The service will allow Airtel customers to transfer money across borders as well as top up airtime and data seamlessly.
Customers will also be able to pay utility bills, buy goods and services and withdraw cash at selected Automated Teller Machines (ATM).
The first phase will kick off on November 1, 2014 in Kenya, Uganda, Tanzania and Rwanda after approval from the central banks in the countries.
The project is going to enable Bank of Africa (BOA) customers in Kenya and Uganda to send and receive money across the two countries.
Airtel, which runs operations in 20 countries across Asia and Africa, plans to roll out the service to other operations within a year.
Last week, MTN announced that starting next month, it will integrate its mobile money system of MTN Rwanda with that of MTN Uganda, allowing subscribers to send and receive money between the two countries.