{
  "id": 19359174,
  "title": "Why lower transfer fees cannot easily break M-PESA’s mobile money dominance",
  "url": "https://urgent.news/2026/11/10/why-lower-transfer-fees-cannot-easily-break-m-pesas-mobile-money",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-10T15:56:51.000Z",
  "source": {
    "name": "TechCabal",
    "slug": "techcabal",
    "url": "https://techcabal.com/2026/11/10/pricing-gaps-m-pesa-pesalink-kenya/"
  },
  "original_language": "en",
  "account": "Despite the potential of lower transfer fees, it appears unlikely that PesaLink's mobile money dominance in Kenya will be threatened in the near future. Kenya's state-owned Postbank recently expanded PesaLink's network to include more than 600 branches and agent outlets, joining over 80 other financial institutions already on the system. This expansion has already led to an increase in daily processing volumes by 24% and monthly processing volumes by 41%.\n\nPesaLink has established itself as a key player in Kenya's digital payments market by offering a shared, round-the-clock system that enables customers to move money directly between bank accounts without relying on telecom operators or traditional clearing processes. The service has processed an average of KES 4 billion ($30.8 million) daily, and KES 110 billion ($846.5 million) monthly, with an impressive 98% success rate in transactions.\n\nHowever, M-PESA remains a formidable competitor, having already built a vast network of over 260,000 agents across the country. Customers can leverage M-PESA for money transfers, cash withdrawals, and bill payments, all within the same wallet. Additionally, many banks have struggled to effectively promote and market PesaLink, as the service does not enjoy the same level of recognition or convenience as M-PESA, which is already integrated into most Kenyans' mobile phones.\n\nThe Central Bank of Kenya (CBK) is currently developing a national Fast Payment System (FPS), which could potentially provide a unified network for banks, mobile money operators, and other financial institutions. If successful, this new system could either expand PesaLink's role or create a rival, potentially challenging its dominance.\n\nCurrently, PesaLink faces pricing challenges, as some partner banks have set high transfer fees for certain transaction amounts. For example, fees can reach KES 250 ($1.92) for larger transactions, while M-PESA and Airtel Money offer more competitive pricing structures, with smaller transfers being fee-free and larger transfers still costing less than PesaLink's fees. Nonetheless, PesaLink still offers advantages in terms of larger transaction limits and broader compatibility with various financial institutions.",
  "summary": "PesaLink has a less convenient last mile because funds received through the service are deposited into a bank account. Spending it may require a debit card, an ATM withdrawal, or another transfer to a mobile wallet.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}