NAIROBI (Xinhua) --
The use of plastic cards in Kenya was flat in
2017 pointing to the challenges the mode of payment is facing in
the East Africa where mobile money is dominant.
The East African
nation’s residents made transactions worth 1.11 billion U.S.
dollars per month last year, a Central Bank of Kenya (CBK)
report showed Friday.
The figure was
recorded from January to December, with the data pointing to
stagnation resulting from lack of interest in plastic cards due
to prevalent use of mobile money. In total, plastic cards
transactions stood at 13 billion dollars during the period.
And in 2016, the
East African nation’s monthly plastic card usage averaged 1.12
billion dollars, from January through to December.
as the usage stagnated, the number of people holding plastic
cards was on the rise in 2017, according to the apex bank.
In January 2017,
some 1.49 million people in the East African nation were holding
the cards, with the figure rising to hit 1.56 million in June
and surging further to close the year at 1.64 million.
Of all the cards,
debit cards remained the most popular consisting of 14.5 million
or 98 percent of the total cards. They were followed by prepaid
cards at 1.35 million and credit cards at a paltry 200,000
the stagnation of plastic cards to ubiquitous usage of mobile
money, which has permeated every sector of the society.
Bank customers, for
instance, have linked their accounts to mobile phones,
withdrawing money from the financial institutions straight into
their handsets. This has, therefore, made ATMs almost
On the other hand,
merchants have obtained paybill numbers allowing people to
readily pay their bills via their mobile phones.
“Plastic cards have
little chance of growth in Kenya especially because banks are
migrating their services online and linking with mobile phone
companies to provide paperless transactions in a cost effective
way. I don’t see plastic cards growing,” said Henry Wandera, an
economics lecturer in Nairobi.
In 2017, Kenyans’
use of mobile money in the first 11 months rose to 33 billion
dollars from 31 billion dollars in the previous year.
The East African
nation’s commercial banks in 2015 successfully transited to EMV
(Europay, Mastercard and Visa) debit and credit cards, a move
that was expected to boost the use of the cards.