RELEASE: Kenya reaches 2 Million Visa Cards Milestone

news release

Kenya reaches 2 Million Visa Cards Milestone

Social and economic benefits stack up for Kenya as 2.2 million people opt for card-based banking

Nairobi, March 2010 – Visa, the world’s leading payments network recently announced that its client financial institutions in Kenya have issued more than two million Visa cards. The milestone also celebrates a $3.3billion transaction volume on Visa cards in Kenya as the country’s banking sector brings more individuals into the formal financial services through electronic payment systems. 

In reaching this milestone, built over the past 19 years; Charles Niehaus, General Manager for Visa sub-Saharan Africa comments, “I would like to congratulate our partners and client financial institutions on this impressive achievement. Our vision is to bring more people into the formal banking system through access to electronic banking systems and services. We aim to provide Kenyans with a safer, more convenient and reliable way to pay and be paid.” 

Businesses and government are looking to increase efficiency, visibility, control and security while merchants are accepting payment cards to improve sales and customer convenience.

“Visa is very excited to continue working with our partners in Kenya to promote the benefits of electronic payments and develop innovative new products together. Just last month, Kenya experienced a first when e-Commerce became a reality, giving Kenyans the option to purchase goods and services safely and conveniently online using debit and credit cards.” Niehaus continues.

Kenya is one of many countries around the world facing the challenge of how best to bring unbanked individuals into the formal banking systems.  Electronic payments are critical when developing a strong, modern economy. Visa products can promote transparency and accountability, reduce transaction costs and decrease the size of the gray or informal economy, all of which helps to stimulate economic growth and employment.

“One of the reasons that cash-dependent countries tend to have low economic growth rates is that currency stock held outside the system in the informal economy deprives banks of funds needed for credit expansion and monetary growth. Every currency unit that circulates as hard cash is a missed opportunity to invest, develop and grow an economy. Two million Visa cards in Kenya is evidence that significant progress is being made in bringing more Kenyan shillings into the Kenyan banking system,” Niehaus said.

All evidence points to the fact that the more people who join the banking system, the more stable it becomes. This in turn has a positive and lasting effect on an economy, social reform and government efficiency.

Despite the range of innovative solutions that have already been launched by Visa’s partner banks to help expand the banking sector, Niehaus states that Visa remains committed to finding new ways to enable its client financial institutions to deliver improved services to the banked and unbanked. “We are committed to supporting the Kenyan market and our partners to broaden the card and electronic payment market by educating card holders about using their cards for everyday shopping and increase the number of terminals that accept Visa cards in shops, supermarkets and at other merchants.”

About Visa

Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.. Corporate Backgrounder

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Distributed by:

Tell’Em Public Relations

Distributed on behalf of:

Gillian Cederwall

Corporate Communications Manager: Sub-Saharan Africa

Visa International CEMEA