Home LATEST NEWS Mobile Money Interoperability: What You Need to Know

Mobile Money Interoperability: What You Need to Know

Mobile Money Interoperability: What You Need to Know


The one thing that economies need to succeed today is mobile money. The era of cash has gone and economies that rely on it are just stagnating themselves. For one, carrying cash isn’t as easy and you are barring proper money exchange in the economy if you don’t want mobile money.

With mobile money, all you need is a smart device or even a credit card, and you can easily transfer money from one person to another, facilitating everything from trade to daily household activities. For digital payment this will also help in transferring money to your Betin and take advantage of Betin Kenya promotion code.  Mobile money interoperability is here to stay, and here is all that you need to know about it.

Mobile Money Interoperability

Branchless banking and mobile money are two aspects of interoperability the Nigerian government wishes its citizens start using. On April 10, 2018, the Kenyan government launched wallet to wallet interoperability. The program is a product of combined efforts of Communications Authority of Kenya, ICT Ministry, and various other industry players. After Tanzania, Kenya is the second country to start W-W interoperability.

Before the introduction of W-W interoperability, Kenyan mobile money platforms operated as walled gardens, where users using a specific platform couldn’t transfer money to other one using a different platform.

Some of the common platforms that were used earlier were Airtel Money and M-Pesa. So if someone had to transfer from Airtel Money to M-Pesa, it would be considered an unregistered transaction on Airtel Money’s end. The receiver would have to go to an agent to withdraw the amount. This made cross-platform mobile money transfers very tedious and financial strenuous as agents would charge extra fees.

The New System: What Can You Do?

However, that problem is now a thing of the past because of W-W interoperability, resulting in a unified digital payments ecosystem and simplifying consumer experience. Interoperability is not only targeted at enabling cross-platform transaction but captures broader needs including wallet to a merchant, wallet to a service provider, and bank to wallet transactions. It essentially moves us further from cash transactions, as using it digital transactions become the most used platform.

According to a prediction made by World Payments Report 2017, international digital payments volumes will see an increase of 10.9 percent through 2020 and see nearly 726 digital billion transactions.

Joe Mucheru, cabinet security, ICT Ministry, said that Kenyan government making it easy to send money from one platform to another will reduce costs for mobile money service users. He also hopes that W-W interoperability improves accessibility and efficiency of mobile money transactions.

There are currently 25 million active subscribers of mobile money penetration, making digital ecosystem very important. Kenyan digital transactions are changing massively and will continue to do so. More and more people are increasing their interaction with mobile money services and therefore a high-level solution is absolutely needed to keep up with the demand. And therefore, mobile money is no more a simple one telco over another product but a unifying platform that conducts everyday transactions, which are an important part of the Kenyan financial ecosystem.