Absa Bank Kenya has rolled out a contactless payment solution with the launch of a new vertical card.
The move is aligned to the bank's growth and transformation strategy as it continues to digitise its services, with the aim of enhancing customer experience., management has said.
The new service enables customers to pay for goods and services by tapping their Absa Cards on a point of sale (POS) machine, after which the transaction is completed.
This solution allows for quick check out at retail outlets such as fuel stations, supermarkets and restaurants among others.
“delivering a differentiated customer experience and innovative solutions that bring possibilities to life for the customers community remains at the core of our growth, transformation and business strategy,"Absa managing director Jeremy Awori said.
The Covid-19 pandemic has fast-tracked the adoption of digital money systems thus making digital payments critical.
With the spread of the virus globally, and the necessary mitigation measures set by the government, use of digital payments has accelerated across the financial market in the country.
“In many ways, this move is expected to boost digital payment acceptance at small informal enterprises and merchant outlets across the country, while supporting consumers’ preference for contactless payments amidst social distancing and upholding set Covid-19 guidelines.” said Awori.
Other than speed and convenience, the Absa contactless cards use the same secure technology as traditional Chip and PIN.
A customer can perform a maximum of four contactless transactions without keying in their PIN per day, after which they will be automatically asked for a PIN for any other contactless transactions.
However, a PIN is required for any transactions above Sh2,000.
In addition, the contactless technology requires a cashier to initiate the payment on their system before a transaction on a customer card can take place.
The increase in digitization and consumer preference for innovative payment systems like mobile payments, are one of the most significant factors boosting the contactless payment market.
Additionally, with cash no longer being king, there is a niche to be filled with the growing appetite for contactless payment solutions that prevent cash handling.
The introduction of the contactless cards is the latest in a series of highly innovative technology advanced products that Absa plans to spearhead this year as it aligns to the new normal, Awori said.
