9 Benefits of Online Payments for Businesses in Kenya

July 25th, 2023 by Felix Cheruiyot

benefits of online payments for businesses

Businesses that accept customer payments online enjoy higher customer satisfaction and lower costs. Discover other benefits of online payments for businesses in Kenya.

Cash may still be the most dominant payment method in most of the world, but things are changing fast. Other forms of payment have emerged, mainly out of necessity.

Online transactions, in particular, require other forms of payment other than cash and cheques, which are only good for in-person payments. And with the e-commerce market in Kenya expected to reach USD 3.5 billion by 2027, it is clear that consumers find great convenience in transacting online.

Online payments have many benefits for consumers, but there is an equally compelling case for businesses to accept customer payments online.

Businesses that operate exclusively online or follow a hybrid model with a mix of online and in-person transactions enjoy many more benefits than just payment convenience.

This article discusses 10 benefits of online payments for business. First, a quick primer on online payments.

What is an online payment?

An online payment is a method of transferring money electronically from one party to another over the internet. It is a secure and convenient way to make payments for goods and services that is becoming increasingly popular in Kenya.

More Kenyans are shopping online than ever before, and this growth in e-commerce is supported by a vibrant digital payments sector that continues to innovate and bring more convenient digital payment options and tools.

For example, Kenyan Shopify stores that use IntaSend as their payment gateway can have Bitcoin as a supported payment method on their checkout pages. That is on top of the other options, like MasterCard, Visa, and - crucially- M-Pesa.

When you accept customer payments on your website, you want to offer payment methods your customers want to use. And in Kenya, where over 30 million people have M-Pesa mobile money wallets, any business that accepts customer payments on their website or app must have the mobile money wallet as a payment method.

9 Benefits of online payments for businesses in Kenya

From a consumer perspective, online payments are more convenient, safer, cheaper, and faster. So those that can prefer to shop and transact online, and as a business, it is in your best interests to put the systems and tools for that in place.

Too many businesses in Kenya still do not accept digital payments. Below we discuss some of the benefits of online payments they are missing out on:

1. Increases sales.

Online payments make it easier for customers to buy goods and services from businesses using payment methods they prefer, which can lead to increased sales.

You can reduce abandoned carts and boost your sales even more by availing more payment options so that customers have an alternative in case their preferred payment method fails.

For example, customers can use their virtual Visa card to pay if they have exhausted funds in their M-Pesa mobile wallet. With the IntaSend payment gateway, your customers in Kenya have both Mastercard and Visa as card payment options.

2. Reduces costs

A brick-and-mortar retail business needs considerable resources in both manpower and equipment to operate a smooth and secure checkout process. It requires cashiers and POS machines. You also need to maintain a back office staff that keeps track of and reconciles your cash and card receipts, not to mention that banks also charge fees for cash deposits.

You can save most of these costs with an online payment system like IntaSend. The system does not need human intervention and works around the clock, so your business never really closes.

3. Improves operational efficiency.

Using an online payment system digitises most of the business functions and tasks an offline business would require manual action to accomplish.

Because your customer payments are digital, you can keep all your records in one place and automatically generate reports on sales, returns, chargebacks, and discount coupons redeemed.

When information is at your fingertips like that and not buried in mounds of physical files, you can reduce your workload, simplify admin work, and make decisions faster, saving you time that you can use for higher-level, more impactful tasks.

4. Allows you to reach a wider audience.

Establishing your business and accepting customer payments on your website removes the logistical barrier of physically collecting payments from people outside the country. It instantly widens your reach beyond Kenya’s borders.

While this benefit does not apply to businesses that offer local services, if you are a SaaS products vendor, safari operator that targets foreign clients, or retail business with global ambitions, accepting online payments can make a massive difference to your sales.

5. Improve customer satisfaction.

Every business has one goal, to create the best customer experience. This ensures customers keep returning for more and speak positively about your product to their peers.

So if customers are satisfied with their experience shopping on your online store, your business will get the sales it needs to grow. And besides the quality of the product itself, nothing affects customer satisfaction more than the convenience of paying for it.

Customers appreciate the convenience of making payments online and are often more likely to return to businesses that offer online payment options. If they have to complete many steps to pay, you will lose them to competitors that can provide faster, hassle-free checkout.

6. Builds trust with customers.

Customers are likelier to trust businesses that provide secure and convenient payment options. Paying online, at your convenience, and from the comfort of your home or office is much safer than carrying wards of cash to the supermarket.

7. Helps to collect data about their customers.

Collecting customer data, including the payment methods they prefer when you accept online payments, is much easier. This is data you can use to optimise your marketing and sales efforts. You, of course, must seek customers' consent before collecting their data and use it responsibly.

8. Improves compliance.

Accepting online payments helps you comply with government regulations against money laundering and other commercial crimes. Many governments require businesses to collect certain payment information, and online payment systems can make this process easier.

9. Guarantees security of payments.

Businesses in Kenya suffer losses due to payment scams by criminal syndicates. These include fraudulent cheques and counterfeit banknotes. You can save your business from these losses by accepting online payments that are safer and more secure.

Debit and credit cards and mobile wallet payments are processed through secure channels and must meet PCCI standards. This helps protect your business businesses from fraud.

Take your business online and digitise your customer payments with IntaSend.

If you are a business owner in Kenya, consider accepting online payments. Online payments can help you to increase sales, reduce costs, improve efficiency, and reach a wider audience.

With IntaSend as your online payment system - combining payment gateway and payment processor capabilities, you can run a leaner, more efficient, and more profitable business.

Businesses using the IntaSend online payment system get a digital wallet that serves as their merchant account and into which their customers’ payments settle. Your digital wallet has tools that allow you to do more with your funds, including the ability to:

You can do all of this at lower rates than those offered by traditional banks. Your IntaSend business account and digital wallet has no maintenance fees, enjoys bank-level security and several fraud prevention features, and allows you to send money to any mobile network in Kenya.

Sign up with IntaSend and start accepting customer payments online, expand your reach, improve customer satisfaction, and boost your sales and profits.

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