26 Jan African Payment Solutions: Kenya - Insights into Local Online Payment

Debit cards are increasingly being enabled for use online payment in Kenya.  Banks DTB and KCB are Mastercard licensees.  

Nakumatt, a large retailer in Kenya has had prepaid Mastercard debit cards in operation for two or more years.  Initially they were issued as loyalty cards, but because of the proliferation of M-Pesa as the dominating Kenyan alternative payment method, use of it for payment has been slow.  

Currently the highest fraud in Kenya is on card not present.  Despite this, there does not seem to be much pressure to go 3D Secure.  Most of the smaller banks don’t have 3D Secure.  They could get 3D Secure through Paynet which is a local switch.

Many of the local banks outsource their card services to companies like Paynet, who have recently been bought out by Nigerian payment company Interswitch.  Interwsitch are backed by Helios for their pan-African expansion.  

Paynet services the small financial institutions who can’t afford their own ATMs.  There are 120+ PesaPoint ATMs which are linked to each of these small Kenyan banks.

Most Kenyan banks do not support web interfaces for online payments.  Some are using MiGS on the back end and others are using South African integrators, and Bankserv for online acquiring and 3D Secure.

African Payment Solutions is integrated to key payment methods and companies in Kenya to give multinationals a soft landing and online acquiring for credit cards and alternative payment methods like M-Pesa in Kenya.  

Contact African Payment Solutions for Kenyan online payment solutions including: Kenyan eCommerce payments, Kenyan online credit card payments and alternative payment method M-Pesa.