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Economy

Card payments rise 32 percent

ATM cards
The use of cards is focused to see displacement of cash while making payments safe. FILE PHOTO | NMG 

The use of cards for payments defied the mobile onslaught to grow by 32 percent last year compared to 2018, new data shows.

Central Bank of Kenya (CBK) data shows the value of card transactions in 11 months of 2019 through prepaid cards, charge cards, credit and debit cards, and through Point of Sale (POS) machines stood at Sh641.13 billion.

CBK did not capture the transactions made in May.

Even so, the payments at retail locations represented a 32 percent growth from Sh484.81 billion recorded in 12 months to December 2018.

The number of transaction in the period under review stood at 78.57 million while 100.53 deals were made in 2018.

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Visa country manager Victor Ndlovu tied this to increased use of Visa bank cards in the e-commerce space and spreading to the face-to–face transactions in grocery stores, fuel stations and retail sectors due to convenience.

“The use of cards is focused to see displacement of cash while making payments safe. Visa also ran campaigns during the year,” Mr Ndlovu said.

However, online shopping has become more prone to fraud with concerns of security of cards headlined by cyber security attacks last year.

This led to the introduction of Visa Consumer Authentication Service that Mr Ndlovu said authenticates users and serves as security for risky transactions.

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