68% of Kenyan SMEs Plan to Invest in Contactless Payment Technologies, Visa Report Reveals
A new study by global payments technology company Visa has revealed that 68% of Kenyan small and medium enterprises (SMEs) plan to invest in contactless payment technologies within the next year, signaling a significant shift toward digital payment adoption in the country’s business landscape. The 2025 Visa Small Business Outlook Report indicates that Kenyan SMEs are increasingly recognizing the competitive advantage of offering diverse digital payment options, with contactless payments emerging as a key priority for business growth and customer satisfaction. This trend positions Kenya as a leader in digital payment adoption among small businesses in Africa.
The report highlights that the push toward contactless payments is driven by several factors, including growing consumer demand for convenience, increased smartphone penetration, and the need for faster transaction processing during peak business hours. SMEs in the retail, hospitality, and service sectors are leading this transition, with many planning to implement QR code payments, NFC-enabled terminals, and mobile point-of-sale systems. Kenyan SMEs are demonstrating remarkable agility in adopting payment technologies that enhance customer experience and operational efficiency. The high percentage planning contactless investment reflects a mature understanding of evolving consumer preferences, said Eva Ngigi, Visa’s Country Manager for Kenya, during the report’s launch in Nairobi.
Small business owners have welcomed the findings, noting that the COVID-19 pandemic accelerated the shift toward cashless transactions and permanently changed customer payment expectations. Installing contactless payment options was a game-changer for my grocery store. Not only did it reduce transaction times during busy periods, but it also attracted younger customers who prefer using their phones or cards for payments, explained Sarah Kimani, who operates a supermarket in Nairobi’s Eastlands area. The Central Bank of Kenya’s continued support for financial innovation has also created an enabling environment for this digital transition.
The long-term implications of this trend could significantly reshape Kenya’s retail landscape, potentially reducing the country’s reliance on cash transactions and further integrating SMEs into the formal economy. Financial technology companies are responding by developing more affordable and accessible contactless solutions tailored for small businesses. As more SMEs embrace digital payments, we expect to see improved business efficiency, better financial tracking, and increased access to credit based on digital transaction histories. This digital transformation will ultimately strengthen the entire SME sector, which forms the backbone of Kenya’s economy, Ngigi added. With nearly seven out of ten SMEs planning to go contactless, Kenya appears poised for another digital payments revolution at the grassroots business level.