Payment by card in Kenya

Kenya’s e-commerce is embracing card payments, driven by initiatives like the National Payments Strategy 2022-2025. This strategy, launched by the Central Bank, aims to enhance electronic payments​​. Additionally, the KEPSA E-commerce Booster Program helps SMEs to leverage e-commerce for growth​​.

Cash, however, still dominates daily transactions. But, a shift is noticeable. Younger generations are increasingly opting for digital payments​​. As of now, cards are used for 28% of online purchases. The banked population surged from 56% to 79% between 2020 and 2022, indicating a robust move towards financial inclusivity​​.

The market favors international card schemes. Visa and Mastercard together capture the entire card market, sidelining any potential for local card schemes​​. This preference underscores the dominance of global networks in Kenya’s e-commerce space.

Payment by cash in Kenya

In Kenya, cash remains a vital part of e-commerce, despite the rise of digital payments. This enduring preference underlines the diverse payment landscape. Notably, platforms like Pesapal facilitate cash transactions by integrating mobile money and bank transfers, making them accessible for both individual consumers and businesses​.

Moreover, M-Pesa dominates the mobile money market, supporting a wide range of e-commerce transactions. It allows customers to use their mobile wallets for online purchases, showcasing its widespread acceptance across numerous e-commerce platforms​. Similarly, Popote Pay specializes in business payments, offering services that manage and automate payables, highlighting its utility for business financial operations​.

Furthermore, KopoKopo provides tailored solutions for businesses to handle payments efficiently. It supports routine large-scale transactions, demonstrating its critical role in facilitating commerce​. Platform like Lipisha also contributes by supporting multiple payment methods, ensuring flexibility and convenience for both online retailers and their customers​.

These services collectively enhance Kenya’s e-commerce framework, accommodating consumers who prefer cash transactions while leveraging modern digital solutions. This hybrid approach ensures inclusivity, catering to all segments of the Kenyan market.

Local actors : Pesapal, M-Pesa, Popote Pay, KopoKopo

Pesapal payment method m-pesa Logo Popote payment method KopoKopo payment method


Payment by bank transfer in Kenya

In 2024, bank transfer payments and instant payments are integral to Kenya’s e-commerce landscape, facilitating quick and efficient transactions. The Kenya Electronic Payment and Settlement System (KEPSS) plays a crucial role, enabling real-time gross settlement (RTGS) transactions that ensure immediate and final settlement of funds. This system supports not only local but also regional payments through the East African Payment System (EAPS) and the Regional Payment and Settlement System (REPSS), enhancing trade and economic integration within East Africa and the COMESA region.

PesaLink is another significant player, providing instant interbank money transfers. Available 24/7, PesaLink allows customers to conduct real-time transactions across various bank digital platforms, thereby promoting convenience and security in the financial landscape. This service has significantly broadened access to financial services, aligning with the government’s vision 2030 objectives​.

Additionally, Pesapal offers versatile online payment solutions that cater to the needs of Kenyan e-commerce businesses. This platform supports multiple payment options, including bank transfers, allowing businesses to receive payments efficiently and securely.

These platforms collectively contribute to a robust and secure payment infrastructure in Kenya. Instant payments are becoming the norm, driven by consumer and business demand for faster and more reliable transaction methods​.

Local actors : PesaLink, Pesapal, Equity Bank’s EazzyPay, KCB M-Pesa, Airtel Money

PesaLink payment method Pesapal payment method Equity payment method KCB payment method Airtel-Money logo


Payment by BNPL in Kenya

In Kenya, the Buy Now, Pay Later (BNPL) sector is experiencing rapid growth within the e-commerce landscape. The market is projected to reach $1.26 billion in 2024, demonstrating a significant annual growth rate of 16.7%​. By 2029, this value is expected to nearly double to $2.10 billion, driven by increased e-commerce penetration and evolving consumer payment preferences.

Key local players are pivotal in this expansion. M-KOPA, initially focused on solar products, now offers a wide range of consumer goods on BNPL terms​​. Lipa Later is another significant actor, enabling consumers to purchase various items and pay in flexible installments​. Aspira and Flexpay further contribute to this market, offering tailored installment plans for lifestyle and high-value products​.

These services meet a critical need for accessible financing solutions, aligning with the economic realities many Kenyans face. BNPL options offer an alternative to traditional credit, facilitating immediate purchases while spreading the financial impact over time. This flexibility is particularly appealing in a market where disposable income may be limited but the desire for consumer goods remains high​.

As e-commerce continues to grow, the integration of BNPL services is likely to expand, providing consumers with even more ways to finance their purchases conveniently. This trend reflects a broader shift towards digital solutions in financial services, where consumer convenience and accessibility are paramount​.

Local actors : M-KOPA, Lipa Later, Aspira, Flexpay, TandaPay,

M-Kopa payment method LipaLater logo Aspira payment method FlexPay logo


Payment by digital wallet and X-Pay in Kenya

In Kenya, the digital wallet scene is a cornerstone of the burgeoning e-commerce market. As of 2024, platforms like M-Pesa dominate, facilitating a wide array of online transactions. M-Pesa is particularly revered for its extensive integration across Kenyan e-commerce, allowing for seamless purchases and bill payments​.

Further enriching the landscape, Pesapal provides robust online payment solutions that support multiple payment methods. This flexibility caters to a diverse user base, ensuring merchants can accommodate various consumer preferences. Additionally, IntaSend enhances the digital wallet ecosystem with its innovative features, including cryptocurrency transactions, which cater to the tech-savvy demographic​.

Emerging players like Popote Pay and Airtel Money are also significant, each offering unique services that enhance business operations and consumer convenience. Popote Pay, for instance, excels in business expense management and integrates seamlessly with bank and mobile money accounts.

These platforms collectively push the envelope on digital transactions in Kenya, making e-commerce more accessible and secure. As technology evolves, these digital wallets are expected to play an even more crucial role in the economic landscape of Kenya.

Local actors : M-Pesa, Pesapal, IntaSend, Popote Pay, Pezesha (BtoB), Kopo Kopo (BtoB), BitPesa, T-Kash, Equitel, Airtel Money

m-pesa Logo Pesapal payment method Popote payment method Pezesha payment method KopoKopo payment method Equitel Logo Airtel-Money logo LipaPay payment method


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