Travel emerging as a key growth area for mobile payment services in Kenya

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Kenya currently ranks among top countries with one of the highest mobile payment readiness index score. P2P payments are popular in the country and 92% population is familiar with this service. Approximately 73% regularly use fund transfer through mobile platform.  Mobile payment for travel activities, especially purchase of tickets has been growing steadily in Kenya. Kenyan travelers are expected to reduce their reliance on cash and payment cards and opt for mobile wallets to make travel related payments as it offers more convenience and security.

According to PayNXT360, transaction value of travel market in Kenya is expected to record a CAGR of 21.2% during 2016 to 2020 to reach US$ 3,316 million by 2020. The transaction value of Kenyan travel market recorded a growth rate of 25.4% in 2014 to reach US$ 1,244 million in 2015.

Travel commerce platform Travelport has launched mobile payment services through POS technology Travelport Smartpoint for agents in Kenya. The service allows travel agents to accept payment through M-Pesa and Airtel Money and the platform is powered by 3G Direct Pay which is a leading solution provider in Kenya.

With Travelport mobile payment solution, travel agents will be able to process payment requests at a faster pace which is expected to improve cash flow for the brand. Popularity of mobile payments along with convenience is expected to drive this initiative towards stable revenue generation and increase in consumer base for Travelport. Since this service is first of its kind in travel segment, further launches from other players can be anticipated in coming years.

To know more and gain deeper understanding of mobile payment industry in Kenya, click here.