Business News
Postal Corporation upbeat over its cash transfer service
Kenya Data Networks chief executive officer, Kai Wulff (left) and Post Master general Fred Odhiambo, during the signing of a partnership deal between KDN and Postal Corporation of Kenya on Wednesday. Photo/LIZ MUTHONI
Posted Wednesday, February 18 2009 at 14:40
Postal Corporation of Kenya is still confident that its money transfer service, Posta pay will survive the onslaught by competition.
According to Postmaster General, Fredrick Odhiambo, the services is still ridding on its ability to transfer huge sums of money.
“While the other services can only transfer a limited amounts of money, our services can transfer up to Sh200,000 for every transactions,” said Mr Odhiambo.
The competition in the money transfer business this week got tougher following the entry of another player.
Zain Kenya, launched their mobile money transfer named Zap, joining Posta Pay of Posta Kenya and M-Pesa of Safaricom.
However the two mobile-based transfers have a limit on transactions that can be carried out in a single day.
This is per the regulations issued by the banking sector regulator Central Bank of Kenya
The large number of non-banked Kenyans who find the services convenient and hustle free has accentuated the demand.
However, because of the competitions, value addition has also become a hallmark in service provision.
This has seen the services form a core on household utility payment.
“We are now enhancing communications between our branch networks across the country to ensure that we improve the services as we bring in more partners into play,” added Mr Odhiambo.
Mr Odhiambo was speaking to journalists at his office on Wednesday when he signed a deal with Kenya Data Networks to vendor the latter’s Internet scratch cards.
Through the deal, Posta will be selling the KDN top up cards in all its branches for a commission.
“We aim to increase the availability of our current distribution system that is dealership based, through this partnership with Posta Kenya,” said Kai Wulff, KDN chief executive.
Alongside the top up sales, KDN will also be establishing Wi-Fi hotspots-access point in all the 800 branches of the state corporation.
“This is aimed at letting the customers top up and access the Internet within the branches if need be,” explained KDN marketing manager Vincent Wangombe.
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