Last Updated on June 28, 2024 by digitalburst

What is a payment gateway?

A payment gateway is like a digital middleman or like a secure bridge between the customer, the merchant, and the bank.

Imagine you are buying a new gadget online, you select it, add it to your cart and proceed to check out. At the checkout, you enter your credit card details or choose another payment method like PayPal, which is when the payment gateway’s work kicks in. It takes your payment information and encrypts it to keep it safe and then the encrypted data is sent to the payment processor then your bank. They check if you have enough money and if the transaction has no any signs of fraud. The bank sends a response back either approving or declining the transaction. If approved the money is transferred from your account to the person you are buying from account.

Plainly it means the payment gateway ensures that your payment details move safely across the internet and the transaction gets approved or declined quickly.

Choosing the Right Payment Gateway for Your Business in Kenya

Choosing the right payment gateway for your online store is crucial for ensuring smooth transactions and customer satisfaction. Here are some detailed and user-friendly tips to guide you:

Credibility

When it comes to choosing a payment gateway, credibility is key. You want to partner with a provider that has a strong reputation and a proven track record. Here’s how to gauge credibility:

• Research Reviews and Testimonials: Look for feedback from other businesses that have used the gateway. Positive reviews and testimonials can give you confidence in their reliability.
• Market Presence: Consider how long the provider has been in the market. A longer presence often indicates stability and trustworthiness.
• Professionalism: Check if the provider is known for professional customer service and support. Reliable customer service can save you time and headaches down the line.

Safety

Security should be a top priority when dealing with online payments. Here’s what to look for to ensure your transactions are secure:

• Industry-Standard Security Protocols: Ensure the gateway uses SSL encryption to protect data during transmission.
• Compliance: Check if the provider complies with regulatory requirements such as PCI DSS (Payment Card Industry Data Security Standard). This compliance is essential for safeguarding sensitive customer information.
• Fraud Prevention: Look for additional security measures like two-factor authentication and fraud detection tools.

Payment Method Compatibility

A good payment gateway should support a wide range of payment methods to cater to different customer preferences. Here’s how to ensure compatibility:

• Diverse Payment Options: Make sure the gateway supports credit and debit cards, mobile money (such as M-Pesa), and other local payment options popular in Kenya.
• Customer Accessibility: Offering various payment methods makes it easier for customers to complete their purchases, potentially increasing your sales.

Costs and Fees

Understanding the cost structure of a payment gateway is crucial for managing your expenses. Here’s what to consider:

• Transaction Fees: Compare the fees charged per transaction. Some gateways charge a flat fee, while others take a percentage of each sale.
• Setup and Maintenance Costs: Be aware of any initial setup fees or ongoing maintenance charges. These can add up, so factor them into your decision.
• Transparency: Look for a provider that is upfront about all fees and charges. Hidden costs can affect your budget, so transparency is essential.
• Value for Money: Ensure that the fees you pay are justified by the value and quality of service you receive. Sometimes, paying a bit more for better service and features is worth it.

Best Payment Gateways in Kenya

Payment Gateway	Supported Payment Methods	Security Features
Paystack	Cards, Mobile Money Accounts, QR Codes, Bank Accounts, USSD	PCI DSS Compliant, SSL encryption
Pesapal	Visa, MasterCard, American Express, Mpesa, Airtel Money, MTN	SSL encryption, approval requests from financial institutions
Jambopay	Visa, MasterCard, M-PESA, Airtel Money, T-CASH, Bank Payments	SSL encryption
iPay Africa	Visa, MasterCard, M-PESA, Airtel Money, eLipa	SSL encryption, 3D Security for card transactions, PCI DSS Compliant
DPO Group	Visa, MasterCard, American Express, Diners Club, M-PESA, Airtel Money, MTN	SSL encryption, PCI DSS Compliant
Flutterwave	Cards, Bank Accounts, Mpesa, QR code, Mobile Money, USSD, Bank Transfer, Apple Pay, Google Pay	PCI DSS compliant
JumiaPay	Credit cards (Visa, MasterCard), Mobile Money (Mpesa, Airtel Money)	SSL encryption
Kopokopo	Mpesa, Masterpass, T-Kash	SSL encryption
Jenga	Visa, MasterCard, JCB, Maestro, Diners Club, CUP, AMEX, PayPal, Airtel Money, Mpesa, Equitel, PesaLink, RTGS, SWIFT	SSL encryption, PCI DSS Compliant
Mpayer	ACH Bank Debit, Credit Card, Local Bank Transfer	SSL encryption

1. Paystack

Paystack is undoubtedly the best payment gateway in Kenya and Africa. It’s a robust gateway that allows businesses to accept payments through various methods. It offers tools for invoicing, subscriptions, verification, and reporting.

