Nairobi, Kenya – Integrated Payment Services Limited (IPSL), the operator of the instant payments network Pesalink, is preparing for a major transformation of Kenya’s digital finance landscape.
The firm announced plans to launch Pesalink ID and to reduce transaction fees to below KSh 10.
Targeting a 10% market share
In an interview with News Nine, Pesalink CEO Gituku Kirika said the strategic initiative, which also includes expanding person-to-merchant (P2M) payment capabilities, aims to increase the market share of instant payments significantly.
“Currently, banks command less than 2% of the payments market in the country. Of this, the share of instant payments enabled through Pesalink is less than 0.05%. We aim to grow that share to at least 10% of the payments market in the country within the next five years,” Kirika stated.
Kirika spoke to News Nine on the sidelines of the inaugural Pesalink 2025 Bank Awards, which recognised top-performing banks in instant account-to-account payments, including Equity Bank, SBM Bank, and Bank of Africa, for their commitment to reliability, affordability, and simplicity.
Equity Bank secured first place in the Weighted Growth Rate category, while SBM Bank led the Simplicity and Affordability category.
Despite connecting over 80 financial institutions – including banks, SACCOs, and fintechs – the banking sector currently accounts for only a small fraction of the country’s payments ecosystem.
The CEO explained that this ambitious target will be achieved through new products and simplified, affordable pricing.
Introducing Pesalink ID
A key part of this expansion is the relaunch and enhancement of the current mobile number-based identification system into Pesalink ID.
Kirika said the enhanced identifier will offer consumers much greater flexibility and interoperability.
The new Pesalink ID will allow users to link their instant payment service to various identifiers, including:
- Mobile phone number (current system)
- National ID number
- Any other 10-digit number provided by their financial institution
He said the single ID will be mappable to any stored value, such as a bank account, a SACCO account, a fintech wallet, or a telco wallet.
“This means a sender will only need the recipient’s 10-digit Pesalink ID, regardless of where the recipient chooses to receive the funds. IPSL is currently piloting this service with plans to roll it out in the first quarter of next year,” said the CEO.
Simplified and sub-KSh 10 pricing
To improve affordability, the CEO noted that IPSL is moving away from its current tiered pricing structure based on transaction size.
The firm is advocating for a single, low price for all transactions, regardless of the amount sent.
“We are advocating for one price, irrespective of the amount being sent. For us, that delivers simplicity and affordability as well,” he confirmed.
This move aligns with the Central Bank of Kenya’s (CBK) call for the cost of digital payments to fall below KSh 10 per transaction, a level at which Pesalink intends to compete.
The new strategy also focuses on person-to-merchant (P2M) payments, aiming to open both merchant and agent cash-in/cash-out ecosystems to all Pesalink participants – banks, SACCOs, and telcos.
The IPSL CEO highlighted the importance of transparency and trust at the recent awards ceremony.
“Every successful instant transfer represents trust fulfilled. These awards highlight the banks making payments faster, safer, and more affordable for millions of Kenyans,” he stated.
Kirika noted that the forthcoming Pesalink ID and simplified pricing model underscore IPSL’s commitment to building a truly inclusive and efficient national payments network, setting a new benchmark for instant transfers in Kenya.
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