Digital commerce enabler, Network International, has officially entered the Kenyan market with a strategic launch of its in-person payment solutions. The company, which has already established itself as a key player in digital payments across the Middle East and Africa, is aiming to revolutionize Kenya’s payment systems, focusing particularly on in-store transactions. The move marks a significant milestone in Network International’s growth strategy as it positions Kenya as a pivotal hub for its expansion into the wider East African region.
The State of Kenya’s Payment Landscape
Kenya has long been a leader in mobile payments, driven by the success of platforms like M-Pesa, which transformed how individuals and businesses conduct transactions. However, while mobile money has dominated the digital payment space, there remains a substantial gap in the adoption of in-person payment methods such as point-of-sale (POS) systems.
According to the Kenya National Bureau of Statistics, the country boasts over 7.4 million registered micro, small, and medium-sized enterprises (MSMEs). Despite this, only around 55,000 POS machines are currently in use, indicating a significant disparity between the number of businesses and the availability of in-store payment systems. This gap presents an immense opportunity for growth, and Network International aims to bridge this divide by providing accessible, cost-effective payment solutions to Kenyan businesses.
Addressing Market Needs with Cost-Effective Solutions
Network International’s entry into the Kenyan market is spearheaded by its East Africa Acquiring Regional Managing Director, Judy Waruiru, who emphasized the company’s commitment to empowering businesses through innovative payment solutions. “We are introducing our point-of-sale (POS) solutions as part of our strategy to enter the in-person payments market in Kenya, a key hub for East Africa,” Waruiru stated. The company’s approach includes offering merchants an array of cost-effective solutions, from traditional card payments to QR code-enabled transactions.
One of the standout features of Network International’s offering is its emphasis on QR code payments. QR codes have gained popularity worldwide due to their simplicity and ease of use, enabling businesses to accept payments from customers using nothing more than a smartphone. In Kenya, where smartphone penetration is relatively high, this technology is expected to foster greater card payment adoption and provide merchants with an accessible alternative to traditional POS systems.
By introducing these affordable solutions, Network International aims to enhance the inclusivity of digital payments in Kenya, ensuring that no customer is left behind. This inclusivity is crucial, especially in the context of the vast number of MSMEs that still rely on cash transactions due to the perceived complexity or cost of adopting digital payment systems.
Supporting Kenya’s SMEs and Unlocking Growth Potential
The MSME sector is the backbone of Kenya’s economy, contributing significantly to employment and GDP. However, many of these businesses face challenges in accessing efficient payment solutions, which can limit their potential for growth. Network International’s in-person payment solutions are designed to help small businesses streamline their payment processes, improve customer experiences, and ultimately increase their revenue streams.
For merchants, especially those operating in rural or underserved areas, the availability of QR code payments is expected to be a game-changer. Unlike traditional POS systems, which require specialized hardware and maintenance, QR code payments can be easily integrated into existing business operations with minimal upfront investment. This flexibility allows even the smallest businesses to participate in the digital economy, increasing their competitiveness and opening up new avenues for growth.
Moreover, by enabling businesses to accept card payments through cost-effective solutions, Network International hopes to drive greater adoption of digital payments across the country. As more businesses adopt these systems, the benefits are expected to ripple throughout the economy, creating a more efficient and inclusive payment ecosystem that supports growth and innovation.
The Shift from Cash to Digital Payments in Africa
While digital payments are becoming more widespread globally, cash remains a dominant form of transaction in many parts of Africa, including Kenya. A 2020 report from the International Finance Corporation (IFC) estimated that 90% of retail transactions in sub-Saharan Africa are still conducted in cash. This reliance on cash creates inefficiencies, hampers financial inclusion, and limits the ability of businesses to scale.
Network International’s entry into the Kenyan market comes at a time when the continent is experiencing a broader shift towards digital payments. The COVID-19 pandemic accelerated this trend, with many consumers and businesses turning to contactless payment methods to reduce physical contact. Governments across Africa, including Kenya, have also been encouraging the use of digital payments as part of broader efforts to modernize financial systems and enhance transparency.
In this context, Network International’s focus on in-person payment solutions is both timely and strategic. By providing affordable and accessible payment systems, the company is well-positioned to capitalize on the growing demand for digital payment options in Kenya and beyond.
A Strategic Focus on the Future of Payments in Kenya
Kenya’s digital economy is rapidly evolving, and as the country looks to further modernize its financial infrastructure, in-person payment solutions will play a critical role. Network International’s approach aligns with the government’s vision of creating a cash-lite economy, where digital transactions become the norm, and businesses of all sizes have access to the tools they need to thrive.
Network International’s strategy also reflects the broader global trend toward fintech innovation. Across the world, traditional payment methods are being replaced by more agile, technology-driven solutions that cater to the needs of businesses and consumers alike. The company’s entrance into the Kenyan market signifies its belief in the country’s potential to become a leader in this space.
In addition to its in-person payment solutions, Network International plans to introduce a range of other services that will further support businesses in Kenya. These include fraud detection and prevention tools, as well as analytics platforms that allow merchants to gain insights into their customers’ buying habits and preferences. These offerings will enable businesses to make more informed decisions, optimize their operations, and better serve their customers.
Empowering Local Businesses with Digital Solutions
The benefits of adopting digital payment systems extend beyond simply improving transaction efficiency. By embracing Network International’s solutions, Kenyan businesses will be better equipped to compete in an increasingly digital world. The company’s offerings will empower businesses to reach new customers, streamline their operations, and ultimately boost their bottom line.
For many small and medium-sized enterprises, the ability to accept digital payments is no longer a luxury but a necessity. Consumers are increasingly expecting businesses to offer a variety of payment options, and those that fail to do so risk losing out on valuable customers. Network International’s commitment to providing accessible, cost-effective solutions ensures that businesses of all sizes can stay competitive in this evolving landscape.
Conclusion: A Transformative Moment for Kenya’s Payment Ecosystem
Network International’s launch of its in-person payment solutions in Kenya marks a transformative moment for the country’s payment ecosystem. By addressing the gap in in-store payment systems and offering innovative, cost-effective solutions such as QR code payments, the company is set to play a pivotal role in the digitalization of Kenya’s economy.
As more businesses adopt these systems, the impact on Kenya’s broader economic landscape will be profound. Increased payment efficiency, greater financial inclusion, and enhanced opportunities for growth will not only benefit individual businesses but also contribute to the overall development of the country’s digital economy. Network International’s entrance into the Kenyan market is poised to accelerate this transition, driving Kenya closer to becoming a cash-lite, digitally empowered nation.