Why Paystack?

• Multiple Payment Channels: Offers diverse ways for customers to pay, from cards to bank transfers and mobile money.
• Customizable Payment Pages: Tailor the payment pages to match your brand, creating a seamless customer experience.
• Detailed Reporting: Provides in-depth reports to help you effectively manage and analyze your transactions.
• Secure Transactions: High-security standards ensure that all transactions are protected.

2. Pesapal

Pesapal is a popular choice among businesses in Kenya. It supports various payment methods like Visa, MasterCard, American Express, Mpesa, Airtel Money, and MTN. Pesapal also facilitates in-store payments through POS systems, making it versatile.

Why Pesapal?

• Multi-channel Payment Options: Your customers can pay using their preferred method, whether it’s through a card or mobile money, which makes shopping convenient.
• Advanced Fraud Management System: Pesapal’s robust system detects and prevents fraudulent transactions, ensuring your business stays secure.
• Real-time Transaction Monitoring: You get up-to-the-minute updates on your transactions, giving you complete control over your finances.

3. Jambopay

Jambopay is known for its reliability and security. It’s great for a variety of transactions including bill payments, sending and receiving money, and reselling airtime.

Why Jambopay?

• Multiple Payment Options: Whether it’s Visa, MasterCard, M-PESA, Airtel Money, or T-CASH, Jambopay supports them all, making payments easy for your customers.
• Recurring Billing Feature: If you run a subscription-based business, this feature automates billing, saving you time and effort.
• Detailed Reporting System: Get comprehensive reports that help you track and analyze your financial data efficiently.

4. iPay Africa

iPay Africa offers a flexible and versatile payment solution. It supports a range of payment methods and provides plugins for integrating payments into various online platforms like Moodle, PrestaShop, WooCommerce, and more.

Why iPay Africa?

• Versatility with Payment Channels: Supports multiple payment methods, making it suitable for different business types.
• Bulkpay Wallet Transactions: Easily facilitate bulk payments, which is great for large-scale transactions.
• Seamless Bank Integrations: Integrates smoothly with various banks, enhancing the overall payment experience.
• Utility Payment Solutions: Simplifies the process of paying utility bills directly through the platform.
• Diverse Card Support: Accepts a wide range of cards, increasing your business’s reach.

5. DPO Group

DPO Group is a strong option for businesses that need to handle both local and international transactions. It supports many payment methods and offers excellent customer support.

Why DPO Group?

• Variety of Payment Methods: Accept payments from multiple sources including Visa, MasterCard, American Express, and more.
• Maximum Security: High-level security measures protect your transactions, keeping your business and customers safe.
• Dedicated Customer Support Team: Provides reliable support to help resolve any issues quickly and efficiently.

6. Flutterwave

Flutterwave is one of the most popular payment gateways in Africa. It supports a wide range of payment methods and currencies, making it ideal for businesses with an international customer base.

Why Flutterwave?

• International Payments: Easily handle transactions from customers around the world.
• Multi-channel Payments: Offers various ways for customers to pay, enhancing convenience and satisfaction.
• Easy Management: The user-friendly interface makes it easy to manage transactions and payments.
• Secure Transactions: High security standards ensure safe transactions, protecting both you and your customers.

7. JumiaPay

JumiaPay is developed by Jumia, the largest online marketplace in Africa. It supports credit cards and mobile money, and offers perks like cashback and discounts for Jumia customers.

Why JumiaPay?

• Ease of Use: The platform is simple and intuitive for both businesses and customers.
• Continuous Integration of New Payment Methods: JumiaPay keeps up with the latest payment technologies, ensuring your business stays current.
• Loyalty Program: Offers cashback and discounts, which can enhance customer loyalty and repeat business.

