Mobile money transfer services are fast edging out traditional money transfer systems particularly in Kenya, studies show. A new player has now entered the money transfer market combining the traditional money transfer and mobile money transfer services.
The Nation Group is expected to make an official statement on its new money transfer service NationHela soon. The service, which will mainly target Kenyans in the Diaspora, will be operated in partnership with Diamond Trust Bank (DTB).
“NationHela is a new, simpler and more convenient international money transfer service that allows you to receive money, from anywhere in the world, straight to your NationHela prepaid Visa card and mobile phone,” the company posted on its website.
The service will also have an option to have a transaction card or have money transferred to mobile phones. The company’s prepaid card will enable users to hold money. Although the card is not linked to any bank account, DTB will manage the funds.
NationHela proposes that this card is more safe and convenient as users will use what they have topped up only.
The new service will also eliminate the need to go to an agent to receive money as the money is sent directly to the card and withdrawals can be done through DTB ATMs. Users would as well transact with it and will receive an SMS alert each time there is a transaction on their account, according to the company.
NationHela will allow its users to send money through their portal in additing to enabling them to manage their accounts through the company’s website.
The NationHela card will be accepted at over 8,000 local Visa outlets in Kenya, Visa ATMs and over 30 million Visa outlets worldwide, Nation Media Group said.
NationHela is pegged to go into competition with M-Pesa, Kenyan born africa’s leading mobile money transfer, as well as other money services including Airtel Money, Yu Cash, Orange money, Western Union and Money Gram.
According to Communication Commission of Kenya’s (CCK’s) quarterly report, Kenya has nearly 19 million mobile money transfer subscribers. Total deposits from the sector were at KSh185 billion (US$ 2 billion). This is a huge amount for a quarter and hence shows room still exists for more competition.