WHICH WAY FOR THE ELUSIVE MOBILE CASHLESS PAYMENTS

A cashless mobile fare payment for commuter vehicles is something that has continued to elude the stakeholders for a long time in Kenya. Every time the system is set to be launched something comes up that hinders the payments process. Recently Kenya’s own president launched a payments card dubbed 1963. Several Commuters Sacco’s just a tip of Kenya’s commuter industry had put pen to paper endorsing the cashless payments system. Commuters were set to start using the system to ease the problem of having to carry hard cash. The government together with Kenya’s no. 1 Mobile Network Operator Safaricom Ltd was set to gain millions in the deal.

Previously, a few months ago Equity bank had launched their card dubbed Bebapay powered by the Google wallet. Equity bank is Kenya’s biggest bank by customer base having a total of eight million customers. Recently Equity bank has been embroiled in a supremacy battle with Kenya’s top MNO Safaricom when Equity acquired an MVNO license from the communication Authority of Kenya. With the thin sim technology equity aims to offer mobile money transfer to its eight million customers. Of course Safaricom was not taki

ng this lying down. Already with seventeen million active mobile money users through the giant MPESA service Equity poses a threat to Safaricom. It is not a wonder then that Safaricom would launch its 1963 card just a few months after Equity bank’s Google Bebapay.

Another of Kenya’s top banks KCB is not being left behind. They have launched their own cashless payments cards dubbed PepeaCard. Apart from cashless mobile payments KCB’s Pepea card also offers other services like shopping, withdrawing cash and redeeming loyalty points.

With all these, what is causing a snag in cashless payments? For one most of the commuter operators are not ready. The drivers and their assistants insist on hard cash payments until a later date. They claim that the digital cashless payments system should be implemented gradually. Some commuters who are ready should start paying cashless using the cards while those not ready continue using hard cash.

The NTSA National Transport and Safety Authority should hold intensive campaigns of educating the stakeholders before setting the ground rules. Right now the NTSA say that failure to adhere to the new payments system will attract a fine of a hundred thousand shillings (One thousand dollars) or one year jail term

After all is said and done Cashless mobile payments is something that we cannot ignore. It will be like the proverbial ostrich burying head in sand. The rest of the world has embraced mobile payments and Kenya being a pioneer in mobile technology through MPESA should be in the front row in going cashless. Last year alone a total of two trillion shillings was transacted through MPESA.

Already MPESA is powering millions of payments through Lipa Na Mpesa paybill service daily. The stage is set for digital mobile payments……… Lets go digital, Lets go Mobile.