New mobile payments startup targets Kenyan youths

The startup, launched just five months ago, has already attracted over 500,000 users, primarily among Kenya's youth, who have long faced the challenge of high transaction costs for sending money and making payments.

At a recent Demo Day, Payless unveiled its second version of the platform, highlighting its growth and the unique features it offers to users. Payless aims to tackle the issue of high mobile transaction fees, which have been a significant barrier to financial inclusion, particularly for young people who rely heavily on digital payments.

Derrick Gakuu, one of the co-founders of Payless, stated that the company’s mission is to save users money, particularly those in the under-30 age group who form the core of its user base.

 “In the first five months, we’ve helped Kenyans save more than 150 million shillings in fees that would have otherwise been charged by other platforms,” said Gaku.

With plans to expand beyond Kenya, Payless is looking to bring its affordable payment solutions to other African countries, starting with Uganda. 

The company is also focusing on supporting small businesses and freelancers through its upcoming Payless Merchant App, which will provide tools such as virtual cards and invoicing.

However, the startup has encountered technical issues, particularly around onboarding and transaction processing.

 Faith Wangare, part of the product operations team, highlighted the company’s efforts to ensure that its platform remains secure and efficient. The app’s stringent onboarding process, which includes ID verification and secure password protocols, aims to protect users’ data and financial transactions.

“We are committed to providing a safe and reliable platform for our users,” said Wangare, noting that the company is working to resolve any technical glitches that have impacted the user experience.

As Payless continues to grow, the company is calling for greater support from the government and regulators to foster innovation within the digital payments sector.

 “We need to create opportunities for young people to thrive in the digital economy,” said Gaku, referring to initiatives like the Talantahela program, which promotes digital entrepreneurship