Paysure Ltd has unveiled a payment platform that could see increased options for online shopping, as it cuts down on time retailers have to wait to access payments made by buyers.
The firm in partnership with Kenswitch and Chase Bank has launched the first locally administered online payments platform.
The new platform will allow merchants to access funds within a span of two days after the initial online transaction.
According to the Kenya Bank Association (KBA), online transactions usually take up to a week to conclude.
“With many of the products in the market, merchants have to wait up to a week to access their money… Reducing this time to a day is a positive development,” said KBA CEO, Mr Habil Olaka.
The week delays normally translate to extra costs for retailers as they need more money to finance restocking.
The platform will cater to Kenswitch member bank card holders making online purchases using their debit or prepaid cards. Chase Bank will process the payments.
Kenswitch has a network of 30 financial institutions including 26 banks. Merchants using the platform will have to open accounts with Chase Bank.
Through Paysure’s structure, merchants without websites will also be able to use the payment platform for online transactions.
The charges for using the platform will be Sh5,000 to Sh15,000 for large merchants, a maximum of five per cent of the transaction for small merchants and free of charge for individual users.
Speaking in Nairobi during the launch of the service, Kenswitch MD, George Wainaina, said the model will provide an opportunity for businesses to receive payment for their goods and services from anywhere across the country.