Since last year, there have been twice as many licensed payment service providers (PSPs), as more businesses try to capitalize on the rapid expansion of digital trade in the nation
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According to the Central Bank of Kenya’s most recent list of licensees, there were 17 firms as of the end of August up from nine at the end of 2021, with four receiving a permit just last month.
According to documents posted on the regulator’s website, CBK granted PSP licenses to Craft Silicon Limited, Virtual Pay International Limited, Direct Pay Limited, and Pesawise Services Limited in August.
They were added to the list of those permitted to provide the service along with Finserve Africa Limited, Web Tribe Limited, Cellulant Kenya Limited, and Kenya Airports Parking Services (KAPS) Limited.
PSPs are independent firms that assist individuals and business owners with processing and carrying out a variety of online payments, including those made through e-wallets, mobile cash transfers, credit and debit card payments, and e-banking.
The last ten years have seen a significant increase in the use of bank cards for shopping, indicating that consumers are becoming more accustomed to the convenience of this method of payment.
As more Kenyans embraced online shopping and decreased their reliance on cash as a means of containing the spread of the virus, the Covid-19 pandemic also improved the prospects for those providing digital payment services.
Due to the money being credited directly into accounts, using cards and digital payments helps businesses reduce their cash management expenses. Additionally, since a lack of actual cash does not prevent a sale from occurring, it simplifies accounting and leads to fewer “missed purchases.”
The biggest mobile money payment system in Kenya, M-Pesa from Safaricom, and Airtel Money Kenya Limited were the first to be registered as PSPs by CBK in 2016. Telkom Kenya then followed suit in 2018.
After the National Payments System (NPS) Act was passed in 2011 and the underlying regulations were published in 2014, which then required all providers to apply for the CBK licence, the nation moved to bring the payment service providers under tighter CBK oversight.
Due to the money being credited directly into accounts, using cards and digital payments helps businesses reduce their cash management expenses. Additionally, since a lack of actual cash does not prevent a sale from occurring, it simplifies accounting and leads to fewer “missed purchases.”
The biggest mobile money payment system in Kenya, M-Pesa from Safaricom, and Airtel Money Kenya Limited were the first to be registered as PSPs by CBK in 2016. Telkom Kenya then followed suit in 2018.
After the National Payments System (NPS) Act was passed in 2011 and the underlying regulations were published in 2014, which then required all providers to apply for the CBK licence, the nation moved to bring the payment service providers under tighter CBK oversight.