui County