The Kenya digital payments landscape is experiencing rapid growth, motivated by the growing demand for digital transactions and the growing recognition of SMEs.
A recent visa survey reveals an obvious positive trend in the high satisfaction rate (69%) among SMEs already accepting digital payments, which particularly appreciate the risk of fraud and increased transparency.https: //www.tekedia.com/ 40-OF-KENYAN -SME… and transparency /
This increase in digital payment reflects a growing consciousness of Kenyan SMEs of vulnerabilities inherent in traditional financial practices. Although Cash remains a practical means of transactions due to simplicity and large acceptance, dependence on cash transactions exposes companies to risks ranging from theft and poor placement to complex fraud regimes.
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On the other hand, financial technology platforms offer a robust shield, offering a digital path that improves responsibility and reduces the potential for illicit activities. The transition to digital solutions is even more obvious in the survey, because 40% of SMEs already use financial technology, and the major majority (68%) plan to invest in new digital payment technologies.
Almost one (24%) (24%) SMEs in cash plans to acquire POS systems, and 52%of SMEs in cash intends to invest in a new payment Technology overall. This, combined with the 61% of existing digital payment users who plan to invest more, in particular in card payments (45%), indicates significant future expansion.
Fintech adoption meitants in Kenyan SMEs
Improved security
Cybersecurity threats and financial fraud are important concerns for SMEs. Fintech solutions offer advanced security features such as encryption, multi-factory authentication and real-time fraud detection, ensuring that companies can make safe transactions.
Transparency of transactions
Fintech platforms offer real -time monitoring, digital payment records and automated accounting solutions that reduce human errors and fraud. This transparency helps companies maintain specific financial files and promote confidence with stakeholders, including customers and investors.
Access to digital payments
With the rise of mobile silver platforms like M-PESA, SMEs move away from cash transactions. Digital payments not only reduce the risks associated with cash management, but also rationalize financial operations, which makes commercial transactions more effective.
Easy access to credit
Traditional banking systems often have strict loan criteria that exclude many SMEs. Fintech companies provide alternative credit rating models that assess companies according to the history of transactions and cash flows, which facilitates access to SMEs.
Digital payments stimulating the growth of SMEs in Kenya
Digital payments are crucial for SMEs Digitization, offering many advantages to Kenya companies. These include an increase in revenues thanks to access to wider and more and more without species; Improved customer satisfaction due to faster and more practical payment options; and reduces operational risks by minimizing the manipulation of species and the associated risks. In addition, digital transaction records provide precious data that can facilitate access to financing, empowerment of growth!
Kenyan SMEs already recognize The strategic importance of digital payments, 77% of SMEs allowed digitally suitable that adoption will stimulate growth. This is also underlined by the high demand for secure B2B solutions (71%) and advice on best practices (69%) among SMEs already accepting digital payments. It is crucial to encourage additional investment by presenting successes and tangible rols.
In addition, digital payments are a gateway to a broader financial inclusion, representative A first crucial step in the formal financier System for non -banished, allowing access to services such as funding and government assistance. Transaction accounts increase the probability of using other financial services, such as savings, credit and insurance, empowerment of individuals and businesses. This is particularly relevant since 40% of SMEs currently use financial technology, highlighting the need for broader digital inclusion.
Finally, digital payments are a powerful Economic growth engine. Research reveals that the transition of cash payments to digital payments can generate annual GDP gains From 1% to 2%. On a global scale, increased payment The use of the card (debit, credit and prepaid) added $ 245 billion to real GDP between 2015 and 2019, in 70 countries and Territories studied, each 1% increase in the card The use was in correlation with an average annual increase of approximately $ 67 billion consumption. In addition, only 5% increase in digital payments per year for five consecutive years could reduce the Informal saving from 11 to 13% and increase the tax income.
