(Last Updated On: September 24, 2014)
Earlier this week Safaricom lost the battle to stop Equity Bank from rolling out their thin SIM card technology which will go head to head with their top product M-Pesa. Communication Authority of Kenya and Central Bank of Kenya both gave the green light to Equity Bank’s subsidiary Finserve Africa to roll out on a one year pilot basis. This will give regulators enough time to study and monitor the technology to see if it’s fully safe. If any vulnerabilities are found within the period, the service will be cut.
According to initial tests carried out no major complains especially the interception of traffic of the primary SIM card has been reported.
Safaricom plans to review its legal commitments to M-Pesa customers who are planning to use Equity Bank’s overlay SIM cards. This is so as to discourage its customers from trying out the new thin SIM technology. Safaricom currently has 19 million subscribers who actively use M-Pesa while Equity Bank has 9 million customers who will get the overlay thin SIM cards.
The telecommunications regulators has however made demands that Equity Bank should take the responsibility to compensate any mobile subscriber who will incur any losses as a result of the fraudulent use of the thin SIM technology.