Digital payments platform Payless Africa enters Kenyan market
Guests cut a cake to mark the launch of Payless Africa in Nairobi on May 2, 2024.
What you need to know:
- New industry player says it is particularly targeting the youth.
- There has been a steady growth of digital payments providers.
Digital payments platform Payless Africa has launched its operations in Kenya.
The company’s founder and CEO Kev Muley said the platform will also provide digital banking services and enable users to save and invest.
“After taking time to sit down in focus groups, conduct research, and gather feedback from the youth, we found solid gaps in the current financial services and banking industry,” Mr Muley said at the platform’s launch on Thursday.
This comes at a time the growing shift by customers to digital payments has led to the growth of digital payments providers, leading to stiff competition for users.
This shift has been especially supported by Kenya’s high mobile phone penetration rate which stands at over 133 per cent, according to the Communications Authority of Kenya (CA).
Digital payments providers
Further, the usage of smartphones stands at 56.4 per cent, giving users more functionalities, particularly access to digital banking platforms.
According to Mr Muley, Payless will cut money transfer fees by up to 60 per cent compared to the existing leading digital payments providers.
It has also waived transaction fees for low-value transactions of less than Sh1,000.
"We are committed to challenging existing practices in the industry and championing financial empowerment for all individuals and businesses,” he said.
The use of real-time digital payments skyrocketed following the onset of the Covid-19 pandemic in March 2020 as the government introduced incentives to discourage the use of cash.
Cost efficient
“Customers are now expecting payments that are fast (in fact, instant), secure, affordable, versatile or adaptable to changing needs,” said the Central Bank of Kenya (CBK) in National Payments Strategy 2022-2025.
Digital payments now enable customers not only to send money but also pay for shopping, fare, utilities, healthcare, school fees among others.
According to Mr Muley, Payless is particularly targeting the youth, who make up the majority of Kenya’s population.
Across Africa, more than 60 per cent of the continent’s population is under the age of 25.
“The youth want products that align with their aspirations, cost efficient, transparent, variety, not rigid, and accommodating,” he said.
