Bharti Airtel has announced the launch of cross-border mobile money transfer for its customers in Kenya, Rwanda and Uganda, reducing the cost to 2 per cent of the amount sent from the previous 10 per cent.

It will cost Ksh200 ($2.3) to send Ksh10,000 ($115) from Kenya to Uganda using Airtel Money, down from the current Ksh1,000 ($11.5). The new charges are close to Western Union and MoneyGram’s — Ksh171 to send Ksh10,000 ($115) from Kenya to Uganda.

The service will allow Airtel customers to transfer money across borders as well as top up airtime and data seamlessly. It will also allow customers to pay utility bills, buy goods and services and withdraw cash at selected automated teller machines.

“This is a first-in-market initiative across Africa and will enable Airtel Money customers to send, receive and withdraw money from their Airtel Money wallets,” Chidi Okpala, director and Airtel Money head, said in a statement.

While announcing the launch of the service on the sidelines of the East African Business Summit in Kigali, Mr Okpala, “You will now be able to transfer money seamlessly in Rwanda, Tanzania, Kenya and Uganda starting November 1,” Mr Okpala said.

The telecommunications service provider said the pilot phase will kick off on November 1, in Kenya, Uganda, Tanzania and Rwanda after approval from the central banks in the four countries.

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The pilot project will also enable Bank of Africa customers in Kenya and Uganda to send and receive money across the two countries. Airtel, which runs operations in 20 countries across Asia and Africa, plans to roll out the service to other areas within a year.

“This is a key milestone for Airtel Money customers because a big virtual barrier has been removed and our customers will be able to transact with ease across national borders,” Okpala said. “The service will extend convenience by way of cost efficiency and reach while facilitating remittances and small trades within East Africa.”

The Airtel official said the cross-border money transfer service is another step towards deepening mobile commerce and financial participation in the region.

“Mobile money remains a key element in boosting financial inclusion in East Africa. This is also a confirmation of the broader commitment of the governments of Rwanda, Uganda, Kenya and Tanzania in improving trade and commerce activities within the region,” he said.

Mobile commerce is gaining importance in the region for its huge role in speeding up transactions, saving time and money for people and businesses.