Mobile Apps dominate as Kenyans shift away from cash and cards - Survey

A new survey by Integrated Payment Services Limited (IPSL) has revealed that mobile banking apps and mobile money wallets are now the preferred payment methods in Kenya, signaling a shift away from cash and cards.

The Pesalink 2024 Usage & Attitude Survey shows that 50.15% of users rely on mobile money for transactions, while 41.54% prefer banking apps.

The findings highlight the growing importance of instant, account-to-account (A2A) payments, which saw a 35% year-on-year growth in 2024.

The report also found that 57% of Pesalink users have accounts in multiple banks, demonstrating a preference for flexibility.

Speed and convenience topped the list of priorities for payment users, while traditional incentives like rewards and loyalty programs ranked lowest.

IPSL CEO Gituku Kirika noted that these trends present an opportunity for banks to enhance their A2A payment services.

“The challenge for banks is that customers are likely to switch to a faster and more convenient offering. But there’s a huge opportunity to invest in interoperable and standardized cross-bank services,” he said.

The Central Bank of Kenya (CBK) is working on a Fast Payments System (FPS) to enhance interoperability and reduce costs.

Pesalink already enables users to transfer up to Ksh.999,999 across bank accounts, mobile money wallets, SACCOs, and fintech platforms via online, mobile apps, and USSD.

As Kenya moves towards a cashless economy, the survey underscores a fundamental shift in consumer behavior, with seamless and efficient payment options driving the future of financial transactions.