PesaLink to Let Kenyans Send Money Using Phone Numbers Without Choosing a Bank

Kenya’s bank-owned PesaLink network is launching a portable payment identifier that will let customers receive money using only a phone number or alias, without revealing their bank or account details, while participating institutions sharply cut transfer fees to capture everyday transactions.

The upgrade moves PesaLink from a rigid, account-based system to an open, alias-based platform designed to lower barriers for retail payments and compete more directly with mobile money wallets.

Portable IDs Replace Bank Selection

The new PesaLink ID is a centralized alias system comparable to India’s Unified Payments Interface (UPI) or South Africa’s PayShap.

Previously, senders could use a recipient’s phone number but still had to select the correct bank. The portable ID maps a mobile number or unique alias directly to the recipient’s chosen account behind the scenes.

Funds can now be sent using only the phone number, with the network routing the money automatically regardless of which bank or Sacco holds the account.

Corporate and institutional users will receive separate dedicated PesaLink IDs linked to their commercial accounts, streamlining business-to-consumer and consumer-to-business payments.

Standardized, Lower Fees

Participating banks are introducing a simplified pricing structure aimed at micro-transactions:

• Transfers of KSh 1,000 and below are free.
• Amounts from KSh 1,001 up to the platform maximum of KSh 999,999 carry a flat fee of KSh 20 plus excise duty, replacing the previous tiered charges.

Major lenders including Diamond Trust Bank (DTB) and NCBA have already implemented the new rates.

Cross-Border Expansion and Open Access

PesaLink has also linked into the Pan-African Payment and Settlement System (PAPSS). As a technical connectivity provider, it connects more than 80 local banks, fintechs and Saccos to over 160 commercial banks across Africa.

The arrangement enables near-instant cross-border transfers that settle in local currencies and operate around the clock, reducing reliance on traditional correspondent banking routes.

In parallel, the newly launched PesaLink Fintech Programme opens the network’s APIs to independent fintechs, microfinance institutions and digital startups.

Third-party developers can now build custom settlement workflows, bulk payment systems and point-of-sale integrations on the PesaLink rail, moving beyond exclusive use by commercial banks.