Cashless deals good for Kenya, says study


Adoption of paperless cash transactions in the matatu and retail sectors could further deepen foreign direct investments in the country, a survey has said.

South African based market study firm, Frost & Sullivan said introduction of such platforms by retail and tourism sectors could further entrench use of the mobile phone-based services.

Its latest study titled The Telecommunications Market in East Africa — Key Fixed and Mobile Market Indicators’, says text-based and online-based payment services will be deepened more when the ongoing national Internet backbone rollout is completed.

The study says mobile phone operators could take advantage of the prevailing conducive policy framework in Kenya to entrench e-commerce services into tourism, retail and matatu sectors, thereby creating new revenue streams via sale of data bundles and airtime to users.

Frost & Sullivan said online trading via smart devices and machine-to-machine gadgets at payment tills in supermarkets, restaurants and petrol stations in Kenya have provided a secure and safe way of carrying money and enhanced transactions at all outlets.

Online banking could unlock more funds and boost business dealings across the country once more paypoints install Near Field Communication gadgets that will enable Kenyans to transact online using their phones.

This is projected to contribute to the sale of 3G and 4G phones.