I&M Bank and Mastercard have introduced a new credit card tailored for businesses, aiming to capitalize on the growing adoption of credit cards in Kenya. The new offering is set to enhance their presence in the Sh300 billion card industry and cater to the expanding needs of the business and corporate banking segments.
Victor Ndlovu, Head of Business Development at Mastercard, highlighted that credit card usage in Kenya is on the rise, with recent data from the Central Bank of Kenya showing card payments totaling Sh114.8 billion in the first two months of 2023, a significant increase from Sh110.9 billion in the same period in 2022. The uptick in credit card usage is attributed to advancements in mobile payments, which have expanded access to previously underserved segments.
The new credit card offering includes the business credit card and the world business credit card, designed to provide expense management tools, transaction alerts, and discounts on global hotels, car rentals, and e-commerce platforms. Shameer Patel, General Manager of Personal & Business Banking at I&M Bank Kenya, emphasized that these features will enhance financial accountability and control over spending.
The card also allows companies to set and adjust spending limits for employees, simplifying expense tracking and management. Self-service features enable cardholders to view balances, check transactions, and make payments conveniently, addressing some of the common pain points in business finance management.
The Kenya cards and payments market is projected to reach an annual value of $2.3 billion by the end of 2024, with a growth rate of over 10% from 2024 to 2028, according to The Global Data. Despite the steady rise in payment card usage, Kenya’s preference for cash and mobile payments, combined with limited card acceptance at merchant locations, continues to impact the sector’s growth.
With the economy recovering from 2023’s global economic challenges and expected growth in 2024, the credit card market in Kenya is poised for expansion. The collaboration between I&M Bank and Mastercard aims to drive further adoption and support the evolving needs of businesses in the country.
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