Over the years global payment solutions provider Visa has been equipping millions with the tools they need to create, manage and accept secure digital payments. This has included the provision of debit and credit card payment solutions.
And with the world becoming a tech economy village, there has been a need for accelerated financial solutions in the emerging economies. The majority of these economies are in the Sub-Sahara Africa region.
“Sub-Saharan Africa is a fast-growing region with a tech-savvy population,” says Aida Diarra, the Senior Vice President & Head of Visa in Sub-Saharan Africa.
This growth has in tandem sparked the growth of digital payments. For instance, a survey highlighting the impact of digital platforms shows that Kenyans prefer to use cashless payments to conduct business.
The study that was released by Visa in February 2022 also shows that the high usage of digital payments in Kenya is concentrated in food, entertainment, tours and accommodation, agriculture, transport and delivery, and professional services sectors of the economy.
This implies that digital payment solutions have become part of daily settlement of expenses.
In addition to this, the survey shows that Kenyans are reaping more benefits from digital payment solutions compared to the traditional cash method.
For instance, this report revealed that 69 per cent of Kenyan businesses using digital payments such as mobile money transfer, card payment, contactless cards, and bank transfer have been positively impacted. They are also easily able to track expenses and revenues, enabling fast transactions and cutting on errors in change.
According to the survey 83 per cent of businesses that have adopted digital payments experience an improvement in revenue. In addition, 55 per cent of business owners plan to increase investment in new technologies.
To bridge this gap, Visa has established the first Innovation Studio in Africa. This Visa studio has been set up in Nairobi. This studio opened its doors on April 6 2022.
Already, the studio has welcomed clients and partners with a unique human-centric design based around the principles of shared knowledge to help Visa’s network of businesses overcome some of the biggest challenges while uncovering new commercial avenues of opportunity.
”Sub-Saharan Africa is home to a thriving community of start-ups, incubators and accelerators. The Innovation Studio in Nairobi is a realization of our vision to be an engine of commerce and to provide individuals, businesses and economies access to the financial services they need to thrive,” said Diarra.
Diarra adds that the studio will also help Visa to accelerate the co-creation process and fast track the market readiness of innovation payment solutions.
Through the studio, ideas to expand the growth of popular functions such as Tap to Phone and Pay on Delivery will be explored at the Innovation Studio alongside the ongoing development of cutting-edge smarter payment solutions that leverage the blockchain, IoT, VR and biometrics.
Why Africa’s first Visa studio in Nairobi is a game changer for Kenya
“It is going to be completely simpler and easier for people to exchange value and do commerce together,” said Tayo Oviosu, the founder and chief executive officer of Paga, a mobile payments company that specializes on digitizing cash in emerging economies. “If we can get smartphone penetration to increase even further, we are going to see greater digitization, and this will inspire a lot more innovation across the continent.”
This is echoed by Diarra who says that the new African Innovation Studio supports Visa’s commitment to promoting innovation and creating opportunities for clients and fintech partners to co-create market-relevant payment and commerce solutions throughout the region.
“We are confident that the innovation studio will continue that legacy and cement Sub-Saharan Africa’s position as a leader in creating out-of-the-box solutions to deal with our most pressing challenges as a region,” says Diarra.