Kenyans among Africa’s top users of cashless payments
A new global survey shows that 27 per cent of Kenyans had wholly adopted the cashless system for settling bills. FILE
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27 per cent of Kenyans had wholly adopted the cashless system for settling bills, buying goods and paying for various services at restaurants, among others, with the number rising sharply due to reliable mobile phone cash transactions.
South Africa is ranked first at 43 per cent with Egypt (seven per cent) coming a distant third behind Kenya.
Kenya is ranked second in Africa among countries that have significantly adopted cashless payments system, according to the results of a new global survey.
The report released Tuesday dubbed The Cashless Journey shows that 27 per cent of Kenyans had wholly adopted the cashless system for settling bills, buying goods and paying for various services at restaurants, among others, with the number rising sharply due to reliable mobile phone cash transactions.
South Africa is ranked first at 43 per cent with Egypt (seven per cent) coming a distant third behind Kenya.
The report which covered 33 countries across the world observes that while other countries have been promoting use of credit cards and electronic fund transfers, Kenya’s case is unique following invention of Safaricom’s M-Pesa mobile phone-based money transfer system that has since been replicated by other providers.
The government has also embraced the technology services where billions of shillings in development funds are disbursed to beneficiaries via mobile phone money transfer. The same system is used to repay the loans advanced to various groups.
“What seems to be overlooked in the policy dialogue is that cash takes time to access, is riskier to carry, and costs a country up to 1.5 per cent of its gross domestic product,” said Peer Stein, director of access to finance advisory services at the International Finance Corporation.
“We cannot expect the journey from cash toward electronic payments to be completed overnight, yet driven by technological advances and public-private partnerships this trend has gathered significant momentum over the past few years.”
The study focuses on value of all consumer payments — Sh541.8trillion ($63 trillion) in total spend — including those that happen beyond retail point-of-sale in supermarkets, petrol stations and restaurants that accept card payments.
Safaricom has also introduced Lipa na M-Pesa, a mobile based cashless transaction between a buyer and seller.
The report observes that use of cashless services has tripled since 2011 when cash payments stood at Sh180.6trillion ($21 trillion), 34 per cent of total global consumer spend while cashless payments amounted to Sh361.2 trillion ($42 trillion).
Belgium leads the pack with an estimated 93 per cent of transactions being cashless, France (92 per cent), and Canada at 90 per cent followed by Sweden, Australia and the Netherland.
