Five payment Modes to watch in 2015

2015 is here with us and the payments industry is gearing itself for a major paradigm shift. What is important to note here is the industry depends heavily on behavioral changes of consumers. However if the players in the in the payments industry will come up with products that will create value to the consumers lives then this will be taken care of. I would say we have come a long way from what our ancestors used years back in terms of exchanging goods for goods. Recently here in Kenya a report showed that gold had been overtaken by land in terms of value. Our ancestors at one time used precious stones and jewelry as a mode of payment. In fact in some places this form of payment is still being used date. The transport industry has recently seen several cards entrants like Bebapay(Google)
My1963 and PEPEA (KCB)

CHEQUES

This form of payment will still continue to be used in 2015, but it is being overtaken by other forms of payment. Mention the word cheque anywhere and someone will mention the word bounce. Though governments have tried to regulate this form of payment and even reduce the time it takes before a cheque matures, still it is not very popular with many people.

CARDS

The CBK in its latest report says that by the fourth quarter of 2014n there were almost 14 million cards in Kenya. These include ATM cards, prepaid cards, debit cards, charge cards and POS machines and ATMs..This sounds like a huge number but apparently during the same time there was a drop in Cards preference in making payments. This might have been caused by security issues mostly from fraud. Visa master-card has invested heavily on advertisement to assure customer that its new Chip and pin system is secure enough and consumers can use it to pay for goods and services. Going into 2015 it will be interesting to watch how this goes.

MOBILE BANKING

In the year 2010 Michael Joseph who was then the Safaricom CEO predicted that banks would be non existence by 2015. Joseph said that banks as we know them in brick and mortar will cease and instead banks will be on peoples hands, in their mobile phones. This we have continued to see as mobile banking products that enable consumers go about their lives with not a worry of how they will pay their bills and buy goods. Mobile banking is therefore a payment option to watch for in the year 2015.

MOBILE MONEY

This is the most revolutionary of these payment options that I have listed. Mobile money is powered by mobile network operators like Safaricom, Airtel and Orange. Safaricom is the front runner in this payment mode. Lauching the MPESA product in 2007 they have since successfully followed it up with LIPA NA MPESA which is currently enjoying massive subscription. The other networks have Orange money, for Orange and Airtel money for Airtel. It is Safaricom's LIPA NA MPESA however that will be of interest to watch in 2015. Enjoying a 70% market share the LIPA NA MPESA payment mode draws its success from its widespread and deep rooted agents. With over 30 thousand merchants already on board, consumers can pay for anything from power bills, water bills subscription TV and hotel services just to mention a few. By the way it is growing LIPA NA MPESA looks to have an exlosive success in 2015.

CASH

However more the payment industry may hate Cash, it will still rear its head. It just wont go away. Good old cash continues to dominate, with billions of shillings exchanging hands everyday. Cash in itself is not safe to carry around and that is why come 2015 it might just see itself shelved in favor of mobile banking payments of LIPA NA MPESA