Pesalink and Choice Bank Partner to Revolutionize Instant Payments in Kenya

Choice Microfinance Bank has integrated Pesalink’s instant payment infrastructure into its digital platforms, providing Kenyan SMEs and diaspora customers with real-time account-to-account transfers. This partnership highlights the growing necessity for interoperability in East Africa’s fintech landscape, as microfinance institutions increasingly adopt API-driven solutions to compete with traditional banks and mobile money providers.

What was announced

Choice Microfinance Bank Kenya Limited (Choice Bank) and Pesalink have signed a partnership to provide instant, affordable, and reliable payment options to the bank's customers. By integrating Pesalink’s infrastructure into Choice Bank’s digital suite—including its mobile app, iBank platform, and APIs—users can now perform seamless account-to-account transfers across the Kenyan banking ecosystem. The collaboration is specifically designed to support Choice Bank’s core demographics, which include Small and Medium Enterprises (SMEs), retail customers, and the Kenyan diaspora.

Choice Bank, which has been regulated by the Central Bank of Kenya as a nationally licensed deposit-taking microfinance bank since 2015, aims to use this integration to lower transaction friction and costs. Pesalink’s role in the deal involves providing an interoperable switch that connects over 80 financial institutions. This enables Choice Bank to offer real-time payments that are not tethered to a specific mobile wallet or single banking entity. The move aligns with broader trends in the 2024 African Banking Digital Transformation Report, which indicates that 76% of banks on the continent now prioritize digital transformation, with 60% having already digitized the majority of their operations. This shift is driving a wave of digital-first challenger banks that are reimagining customer experience through mobile-led platforms and embedded finance.

"Through our partnership with Pesalink, we are reinforcing our commitment to financial inclusion by giving our customers instant, affordable, and inclusive payment solutions. This is a step forward in our mission to empower livelihoods through innovative banking."

Bonface Isinta Ombui, CEO/MD of Choice Bank.

The companies involved

Choice Microfinance Bank, officially Choice Microfinance Bank Kenya Limited, is a nationally licensed deposit-taking microfinance bank that has been regulated by the Central Bank of Kenya since 2015. The bank has built a presence in the Kenyan market by focusing on Small and Medium Enterprises (SMEs), retail customers, and the diaspora community. Its strategy centers on digital-first banking, utilizing its iBank platform and mobile applications to provide financial services to underserved populations. Pesalink operates as an interoperable payment infrastructure within the Kenyan financial ecosystem. It functions as a real-time switching service that connects over 80 financial institutions, allowing for instant account-to-account transfers. Unlike single-provider mobile wallets, Pesalink acts as a neutral intermediary, facilitating transactions across a wide network of legacy banks and newer digital entrants. By providing a unified platform for instant payments, it aims to reduce transaction friction and lower costs for both consumers and businesses across the country.

What this means

This integration signals a shift in how microfinance institutions in Kenya view their role in the payments hierarchy. By adopting Pesalink’s interoperable framework, Choice Bank is effectively bypassing the traditional barriers that once separated micro-lenders from the broader commercial banking network. This move puts pressure on mobile money operators to justify their transaction fees, as instant bank-to-bank transfers become more accessible and cost-effective for SMEs. The industry must now consider whether the future of Kenyan fintech lies in proprietary wallets or in the kind of open, API-led infrastructure that Pesalink represents.