Visa has seen the light, Africa’s motorcycle transport and logistics business just started and it’s going to be huge.
To make sure its not left out of the disruption, Visa has collaborated with KCB Bank Kenya and the Boda Boda Safety Association of Kenya (BAK) to digitize payments for the motorcycle transport operators as its newest onboarding strategy, after working with SMEs and startups with its Visa on Mobile product.
Starting with a three-month pilot project, the firms will onboard 100 Boda Boda riders on Visa on mobile to enable make and receive free mobile payments to and from their clients.
According to Kennedy Luhombo, Senior Business Development leader, Merchant Sales and Acquiring, Visa East Africa, “With Visa on mobile, we are providing an efficient means for Boda Boda operators to receive payments, understanding the obvious security risks that come with handling cash.”
Kenya has made significant strides towards enhancing efficiency in digital payments and promoting financial inclusion. The tri-partite collaboration is part of the Bank’s aspiration to create a viable and profitable cashless ecosystem to the benefit of the economy as a whole.
“This partnership marks our commitment to foster an inclusive, safe and seamless digital ecosystem as well as help operators in the transport sector to transact faster, more securely and cost-effectively,” said Annastacia Kimtai KCB Bank Kenya Retail Director. She added that: “By broadening our collaboration with Visa, we are further expanding the reach of financial and economic inclusion through digital solutions.”
The payment card will enable Boda Boda operators to grow their business while reducing the costs associated with handling cash. The payment card will also let the Boda Boda operators be in complete control of their payments, thereby minimizing the risks of unauthorized transactions.
According to Charles Gichira, Principal, Boda Boda Safety Association of Kenya there are over 1.2 million registered operators under BAK and the group is on track to create a formidable investment block that can create income-generating opportunities beyond their day-to-day operations on the road.
The move to digitize payments in the Boda Boda sector will enable riders trace their money in terms payments from their customers and withdrawals from their transactions accounts.
Customers can use Visa on mobile to send money directly from their bank to a recipient’s bank account regardless of whether they use the mobile app or USSD code of the bank.
Visa on mobile is now live in Egypt, Ghana, India, Kazakhstan, Kenya, Nigeria, Rwanda and Tanzania. There are plans to launch in Uganda, Zambia and other countries in Africa in the near future.