[kictanet] Press release: Posta goes digital with Ksh100 million switch

[Andrea Bohnstedt]

Maybe interesting.
Many regards, Andrea

*NEWS RELEASE*

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*Posta goes digital with Ksh100 million switch*

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*The system will enable Posta automate its payment services*

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*April, 25, 2013:* The Postal Corporation of Kenya (Posta) has invested
Ksh100 million in rolling out national payment switch that will see
financial institutions share payment infrastructure and capitalise on PCK’s
expansive network of over 600 offices that will offer Agency services.   ***
*

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Besides linking banks’ Automated Teller Machines (ATMs) and Point of Sale
(POS) terminals in order to avoid the duplication of expensive
infrastructure resources, the switch will enable Posta automate its payment
services. ****

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“KCB, Credit Bank, ABC Bank and Faulu Kenya are already on board. We have
also been an agent of utility companies like Kenya Power, Nairobi City
Water and Sewerage Company and DStv among others, the Switch will mean more
capacity and thus more transaction commissions,” says Dr. Enock Kinara, the
Post Master General.               ****

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The switch which will go live before in the next few weeks will see Posta
automate all its transactions, including back office reconciliation of
transactions which is presently manual. Posta, on behalf of the Government,
remits about Ksh500 million in cash every two months to about 350,000
beneficiaries; mainly orphans, pensioners and widows. ****

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“Instead of having our customers lining up under heavy security to collect
cash, now these 350,000 individuals will just need a PostaPay card which
they can swipe at any of our outlets to withdraw their dues” says Titus
Juma, the Posta General Manager, Financial and Agency Services.     ****

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The switch, said Dr. Kinara, would enable Posta leverage on technology to
accelerate financial inclusion of Kenyans in far flung regions which remain
inaccessible by conventional banking channels. ****

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He said the investment in a switch “is in line with the spirit of touching
lives and that of the Universal Service Obligation of offering citizens
basic communication as mandated by the UN.” ****

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“The technology offers an array of infinite transaction possibilities, from
mobile wallets, credit and debit cards to USSD,” explained Dr. Kinara. USSD
is a Global System for Mobile (GSM) communication technology that is used
to send text between a mobile phone and an application program in the
network. ****

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USSD can be used for WAP browsing, prepaid callback service, mobile-money
services, location-based content services and menu-based information
services. Posta is equally seeking approval from the Communication
Commission of Kenya to provide wireless internet service in 93 offices
country, 22 of which will be opened. ****

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Posta presently offers mail, courier financial and agency services. As the
public postal licensee, the Corporation however still offers post office
letter boxes service, issuance of postage stamps and conveyance of letters
up to 350 grammes exclusively.****

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Dr. Kinara said the investment was part of re-engineering its operations to
compete in dynamic business ecosystem where disruptive technologies are
consistently necessitating continued business innovation.  ****

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“We’ve seen products like M-Pesa, the mobile cash transfer service, change
the way we transact. For instance our electronic funds transfer service,
PostaPay was very successful raking in about Ksh400 million a year in
commissions until the advent of M-Pesa.” ****

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The new service, said Dr. Kinara, is complaint with the Payment Card
Industry Data Security Standard which is an information security standard
for organizations that handle cardholder information for the major debit,
credit, prepaid, e-purse, ATM, and POS cards.****

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The standard was created to increase controls around cardholder data to
reduce credit card fraud via its exposure. Dr. Kinara said this is
consistent with Posta’s mission “to deliver superior financial,
distribution and communication solutions” to its customers, while creating
value for stakeholders.****

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Ends………………****

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*For more information, please contact Nick Thiong’o of Redhouse Public
Relations via cell phone: 0723 988944 or email: nick.thiongo at redhouseke.com
*

* *

Kind Regards,****

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Nick Thiong’o****

Senior Account Manager****

Redhouse Public Relations****

P.O. Box 43037-00100****

T: 2369999  F:2390999****

M: 0723 988 944****

Hanover Suite, 2nd Floor, 14 Riverside Drive****

Nairobi, Kenya****

Twitter: @NickThiongo <https://twitter.com/NickThiongo>****

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-- 
Andrea Bohnstedt <http://ke.linkedin.com/in/andreabohnstedt>
Publisher

www.ratio-magazine.com
www.africa-assets.com
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