At least seven out of ten business in Kenya have expressed confidence in digital payments systems despite an increase taxes, a new report has revealed.
An assessment contained in the report dubbed ‘The Future of Finance‘ listed ease of transacting and record keeping among key drivers of digital payments despite a five per cent increment in excise duty.
“Despite this tax increment, 21 million internet users and 59 million sim card subscribers pf the Kenyan demographic would still rely on mobile phones not only to communicate, but to make and receive payments,” the report by Dentsu Incorporated, a Japanese PR and international advertising company noted.
“Sixty-nine per cent of Kenyan businesses have expressed that digital payments – in the form of mobile money transfer, card payment, contactless cards, and bank transfer – have positively impacted their business, as they have made it easier to track expenses and revenues, and have enabled fast transactions and cut down the issue of shortfalls in returning change to customers,” the report published in August reads.
Dentsu CEO Samantha Kipuri added that the adoption of emerging frontiers by financial institutions has further enhanced the uptake of digital payment systems.
“Kenyan bankers seek greater functionality, cost effectiveness, ease of use and reliability in their payment methods, making room for new and emerging payment frontiers in the country such as PayPal which is favoured due to its speed, security and confidentiality.”
Dentsu cited trust, security, usefulness, choice and innovation crucial enablers of any reliable payment platforms in the world.
The parameters formed part of CBK national payment strategy launched in 2022 that looked to provide “a secure, fast, efficient and collaborative payments system that supports financial inclusion and innovations that benefit Kenyans.”
Dentsu’s report underscored the need to safeguard trust an security of mobile platforms to further enhance customer experience.
“As it looks to incorporate financial inclusivity and ingenuity to the financially embattled Kenyan citizens, it is worth noting that these pointers serve to facilitate the following agendas: the support of payment systems that meet the varied needs of consumers as it strives for financial inclusion, the enhancement of safety and security measures embedded in payment systems, the creation of customer-centric innovations that are anchored in collaboration and lastly, legal, and regulatory frameworks that function effectively across new payment frontiers,” the report affirmed.