Financial Inclusion

Mastercard Powers Cashless Efficiency In Kenya

Mastercard Drives Cashless Efficiency

Mastercard is partnering with the local government in Kenya to help address the growing problem of citizens having to move from place to place in order to access and pay for government services.

Yesterday (Feb. 7), the company announced its commitment to helping the roll-out of the Huduma Card in Kenya – a secure, reliable and flexible payment option that is aimed at connecting Kenyans to the formal financial sector.

The smart card roll out will also play a role in Kenya’s Vision 2030 to drive efficiency and transparency with focus on developing a cashless economy.

“The Huduma Card will offer people an efficient digital service that is both accountable and secure. The biggest benefit is that cardholders are automatically moved into the financial mainstream, as they will now have a bank account. The online e-Huduma web portal and mobile m-Huduma platform will provide integrated government services and a unified payment gateway to facilitate ease of payment for government services,” Mastercard Division President for Sub-Saharan Africa Daniel Monehin told PYMNTS.

The program will also help citizens to acquire or renew birth certificates, ID cards, passports, drivers’ licenses, marriage licenses, police abstracts, and register business names.

“Those citizens issued a Huduma card will automatically be enrolled in vital government services such as the Security Fund and the National Hospital Insurance Fund, ensuring universal coverage of all Kenyans. The card will further be integrated with the Kenya Revenue Authority to enable issuance of Personal Identification Numbers (PIN) and seamless tax payment,” Monehin added.

Mastercard said it will use a multi-layered approach, including EMV chip and PIN technology, to protect the payments made by Huduma cardholders even if the card is lost or stolen and to enable beneficiaries to receive their funds conveniently and securely.

Once loaded onto the prepaid Huduma Card, funds can be used to pay for goods and services in store, online and by phone or to withdraw cash from ATMs anywhere Mastercard is accepted.

“Huduma has rolled out a successful pilot and we are working closely with them to ensure the wide scale roll-out is a success. There are multiple layers to this roll-out, and over the next five years we will see significant emphasis on ensuring access to the card, education on the benefits of using the solution and boosting actual usage of the card for paying for goods and services,” Monehin stated.


Latest Insights: 

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. The July 2019 Pay Advances: The Gig Economy’s New Normal, a PYMNTS and Mastercard collaboration, examines pay advances – full or partial payments received before an ad hoc job is completed – including how gig workers currently use them and their potential for future adoption.

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