NAIROBI, Kenya – For decades, Savings and Credit Co-operative Societies (SACCOs) have been excluded from the national payment system.
However, with the dynamics in the digital payment, spearheaded by Integrated Payment Services Limited (IPSL), the operator of Pesalink, many co-operatives could gain access to the national ecosystem.
Why SACCOs should integrate with Pesalink
The partnership between Pesalink and Stima Sacco, signed on Tuesday, November 18, marked a significant shift in the SACCO digital payment ecosystem.
Speaking exclusively to News Nine, Pesalink Chief Executive Officer (CEO) Gituku Kirika noted that the instant payment network is committed to opening up the Sacco digital payment and realising full interoperability in the national ecosystem.
“We are able to open up the SACCOs. We have invested a lot in agent and merchant ecosystems. Those without PesaLink will find that they are limited to the customers of that particular institution.
“We are very proud to be working with all participants in the ecosystem, including SACCOs and banks, to open up their merchant and agent ecosystems, ensuring full interoperability in the market. And what that means is that it is a small value. It is a simpler life for customers, for payments,” Kirika explained.
Kirika added that the partnership with Co-operatives and other digital payment systems will enable Sacco members to access their money at any time and from any place, and transfer it instantly.
He said the partnership with SACCOs, including Stima, will power Kenya’s 24/7 economic transformation agenda.
“What that means is that you’re able to make payments whenever you want, be it on weekends, be it any time of the day or night. We are also enabling people and businesses to manage their cash flow more efficiently, as they no longer have to worry about making payments at a particular time,” he added.
The CEO stated that Pesalink looks forward to simplifying the lives of Sacco members through opening them up to the entire ecosystem of payments.
“SACCOs have up until now not been part of the mainstream financial system, and through Pesalink, we are helping bridge that gap.”
How Stima Sacco will benefit from Pesalink
Affirming the sentiments, Stima DT Sacco CEO Dr Gamaliel Hassan said the partnership with Pesalink will enhance financial inclusivity among members.
“This partnership does enable us to make it easier for Sacco members to actually conduct their business. This is a fundamental basic right and necessity for Stima Sacco members to access their accounts as and when they need them, and for as much money as possible. It is true value in terms of financial inclusivity,” said Dr Hassan.
The partnership stands out as one of the first in Kenya to integrate SACCO operations fully with a national instant payments platform.
For Stima Sacco, more than 220,000 members will benefit by sending and receiving up to KSh 999,999 per transaction instantly through the MStima App and USSD.
Dr Hassan added that the digital payment network from Pesalink will also ease the Sacco operations, allowing staff to navigate the reconciliation of transactions.
“In addition to this, the benefit for all employees is around the aspect of reconciliation. Because of the seamless nature of the transactions, it means that in terms of reconciling, especially with bank-to-bank transfers, that will truly ease the workload on my end. So we see true value in that,” he said.
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