Payments using electronic cards jump up 55pc

PHOTO | FILE The Chief Executive Officer of WebTribe JamboPay, Danson Muchemi during a past interview.  NATION

In Summary

• Principal secretary says State has only signed deals worth Sh327 billion for project
• This has seen electronic transactions increase rapidly between January and November 2013 compared to Sh907.8 billion in a similar period in 2012.
• As of November 2013, the number of electronic payment cards stood at 11.5 million, an increase of 8 per cent from 10.6 million cards as of November 2012.

By Nation Correspondent
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Transactions by electronic payment cards rose 55.5 per cent to Sh1.4 trillion in the 11-month period of last year.

Commercial banks have been aggressively promoting the use of electronic payment cards by consumers in financial transactions and in shopping.

This has seen electronic transactions increase rapidly between January and November 2013 compared to Sh907.8 billion in a similar period in 2012.

“Aggressive marketing by cards’ companies and a lot of consumer awareness by financial institutions have been key drivers to such growth in electronic payments,” said Mr Danson Muchemi, the chief executive of electronic payments firm JamboPay.

Financial analysts say the use of electronic payment cards has increased tremendously over cash transactions because they are more secure.





With about Sh70 billion being transacted through all channels in the financial services sector daily, there’s a huge potential for both electronic cards and mobile phone financial services.

As of November 2013, the number of electronic payment cards stood at 11.5 million, an increase of 8 per cent from 10.6 million cards as of November 2012.

Coupled with the rising use of mobile money, this has raised financial inclusion with 66.7 per cent of the adult population being roped into the formal financial system as of 2013, up from 27.4 per cent as of 2006.

The value of transactions made through mobile phones in a similar period increased by 23.7 per cent to more than Sh1.7 trillion – which is higher than the national budget for this financial year – from  Sh1.4 trillion in the 11 months to November 2012.

In the last year, Equity Bank has intensified its partnership with global electronic payment providers such as MasterCard, UnionPay, Visa, American Express, PayPal and with technology firm, Google, to tap into the growing electronic payments market.