Visa Study Highlights Need for Strengthened Security to Boost Digital Payments Among SMEs in Kenya
A recent report by digital payments leader Visa has shed light on the security concerns faced by small and medium-sized enterprises (SMEs) in Kenya, particularly those that rely solely on cash transactions.
The ‘Value of Acceptance: Understanding the Digital Payment Landscape in Kenya,’ study reveals that an overwhelming 97% of cash-only SMEs perceive cash-related risks as a major concern, with robbery (62%) and embezzlement (52%) being the most significant threats.
Given these risks, the report notes that promoting secure digital payment options presents a viable solution for SMEs looking to mitigate security threats.
‘’Promoting secure digital payment options as a fundamentally safer way to conduct business can help mitigate these risks, fostering trust and further prompting a shift away from cash.’’ the report notes.
Digital transactions offer greater security by reducing the physical handling of cash, which is often a prime target for criminals. Additionally, electronic payments enhance financial transparency, reducing the likelihood of internal fraud and ensuring better tracking of transactions.
The Visa report emphasizes the importance of fostering trust among SMEs in Kenya regarding digital payment solutions. By increasing awareness and access to secure digital payment infrastructure, businesses can not only enhance their financial security but also improve operational efficiency and customer experience.
The report highlights a thriving digital payments ecosystem in Kenya, with 84% of surveyed SMEs recognizing that investing in payments technologies is crucial to drive business growth. This positive outlook is reinforced by the fact that 68% of SMEs currently accepting digital payments plan to invest further in payment technologies, including contactless solutions.
Encouraging SMEs to adopt digital payment solutions is crucial for Kenya’s economic landscape, where small businesses form the backbone of commerce. By addressing security concerns and reinforcing the benefits of digital transactions, the transition from cash dependency to a more secure, digital-driven economy can be accelerated.
“Kenya’s digital payments landscape is experiencing a dynamic growth, fueled by a rising preference for innovative payment methods and value-added services that provide enhanced security and streamline operations,” Chad Pollock, VP and General Manager, Visa East Africa says.
Visa’s ‘Value of Acceptance: Understanding the Digital Payment Landscape in Kenya’ report, conducted by 4Sight Research & Analytics, examines the current state of digital payment acceptance, exploring both opportunities and challenges. The findings are based on face-to-face interviews with 254 SME owners/managers who are key decision-makers with respect to day-to-day business decisions.
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