2nd-Feb-2026 • Mohamed Hassan • Digital Payments
In today's interconnected world, the digital economy is expanding at an unprecedented pace. For small and medium enterprises (SMEs) in Kenya, embracing this change can lead to increased efficiency, cost savings, and growth opportunities. One of the key areas where SMEs are reaping these benefits is through digital payments.
Digital payments, also known as electronic payments, refer to transactions conducted online or over mobile devices. They offer a range of advantages for SMEs in Kenya, especially in terms of convenience and speed.
Consider the example of Lipabiz Technologies Ltd, a business management platform and payments platform based in Kenya. With Lipabiz, businesses can easily manage their finances, invoices, inventory, and customer relationships, all while accepting digital payments securely. This integration simplifies operations for SMEs, freeing up valuable time that can be invested in core business activities.
According to a 2021 report by the Central Bank of Kenya, mobile-based digital payments accounted for over 95% of all transactions in the country. This statistic underscores the widespread adoption and popularity of digital payments among Kenyans, making it an ideal solution for SMEs looking to tap into this market.
Security is a major concern for any business, particularly those handling financial transactions. Digital payments offer enhanced security features compared to traditional methods like cash or checks. For instance, Lipabiz employs advanced encryption and fraud detection technologies to ensure secure transactions.
Digital payments also help SMEs save on costs associated with physical transactions, such as printing, transporting, and storing cash or checks. These savings can be reinvested into the business to drive growth and improve customer experience.
