M-PESA Boosts Kenyan Digital Payments with KES 500,000 PesaLink Transfers
Kenya’s leading telecommunications provider, Safaricom, has significantly enhanced its M-PESA mobile money service, allowing users to send up to KES 500,000 ($3,850) in a single transaction directly to any bank account via the new PesaLink mini app. This pivotal update marks a major stride in the evolution of digital payments in the East African nation, further solidifying M-PESA’s role in the region’s financial technology landscape.
Expanding Transaction Capabilities and Regulatory Milestones
The integration with PesaLink, an interbank money transfer service operated by the Kenya Bankers Association (KBA), enables instant money movement between various local bank accounts. Previously, M-PESA users were restricted by a KES 250,000 ($1,925) limit per transaction, often necessitating split payments for larger sums. This new KES 500,000 cap eliminates that inconvenience, streamlining high-value transfers for both individuals and businesses. This development is the culmination of a series of regulatory approvals granted by the Central Bank of Kenya (CBK). In August 2023, Safaricom and its primary competitor, Airtel Money, increased both the maximum account balance and daily transaction limits to KES 500,000 ($3,850). Just a month later, in September 2023, the per-transaction cap for M-PESA was lifted from KES 150,000 ($1,155) to KES 250,000 ($1,925). These recent changes build upon previous expansions, such as the doubling of transaction limits in 2020 by regulators to support cashless trade during the pandemic.
These strategic enhancements underscore M-PESA’s ongoing transformation, moving beyond its foundational peer-to-peer transfer services. The increased limits and seamless integration with bank accounts through PesaLink position M-PESA as an increasingly viable platform for larger, business-driven payments and more complex financial transactions within Kenya’s dynamic digital economy.
Keywords
Related Keywords: tech news, technology updates, Microsoft news, Meta news, Metaverse updates, Machine Learning news, mobile tech trends, MedTech news, emerging technologies, modern tech innovations
