HomeFin-TechKenya Payment Provider Set to Issue Quick Response (QR)Code

Kenya Payment Provider Set to Issue Quick Response (QR)Code

Kenya Banks, telcos and other payment service providers regulated by the Central Bank of Kenya (CBK) are set to issue Quick Response (QR) codes in a regulator-driven push to scale digital payments.
The CBK will issue the Kenya Quick Response Code Standard 2023 on Wednesday to guide the process of the QR code issuance by the payments agents to consumers and businesses accepting digital payments.
QR codes are an enhancement of standard barcodes and provide extra information, including data facilitating digital payments to mobile phones.
The codes will create convenience for both merchants and customers whereby customers will scan the QR codes to make payments to merchants who will in part provide the codes at payment points.
“Merchants will experience an easy onboarding process with low infrastructure costs, guaranteed funds and lower risk exposure, plus the potential for new sales and the ability to offer new services such as loyalty and rewards,” reads part of a summary of the QR code standards seen by the Business Daily.
Customers will have the option to pay using a QR at a merchant point of sale where the code is scan using customers’ smartphone applications provided by the payment service providers.
“The key benefits for a consumer are a simple non-cash alternative, greater protection and safety and an easy-to-use payment solution,” adds the summary.
Kenya Payment Provider Set to Issue Quick Response (QR)Code
The issuance of the QR code standards aligns with CBK’s National Payment Strategy, 2022-2025, which seeks to provide a framework to guide the current and future payment services.
“This is in line with its vision of ensuring a secure, fast, efficient and collaborative payments system that supports financial inclusion and innovations that benefit Kenyans,” the CBK states.
Last year, the CBK midwifed mobile-money interoperability as part of the payments transformation strategy in a deal which allowed Airtel and Telkom Kenya subscribers to pay for goods and services through Safaricom’s till number.
The CBK has further been pushing for the access of Safaricom’s pay-bill platform to rival networks.
The drive for interoperability and modern payment solutions comes in the backdrop of the rising prominence of digital payments supported by developments in fintech.
CBK data covering February 2023 shows total registered mobile money accounts stood at 74.04 million while active agents stood at 323,613.
Meanwhile, the value of mobile-money transactions in the month stood at Sh578.09 billion.
During the same month, the value of transactions handled by payment cards stood at Sh55.3 billion with the bulk of deals being facilitated through debit cards at ATMs.
Other modern channels available within the national payments landscape include electronic fund transfers and real-time gross settlements.
Traditional channels such as cheques have also undergone a transformation with an upgrade to the automated clearing house which has allowed for a shorter window to clear cheques and reduced errors.
Aniedi Ekwere
Aniedi Ekwere
Author/Consultant Find More Africa/AA Advisory, We provide betting reviews, thought leadership articles in the emerging markets, business development on products/ platforms in Africa with solid networking relationships with gaming operators in Africa, and Expertise in PR and marketing communication, and iGaming Consulting Services.

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