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Thursday, June 18, 2015

Mastercard plans Sh1bn lab in Nairobi, braces for war against Visa


Mastercard plans to set up its Sh1bn African
Mastercard plans to set up its Sh1bn African research lab in Nairobi later this year. FILE 
By LILIAN OCHIENG
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Mastercard plans to set up its Sh1bn African research lab in Nairobi later this year, showing its rising interest in the regions payments market.
The New York based firm has signed deals with Guaranty Trust Bank Kenya (GTBank) and Eco Bank. Last year it sealed deals with Equity Bank and Kenya Commercial Bank, a move that is seen as a warm up ahead of its Sh1 billion research lab.
The target is to circulate over 10 million cards in east Africa by 2018. Visa’s currently boasts of over 7.5 million Visa-branded cards in circulation in Kenya
With the leadership of Mr James Wainaina MasterCard’s vice-president and business head for East Africa, the target is to unseat Visa off its position in the market.
“MasterCard has been at the forefront of the fight against fraud for nearly 50 years, and electronic payments remain the safest way to pay.
As technology and payments methods evolve, we are focused on being at the forefront of the market,” said Mr Wainaina in a statement.
MOBILE MONEY
MasterCard said it chose Nairobi as an entry to the regional market because of Kenya’s global repute for piloting mobile money platforms and development of e-commerce and payment innovations such as M-Pesa.
Central Bank data state that Kenya has over 15,963 point of sale (POS) machines and about 1.3 million plastic cards in circulation including ATM cards, prepaid, debit and credit cards.
Payments made using plastic cards dipped nearly one-fifth last year, the first drop in five years, as swiping to pay bills took a beating from the buoyant mobile money industry.
The latest Central Bank of Kenya (CBK) data shows card payments plunged 17.4 per cent to Sh1.2 trillion last year compared to Sh1.5 trillion in 2013.

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