RELEASE: Visa and I&M Bank breathe new life into Kenya's ecommerce trade

 

 

news release

Visa and I&M Bank breathe new life into Kenya’s ecommerce trade

 

Nairobi- Visa, in partnership with I&M bank of Kenya, recently celebrated the bank’s ecommerce license launch, a first for the growing East African market.

 

The internet and its commerce based opportunities is still a relatively new concept in Kenya but is fully supported by government.  Internet access has improved dramatically over the past few years; usage has increased from around 1.9 million users in 2003 to approximately 3.5 million users currently.  At the same time, the number of .ke domains has also increased from less than 2 000 domains in 2006 to more than 10 000 domains registered this year.  These range from simple businesses like flower selling to high tech offerings, all ready and waiting to make use of ecommerce technology.

 

With an already captive market of over 4 million card holders (50% of whom are Kenyan), Visa plays a vital role in the growth of the East African ecommerce market.  While many banks in Africa are not yet technologically ready for ecommerce, Visa worked with Kenya’s I&M bank to ensure they were compliant with international standards, setting the bar for future interested financial institutions. 

 

Speaking at the launch of I&M bank’s ecommerce license, Victor Ndlovu, Visa’s Country Manager of Sub Saharan Africa said, “Ecommerce is one of the most important facets of the Internet to have emerged in recent times. Ecommerce allows people to carry out business without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse.”

 

Ndlovu also pointed out that the direct cost-of-sale for an order taken from a web site is lower than through traditional means (retail, paper based) as there is no human interaction during the on-line electronic purchase order process. It is therefore the cheapest means of doing business.  Also, electronic selling virtually eliminates processing errors, as well as being faster and more convenient for the visitor.

 

This pioneering venture has boosted the entire ecommerce market, attracting interest from several of Kenya’s larger banks including Barclays, Standard Chartered, Coop Bank and Equity Bank.  “We believe our commitment to making banking services more accessible will stimulate the already robust drive towards a modern electronic payments industry in Kenya,” commented Ndlovu. “This will have significant social benefits for the people of this wonderful country, promote economic growth and improve efficiencies in government service and delivery, particularly to those people who exist on the very margins of society.”

 

Kenya’s improved internet connectivity has contributed to the smooth launch of ecommerce although access to stable lines and indeed computers is still a challenge.  Statistics from recent years indicate that phone line penetration density is relatively low, with about 4 and 1.6 lines in every 100 people in urban and rural areas respectively.   However Ndlovu is upbeat about the East African market in general.  “Although ecommerce is currently only viable in Kenya, we predict that within the next six months, progress will be made in neighbouring countries.  Kenya is a very mature market and sets a good example for ecommerce business opportunities in the region.”

 

Analysts echo Ndlovu’s optimism, predicting that the leap in internet businesses will grow dramatically over the next few years.

 

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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 the world’s most advanced processing network—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.

           

For further information, please contact:

 

Gillian Cederwall                                                                                                                       

Visa

+2711 483 4313

E-mail: buchanag@visa.com

 

Elmarie Swart                                                   

Fleishman-Hillard

+2711 548 2000

E-mail: elmarie.swart@fleishman.com