That’s according to Dr. Rutendo Hwindingwi, divisional director for Sage East and West Africa, who says that the surge in mobile cash across Kenya is assisting to drive entrepreneurship and efficiency for little businessessmall companies. The single biggest advantage of mobile money, he adds, is that it allows smaller companies – even casual, microbusinesses without banking accounts – to take advantage of the advantages of digital payments.
He keeps in mind that mobile cash has changed Kenyans’ lives by making it quick and simple for people to pay each other. Now, it promises to also make it easier and more secure to do company for entrepreneurs, and potentially even open new markets for them.
Kenya, one of the world’s pioneers in the mobile cash space, acquire Sh3billion in mobile transactions each day, according to statistics from the Communications Authority of Kenya. The nation has Africa’s greatest level of mobile cash penetration at 58%.
Yet, in spite of the excellent numbers, there is still a lot of space for mobile money in Kenya to grow. According to one Nielsen research study, 95% of Kenyans still pay with cashmoney in a retail environment, 12% make usageuse mobile cash, and just 2% usage credit or debit cards. Small amp; Medium Businesses, particularly those in the retail and transportation environment, might benefit significantly by driving more deals through mobile cash, states Dr. Hwindingwi.
“In Kenya, money still controls deals in between lots of Little amp; Medium Companies and their consumers,” he adds. “A majority of small companies still like cash due to the fact that they are unwillinghesitate to pay card deal costs. However, cash has numerous disadvantages, and we anticipate more and more business owners to start choosingselecting digital, mobile payments.”
Dr. Hwindingwi keeps in mind that money has a range of drawbacks for businesses: it is pricey to handle, exposes them to the threat of theft, and suggests that they require to keep a float to offer clients change. Mobile and digital payments are much easier to track in a monetary system; what’s more, somebody who lives in another town or city can quickly pay you without physically existing.
Dr. Hwindingwi says that mobile cash and payments solutions for merchants are growing all the time, thanks to companies such as Kopo Kopo, which use mobile cash systems as a platform for merchant services such as mobile payment acceptance and merchant moneycash loan. The result is that mobile cash is gradually moving beyond the person-to-person arena into the business-to-business and business-to-consumer areas.
States Dr. Hwindingwi: “The future is mobile and we at Sage are providing our clients the power to control their businesses from the palm of their hand.
Similarly, our consumers’ consumers are mobile and wantwish to use practical mobile services to pay and connect with the business they communicate with.
Mobile money is a game-changer for business and consumers because it makes it so easy, safe and convenient to negotiate.”
The complete Sage item portfolio will be on show at Sage Top, the world’s biggest gathering of business owners and leaders of Small amp; Medium Companies, taking locationoccurring in Chicago, IL, on July 25-28.