68% of Kenyan SMEs Plan to Invest in Contactless Payment Technologies, Visa Report Finds

A new report by Visa, titled ‘Value of Acceptance: Understanding the Digital Payment Landscape in Kenya,’ has revealed a significant shift in the country’s small and medium-sized enterprises (SMEs) toward digital payment adoption. The study found that 68% of SMEs currently accepting digital payments plan to invest further in contactless and other payment technologies, reflecting a strong optimism for the future of digital transactions in Kenya.

Digital Transformation Key to Business Growth

The report highlights that 84% of SMEs believe investing in payment technologies is essential for growth, underscoring the increasing reliance on digital solutions to enhance business efficiency and customer convenience. This trend aligns with Kenya’s broader digital payments momentum, where 40% of SMEs have adopted digital transactions in the past two years.

Kenyan businesses are recognizing the advantages of digital payments beyond convenience. According to the study, SMEs are adopting digital payment systems for:

• Improved efficiency (37%)
• Cost savings (38%)
• Enhanced convenience for customers (40%)

Challenges of Cash-Only Businesses

Despite this progress, a significant portion of SMEs still rely solely on cash transactions. The report reveals that 56% of cash-only SMEs report losing customers due to a lack of digital payment options, while 91% face security risks such as theft and employee fraud. These challenges highlight the urgent need for greater adoption of secure, transparent, and efficient digital payment solutions.

The Future of Digital Payments in Kenya

With Kenya’s payment landscape rapidly evolving, the study found that nearly all SMEs using digital payments (97%) still express concerns over cash-related security issues. This presents a strong case for further digital transformation, particularly in secure B2B payment solutions, which 71% of businesses demand, alongside 69% seeking better guidance on payment security best practices.

Chad Pollock, Vice President and General Manager of Visa East Africa, emphasized the growing importance of digital transactions:

“Kenya’s digital payments landscape is experiencing dynamic growth, driven by a preference for innovative and secure payment solutions. This shift presents a significant opportunity to boost economic development and financial inclusion. Visa is committed to working with our partners to unlock the full potential of digital payments for all Kenyans.”

Economic Impact of Digital Payment Adoption

Beyond business benefits, digital payments contribute to broader economic growth. The transition from cash to digital transactions enhances financial inclusion, enabling access to credit, savings, and insurance. Research suggests that moving towards a digital economy can add 1-2% annual GDP growth, with a 1% increase in card usage generating an estimated $67 billion in annual global consumer spending.

Visa’s Role in Supporting Digital Adoption

Visa remains a key partner in driving Kenya’s digital transformation, offering innovative solutions such as Tap to Phone, Contactless Payments, and Click to Pay. Through partnerships with governments, financial institutions, and businesses, Visa aims to accelerate digital payment adoption, ultimately fostering a more secure and inclusive financial ecosystem.

As Kenya continues its transition towards a digital-first economy, the findings from Visa’s Value of Acceptance report underscore the pivotal role of payment technologies in shaping the future of SMEs and the broader business landscape.