Posta has invested Sh100 million in an electronic payment transmission system to shore up its revenue.
In a statement, Postal Corporation of Kenyaâ€™s post master-general, Dr Enock Kinara, said the platform, referred to as switch, would be linked to automated teller machines and point of sale terminals, a move that would see financial institutions cut costs by sharing a payment infrastructure.
â€œThe switch will mean more capacity and thus more transaction commissions,â€ he said adding that Kenya Commercial Bank, Credit Bank, ABC Bank and Faulu Kenya are already using the platform.
â€œWe have also been an agent of utility companies like Kenya Power, Nairobi City Water and Sewerage Company and DStv among others,â€ he said.
The corporation, which has seen its market share eroded by competition from the Internet and parcel delivery firms, seeks to create additional income stream.
Posta also hopes to use its vast network â€” over 600 outlets as a bargaining chip to ask companies to embrace its new platform.
â€œWeâ€™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 Sh400 million a year in commissions until the advent of M-Pesa.â€
During the quarter ending December 2012, PCK cut the number of its outlets by 56 from 690 due to stiff competition.