NAIROBI: Mobile phone fraud in Kenya has rocketed since the introduction of mobile payments such as M-pesa, Airtel Money, Orange Money and Yu cash. As a result, many individuals and businesses are slow to accepting mobile payments. “The fear of losses through fraudulent transactions has made companies hesitant to take up mobile phone payment systems” stated a survey by a consultancy firm, Financial Sector Deepening (FSD). Ignacio Mas, an independent consultant with Bankable Frontier Associates stated that mobile money is the backbone where people can access other financial products. Currently businesses prefer cash or cheque deposits for their transactions and Real Time Gross Settlement (RTGS) system for larger value transactions, the study found. In a previous interview with the Business Daily, former Safaricom CEO Michael Joseph said that the company was aiming at migrating M-Pesa to a new platform that would allow for the incorporation of its services with those of other vendors and enable clients to make instant payments. In Kenya, mobile money transfer is an important aspect for the economy but there are different perspectives to that. For example, a study conducted by FSD stated that: “There is widespread belief that mobile money operators automatically reverse such transactions, without even checking with or informing the original recipient of the funds.”
