•Whilst cash is still king in everyday transactions, the development and growth of mobile money has slowly increased the volume of cashless transactions.
•This has also been supported by the accelerated use of card payments.
KCB has launched a cashless payment service in partnership with Visa, in a new drive to push for contactless systems.
Dubbed “Tap Hapo Sawa” , the contactless -tap to pay service enables customers to enjoy a fast, easy and secure way to pay for goods and services.
All a customer needs to do is tap their Visa card on a KCB point of sale (POS) machine after which the transaction will be approved.
Other than speed and convenience, contactless cards are safe because they use protocols similar to encoding, replacing sensitive and private information such as the 16-digit account numbers with a unique digital identifier called the code.
The EMV chip generates a one-time encryption code, and thus prevents fraud and counterfeiting attempts.
“We are truly excited to roll out Visa’s Contactless -tap to Pay service in Kenya. KCB has been at the forefront of digitizing transactions so as to offer customers seamless services,"said Angela Mwirigi, KCB Director, Digital Financial Services.
With the global outbreak of Covid-19 and the necessary containment measures, use of digital payments has accelerated, Mwirigi said, adding the bank is encouraging its customers to use contactless methods of payment.
"We are committed to providing robust fintech solutions to customers to not only improve their experience, but also as our strategy in fighting against the Covid-19 crisis,” she affirmed.
Visa has put in place several resources in place to familiarize consumers with the security features provided by contactless payment technologies and e-commerce to keep them safe while paying with their cards.
“Across the globe we’re settling into a new normal, an immediate acceleration of digital shopping, which has dramatically changed the way we live, work and buy. It has impacted how we spend, send and use money, with a tsunami-like ripple effect on many parts of the global economy,” said Corine Mbiaketcha, Vice President and General Manager for Visa in Kenya.
The proposition is part of the Bank’s digital finance proposition.
Transactional activities continue to shift away from branches, with tech-backed non-branch transactions— mobile, agency banking, point of sale terminals and ATMs, standing at 98 per cent of total volumes, compared to two per cent handled at the branches.
KCB has platforms such as VOOMA (a digital platform for lending, savings and payments), MobiGrow (an agribusiness fintech platform), Mobi Chama (a digital service for investment groups) and Jaza Duka (a retailers’ cashless platform) among others.
This is in addition to KCB M-Pesa (with 16 million customers) and KCB Mobile banking which offers extensive digital services to the bank’s customer base across the region of Eastern Africa.
Kenya is a leader on the African continent in terms of adopting digital payments. Whilst cash is still king when it comes to everyday transactions, the development and growth of mobile money has slowly increased the volume of cashless transactions.
This has also been supported by the accelerated use of card payments.