Digital payments company Visa has released a new report detailing growth opportunities for digital payments, particularly among small and medium-sized enterprises (SMEs) in Kenya.

According to the report, 40% of SMEs have adopted digital payments in the last two years. 

This momentum according to Visa is driven by the recognition that investments in payment technologies, including card payments alongside mobile and digital wallets, are essential for business growth. 

SMEs cite convenience (40%), cost savings (38%), and improved efficiency (37%) as key drivers for adopting digital payments.

“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 said.. 

“This shift presents a significant opportunity to boost both individual prosperity and broader economic development,’’ he added. 

While comfort with cash remains a barrier, the report reveals that nearly all digitally enabled SMEs (97%) still harbor cash-related security concerns. This presents a strong case for promoting digital payments as a safer and more efficient alternative. 

Need for Strengthened Security to Boost Digital Payments

Furthermore, there is significant demand for enhanced security measures among businesses already accepting digital payments, with 71% expressing a need for secure B2B payment solutions and 69% seeking guidance on payment security best practices. 

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. 

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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