E-payments offer flexibility for customers
Rapid technological growth has affected many sectors, including financing. Fintech solutions have promoted significant changes in the payment landscape in the last few decades.
The World Bank estimates that over two-thirds of the world’s population relies on digital payments for transactions. In 2022, mobile money accounts increased by 89 per cent - 1.6 billion worldwide, with Africa alone accounting for about 781 million.
Also known as electronic payments, digital payment transfers money from one account to another using a digital channel. Unlike cash or cheques, e-payments offer more flexibility and convenience to many customers, improving customer shopping experience.
Kenya has not been left behind in this revolution. Today, a significant number of SMEs have embraced digital payments. The main types of digital payments include mobile banking, banking cards and virtual cards, mobile wallets, and USSD.
One can pay matatu fares using M-Pesa or mobile wallets. What makes it even better is that you don’t really have to have a smartphone, because USSD is another great option, especially in places with limited internet access.
In a nutshell, digital payments can transform how customers and businesses interact.
— Cynthia Atuo is a graduate of Multimedia University
