Customers of M-Pesa and MTN Mobile Money in East Africa will be able to transfer money to each other following an agreement between Vodafone Group and MTN Group to interconnect their mobile money services, according to a press release.

The companies said the interconnect collaboration between the region’s two biggest mobile money operators will enable convenient and affordable international remittances between M-Pesa customers in Kenya, Tanzania, Democratic Republic of Congo and Mozambique, and MTN Mobile Money customers in Uganda, Rwanda and Zambia.

Under the terms of their Memorandum of Understanding, MTN Group and Vodafone Group will also share best practices and work together to define the rules and standards of mobile-based remittances in Africa, according to the announcement.

"Our agreement with MTN to connect our mobile money wallets in East Africa is a fantastic example of cooperation and interoperability between competing mobile operators," Vodafone Director of Mobile Money Michael Joseph said in a statement. "By working together, we will deliver cheaper, faster money transfers, improving the lives of many people living in the seven countries involved."

MTN Group Head of Mobile Financial Services Serigne Dioum said: "After successful launches in Ivory Coast and Benin in West Africa, we are looking enthusiastically at the collaboration with Vodafone in East Africa. Together, we aim to build a scalable model that will accelerate remittance rollout across the continent."