Visa, in partnership with 4Sight Research and Analytics, has unveiled a new report dubbed Value of Acceptance, under the theme of understanding the digital payment landscape in Kenya.

The report explores how digital payments are driving Small and Medium Enterprises (SME) growth, enhancing operational efficiency, improving security and accelerating Kenya’s transition to a cashless economy.

According to the Visa Vice President and General Manager for East Africa Chad Pollock, the report highlights that 58 per cent of digital transactions in Kenya are paid for with mobile money, making it the dominant payment method due to its accessibility, lower costs and ease of use.

However, he noted that card payments were steadily gaining traction as financial institutions and merchants invest in modern payment infrastructure.

Speaking during the launch Senior Director at 4Sight Research & Analytics Caroline Mwangi pointed out that digital payments not only offered business advantages but also improved the personal wellbeing of SME owners.

“Beyond efficiency, digital payments reduce the burden of handling cash. Our research shows that 38 per cent of SME owners report greater time flexibility, while 32 per cent experience reduced stress due to managing fewer cash transactions,” disclosed Mwangi.

She said the study revealed that 40 per cent of SMEs have integrated digital payments in the past two years, signalling a strong shift towards financial technology adoption in the sector. Despite the growing momentum, the director said small merchants remained hesitant to fully embrace digital payments.

“The report identifies several key barriers including cost and security concerns, taxation fears and technical difficulties,” she highlighted.

During the plenary session, Visa and key industry stakeholders reaffirmed their commitment to driving financial inclusion in Kenya with efforts to expand digital payment solutions including lowering transaction costs where financial institutions are working to reduce fees and provide more affordable solutions for SMEs.

Others include enhancing digital security where Visa is investing in fraud prevention technologies, secure transaction authorization tools and expanding contactless payments where the rise of tap-to-pay solutions, digital wallets, and mobile-linked card payments are making digital transactions more seamless and convenient.

Additionally, the adoption of POS systems, QR code payments and mobile-based card solutions were also helping to bridge the gap between mobile money and card transactions, ensuring that businesses could cater for a wider customer base.

As digital payment solutions become more accessible and widely accepted, industry leaders are confident Kenya is on the path to a more secure, transparent and efficient financial ecosystem.

In her presentation, Mwangi noted that with 52 per cent of cash-only merchants planning to adopt digital payment solutions and 68 per cent of existing digital merchants looking to invest in newer technologies, the shift to a digital-first economy is inevitable.

Director for Merchant Sales and Acquiring at Visa Card John Muriithi posited that the long-term benefits of digital payments extended beyond just convenience.

“They enable SMEs to track transactions, access credit, and even attract investment – ultimately fostering economic growth in Kenya,” explained Muriithi.

As Kenya leads Africa in financial innovation, the message is clear that digital payments are not limited in time as they constantly transform businesses, empower entrepreneurs, and shape a stronger economy.

• A Tell / KNA report / Gabriel Mwangi and Venesa Muhati