The National Payment Systems (NPS) play an essential role in the smooth functioning of any economy, and any inefficiencies in the ecosystem can have cascading effects throughout the economy. Last week, Pesapal was honored to be among the payment stakeholders invited to launch the National Payment Strategy 2022-2025 by the Central Bank of Kenya (CBK).
The unveiling of this Strategy was a culmination of market analysis of the payments landscape in Kenya by the CBK and involved stakeholder engagement. It was developed through a consultative process involving contribution and feedback from the payments industry and other stakeholders.
The NPS Strategy is anchored on the vision of a secure, fast, efficient and collaborative payments system that supports financial inclusion and innovations that benefit Kenyans. These are the fabrics of the payment businesses today and are critical in fostering customer-centric innovation and the journey to a cashlite society.
The payments world is changing so rapidly that it can be hard for businesses to keep their finger on the pulse. There are more ways to pay than ever before; from card and contactless payments to mobile and e-commerce, and if an enterprise offers cash-only services, it is at a very real risk of losing customers.
The Strategy is also anchored on five core principles— trust, security, usefulness, choice, and innovation— and four strategic objectives guiding the implementation process.
The Strategy has set out the following aims for the next five years:
Given the rapid changes in the payments sector locally, regionally and globally, and the need to support the industry on various initiatives, CBK seeks to fast-track implementation of priority initiatives to support achievement of the Strategic Objectives.
Although the Kenya Electronic Payment and Settlement System (KEPPS) launched in 2005 and the National Payment Systems Act of 2011 and 2014 have significantly improved Kenya's payment system, the accelerated adoption of digital payments in the country means we have to continue creating an enabling environment.
Such an environment will usher in the new chapter of Kenya's payments journey, enhance our participation at the regional and global stage, and realise the vision of "a secure, fast, efficient and collaborative payments system that supports financial inclusion and innovations that benefit Kenyans."
The Strategy, therefore, provides a framework to deliver key initiatives, including full-scale interoperability; fostering customer-centric innovation; and supporting the emergence of a 24/7 economy.
As players in the industry, we believe that a robust, competitive and secure payment ecosystem will contribute to macro-economic growth, power Kenya's transition to a digital economy and facilitate inclusive finance for all.
The NPS Strategy presents us with a unique opportunity to enable financial inclusion, business growth, and meet customers' emerging payment needs.
Access the National Payment Strategy 2022-2025 here.