Cardless ATM withdrawals in Kenya

M-PESA registered customers will be allowed to withdraw money from PesaPoint ATMs using their Safaricom phones. A new corresponding agreement was signed between Safaricom and PesaPoint. Under the deal customers will not need ATM cards which means that Kenya becomes the first country to deploy cardless transaction system at ATMs

With M-PESA customers of Safaricom can send money via mobile phones while independent ATM network of PesaPoint enables customers from several banks to withdraw funds. Users of the new service will be able to access a maximum of 20,000 Kenyan shillings (US$299) per withdrawal at any time of day.

In order to get access to the service customers will have to request a withdrawal form from the M-PESA menu in order to receive a one-time ATM authorization code, which will be used together with a Safaricom phone number. The PIN received for the withdrawal will expire after 2 hours which ensures the surety of the procedure.

Sidney Wachira, a Nairobi technology expert notes that the initiative spells doom for the banking sector as it eliminates any need for bank accounts, and banks should work hard to develop their own mobile banking platforms.