- Vienna Payment Solutions has joined the Kenyan market by partnering with Interswitch East Africa.
- Kenya has been a regional powerhouse in digital payments, with the 2023 Economic survey placing the value of mobile money transfers at $47.6 billion.
- Interswitch East Africa Head of Technology, Naomi Wachira, says the solution marks a significant leap towards bridging gaps in the payment industry.
Austria-based firm Vienna Payment Solutions has entered the Kenyan market through a partnership with Interswitch East Africa, as the increasing popularity of mobile money continues to open up a new frontier for spirited competition in the space.
Following the partnership, the two companies introduced VIPASO, a payment solution comprising two applications: a consumer app and a merchant app. This initiative aims to enhance payment solutions for banks, players in the hospitality industry, on-the-go services, financial institutions, and retailers.
This comes when merchant payment platforms are projected to grow and take over card payments in the country.
Regional Leader in Mobile Money
Kenya has been a regional powerhouse in digital payments, with the 2023 Economic Survey placing the value of mobile money transfers at $47.6 billion.
According to the National Payments Strategy for 2022 to 2025 report by the Central Bank, Kenyans spend an average of $133.3 million using mobile money daily, indicating the critical role that mobile money has played in the country’s economy.
VIPASO CEO Matthias Horvath says the push to safeguard consumers using point-of-sale platforms has necessitated entry into the Kenyan market.
“We started VIPASO with a goal to make POS (point of sale) payments simple, reliable, safe and universal. The partnership with Interswitch marks significant progress towards achieving this goal,” said Horvath.
The value of agent mobile money transactions as a percentage of GDP in Kenya has increased from 23 per cent in 2010 to 70 per cent in the current environment.
This growth was boosted in August 2022 when merchant interoperability emerged, allowing mobile money platforms from different operators to interact through seamless transactions.
Interswitch East Africa (Kenya) country general manager Romana Rajput says the new application will seamlessly operate between a smartphone/feature phone for consumers and merchants alike or between a mobile phone and an Android Point of Sale terminal.
It utilizes Bluetooth low-energy connectivity and offers an alternative payment method for consumers when traditional card or mobile phone payments are inconvenient or hindered by unreliable internet connectivity.
“As a strategic response to evolving challenges, this collaboration not only fortifies the security of financial transactions but also underscores Interswitch East Africa (Kenya) Limited’s commitment to fostering digitalization and financial inclusion in Kenya”, said Rajput.
How Vienna Payment Solutions Will Boost Financial Inclusion
Interswitch East Africa Head of Technology Naomi Wachira says the solution marks a significant leap towards bridging gaps in the payment industry. It sets a new standard for secure, convenient, and inclusive financial transactions across East Africa.
“The integration of the Software Development Kit APIs signals a transformative shift away from manual input of merchant and customer details. This advancement not only eradicates the risks of errors but also paves the way for swift and error-free process, aligning with Interswitch’s commitment to efficiency and innovation in the evolving realm of payment solutions,” said Wachira. (https://illustrarch.com/)
Read also: Digital Payments in Africa redefining financial transactions
Mobile money platforms
The partnership represents a step-change in how both businesses address the market’s needs. It serves as a bridge that helps bring a new level of convenience, simplicity, and reach to the world of PoS (point of sale) payments.
Despite the relatively higher cost of telcos’ mobile money platforms, the fight for dominance of the mobile payments market took a twist after the CBK allowed Safaricom and Airtel to increase daily transaction limits on their mobile money platforms to $3,173.
This strengthened their capacity to compete with banks in the lucrative digital payments market.
Individuals and businesses can also hold $3,173 in telco wallets as mobile money evolves from person-to-person payments to an e-commerce tool. Users were previously allowed to hold up to $1,904.
