Kenyan banks could reduce the cost of processing online card payments by 50% to 60% through increased use of domestic payment infrastructure, according to projections by Kenswitch executive IPP Wacera Maina.
The payment switch has partnered with Wibmo, a PayU-owned payments technology provider, to introduce technology that authenticates online card transactions and supports local payment processing for participating financial institutions.
The collaboration will use Wibmo’s EMV 3-D Secure authentication technology, which helps verify online card purchases through security checks such as one-time passwords, biometrics and mobile application approvals.
Maina said the anticipated reduction in processing costs could lower payment acceptance expenses for merchants and potentially benefit consumers. However, the companies have not disclosed existing processing fees or a revised pricing structure.
The technology builds on authentication standards already supported by Visa in Kenya, positioning domestic transaction processing and potential cost savings as key opportunities under the partnership.
The agreement follows Kenswitch’s September demonstration of a domestic payment card and its March partnership with Visa on payment infrastructure.
However, achieving the projected savings will depend on participating banks, card network requirements and successful technical integration. Any resulting reduction in consumer costs will also depend on whether banks and merchants pass the savings on to customers.
