The Central Bank of Kenya (CBK) wants to develop a new feature, a system that will allow instant payments, the biggest advance in the East African country’s money transfer network.
The Fast Payment System (FPS), will allow instant transactions across all financial institutions based in the country, including Commercial banks and payment service providers (PSPs).
FPS will allow Kenyans to pay bills, send money, receive money and conduct other transactions regardless of their bank.
It is a project that seeks to fix the interoperability issue that has made it a pain for payment systems to speak to each other.
“(FPS) will integrate certain aspects of payment services that are offered by financial institutions. FPS will enable customers to send and receive money instantly from anyone, anytime, anywhere, regardless of the type of institution a customer belongs to,” the CBK said in a statement.
The Central Bank However, did not specify When the New Feature will be launched.
Once implemented, FPS will make it easier for Kenyans to access financial services and stimulate economic activity through faster payments.
CBK Adopts new Platform for Bulk Payments.
The Central Bank of Kenya (CBK) has instructed banks to notify their customers about the migration of the Kenya Electronic Payment and Settlement System (KEPSS) to a new platform.
The regulator also announced that KEPSS has been upgraded to the Global Messaging Standard (ISO20022 Standard).
According to CBK, the new system is the latest international open standard for financial messaging that is being adopted globally.
The regulator disclosed that the migration of KEPSS to ISO20022 brings significant benefits, including faster settlement of payments and prevention of illicit transactions.