A new report by Visa has shed light on the increasing adoption of digital payments among small and medium-sized enterprises (SMEs) in Kenya, signaling a shift towards more efficient and secure transaction methods.
The study, titled Value of Acceptance: Understanding the Digital Payment Landscape in Kenya, found that 40% of SMEs have embraced digital payment solutions in the past two years. The adoption is largely driven by the recognition that investments in payment technologies—such as card payments, mobile wallets, and digital transactions—are critical for business growth.
According to the report, SMEs cite convenience (40%), cost savings (38%), and greater efficiency (37%) as the primary reasons for integrating digital payment solutions. However, while cash remains a familiar mode of transaction, security concerns persist, with nearly all digitally equipped SMEs (97%) expressing worries over cash-related risks.
Chad Pollock, Vice President and General Manager of Visa East Africa, highlighted the rapid evolution of Kenya’s digital payment landscape. “Kenya’s digital payments landscape is experiencing dynamic growth, fueled by a rising preference for innovative payment methods and value-added services that provide enhanced security and streamline operations,” he said. “This shift presents a significant opportunity to boost both individual prosperity and broader economic development.”
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Despite the growing adoption, the report identifies security as a key challenge for businesses already using digital payments. It found that 71% of SMEs seek secure business-to-business (B2B) payment solutions, while 69% require guidance on best practices for payment security. The research suggests that advancing secure digital payment options could help mitigate risks and build trust among businesses.
“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.
The study, conducted by 4Sight Research & Analytics, is based on face-to-face interviews with 254 SME owners and managers who are responsible for making daily business decisions. It provides a comprehensive analysis of Kenya’s digital payment ecosystem, identifying both opportunities and challenges in the sector.
