I&M and Mastercard are looking to ride on the growing uptake of credit cards in the country to market their new offering for the Kenyan market.
The firms have rolled out new credit card specifically for businesses and will be looking to grow their influence in the Sh300billion industry.
According to Mastercard head of business development Victor Ndlovu, credit cards usage is on the increase in Kenya and the new card will be looking to leverage on this.
Data from the Central Bank of Kenya shows that the economy recorded Sh114.8 billion worth of card payments in the first two months of 2023, up from Sh110.9 billion in the corresponding period in 2022.
“Over the past years’ credit card usage had been limited by rigid processes that need to be complied with when it comes to lending. However, through the mobile payments we have been able to penetrate segments that we couldn’t reach and that’s why we see credit cards uptake now gathering momentum,” said Ndlovu.
The business card proposition comprises the business credit card and the world business credit card targeted at business and corporate banking segments.
I&M Bank Kenya general manager, personal & business banking, Shameer Patel said that the card offers expense management tools and transaction alerts to enhance accountability, along with discounts on hotels, car rentals, and e-commerce platforms globally.
Companies can set and adjust spending limits for each card, ensuring controlled and accountable spending by employees.
The expense management tools simplify bookkeeping and petty cash management, while self-service features allow cardholders to view their card, check balances, and make payments conveniently.
The annual value of card transactions in the Kenya cards and payments market is estimated to be $2.3 billion (Sh300 billion) by the end of 2024 according to The Global Data.
With the country’s economy recovering from the 2023 global economic turmoil and expected growth in 2024, the card and payment market is poised to benefit from favorable economic conditions and will grow at a CAGR of more than 10 per cent during 2024-2028.
The use of payment cards is growing steadily in Kenya, supported by a rising banked population, government financial inclusion efforts, the availability of basic bank accounts, and the adoption of the agency banking model to reach remote areas.
The use of payment cards in Kenya remains low due to consumers’ preference for cash and mobile payments, coupled with limited acceptance of payment cards at merchant locations.
The widespread popularity and acceptance of mobile payment solutions such as M-PESA, hinders payment card growth in the country.