Digital payments company Visa has unveiled a new report highlighting the rapid adoption of digital payment solutions among Kenyan small and medium-sized enterprises (SMEs) and the opportunities for further growth.
Digital Payment Adoption on the Rise
According to Visa’s Value of Acceptance: Understanding the Digital Payment Landscape in Kenya report, 40% of Kenyan SMEs have integrated digital payment solutions over the past two years. This surge is fueled by the recognition that investing in payment technologies—such as card payments, mobile wallets, and digital transactions—is essential for business expansion.
SMEs cite convenience (40%), cost savings (38%), and improved efficiency (37%) as the top reasons for adopting digital payments.
“Kenya’s digital payments landscape is evolving rapidly, driven by an increasing preference for innovative payment solutions that enhance security and streamline operations,” said Chad Pollock, VP & General Manager, Visa East Africa.
He further noted that this shift presents a major opportunity for economic growth, benefiting both individual businesses and the broader financial ecosystem.
Security Concerns: A Key Barrier to Cashless Adoption
Despite the growing shift towards digital transactions, cash dependency remains a challenge, largely due to entrenched habits and security concerns. The report found that 97% of digitally enabled SMEs still worry about cash-related security risks, strengthening the case for safer digital alternatives.
The Need for Enhanced Payment Security
Security remains a top priority for businesses embracing digital payments. The report highlights that:
✅ 71% of SMEs seek secure B2B payment solutions
✅ 69% want guidance on best practices for payment security
To address these challenges, the report recommends enhancing digital payment security measures to build trust and encourage further adoption.
“Promoting secure digital payment options as a safer way to conduct business can help mitigate risks, foster trust, and accelerate the shift away from cash,” the report states.
Visa’s Market Insights: Shaping the Future of Digital Transactions
Conducted by 4Sight Research & Analytics, the Visa study is based on face-to-face interviews with 254 SME decision-makers in Kenya. The findings provide crucial insights into the state of digital payments, the challenges businesses face, and the potential for future growth in the sector.
With security improvements and increased awareness, Kenya’s digital payments landscape is set for continued expansion, paving the way for a cashless, more efficient business environment.