8. Kopokopo

Kopokopo is a Kenyan payment gateway that supports mobile money payments and offers additional services like cash advances and bulk payment services.

Why Kopokopo?

• Greater Visibility into Business Performance: Provides detailed insights and analytics on business transactions, helping you make informed decisions.
• Security of Cashless Payments: Secure handling of payments reduces the risks associated with cash transactions.
• Quick Cash Advances: Offers cash advance services to improve your business’s cash flow.
• Convenient Business Payments: Simplifies the process of making payments to suppliers and employees.

9 Jenga

Managed by Equity Group, Jenga supports a wide range of payment methods and offers APIs for easy integration with various platforms.

Why Jenga?

• Enhanced Security: Uses high-level security measures to protect your transactions.
• Lightning-fast Checkout: Efficient processing speeds up the checkout process, improving the customer experience.
• Safe and Sound Transactions: Ensures that all transactions are secure and reliable, giving you peace of mind.

10. Mpayer

Mpayer, developed by Zege Technologies, helps businesses manage cash and mobile money payments efficiently. It also offers analytics and customer relationship management tools.

Why Mpayer?

• Cash and Mobile Money Management: Efficiently manage both cash and mobile money payments.
• Analytics Tools: Provides insights and analytics to help you manage your business better.
• Customer Relationship Management: Enhances customer relationships and satisfaction with effective CRM tools.

Key Benefits of Payment Gateways in Kenya

Effortless Payments

Integrating a payment gateway into your Shopify store in Kenya allows customers to effortlessly pay using a variety of methods. Whether they prefer credit cards, debit cards, or mobile money options like Mpesa and Airtel Money, the process is seamless and user-friendly.

Worldwide Sales Opportunities

Connecting your Shopify store with a payment gateway not only serves local customers but also opens the doors to international sales. This broadened customer base can significantly amplify your business growth and expansion potential.

Secure and Trustworthy Transactions

Payment gateways come with advanced security features that protect customer details and transactions. This not only instills trust and confidence in your Shopify store but also fosters long-term customer loyalty.

Fast and Efficient Checkout

A well-integrated payment gateway optimizes the checkout process, making it quicker and more efficient. This reduces delays and minimizes the chances of customers abandoning their purchases.

Regulatory Compliance

Reputable payment gateways ensure that your business is compliant with both local and international regulations. This provides peace of mind and helps you avoid legal complications related to online transactions.

Streamlined Processes

Payment gateways automate various aspects of the payment process, including payment verification, order processing, and confirmation. This reduces manual errors and enhances the efficiency of online transactions.

Setting Up a Payment Gateway Account: What You Need in 2024

Setting up a payment gateway account involves providing some essential details about your business. Although requirements can vary depending on the provider, here are the common elements you’ll need to get started:

Business Information

• Business Type: Describe the nature of your business. Are you selling products, offering services, or running a non-profit?
• Company Name: The official name of your business as registered.

Contact Information

• Country: Specify the country where your business is based.
• Website URL: Provide the link to your business website.
• Phone Number: The primary contact number for your business.
• Email Address: An email address that will be used for the account and for customer communications.

Legal Documentation

• Refund Policy Link: Share a link to your refund policy page on your website. This is important to show how you handle customer refunds.
• Certificate of Incorporation: A copy of your business’s incorporation certificate to prove your legal status.
• Director’s ID: Identification for one or more directors of the company, such as a passport or national ID card.
• PIN Certificate: Your business’s Personal Identification Number certificate, usually required for tax purposes.

Additional Details

• Phone Number for Account: The contact number specifically for managing the payment gateway account, which might be different from your general business contact number.

Conclusion on Payment Gateways in Kenya

In Kenya, payment gateways are essential tools for modern businesses, enabling smooth, secure, and efficient transactions. By integrating a reliable payment gateway, businesses can offer a seamless shopping experience with diverse payment options like credit/debit cards and mobile money services such as Mpesa and Airtel Money. This not only enhances customer satisfaction and convenience but also boosts sales by catering to a wider range of payment preferences.

Moreover, the advanced security features provided by reputable payment gateways protect customer data and ensure compliance with regulatory requirements, building trust and credibility. Automated processes further streamline transaction management, reducing errors and freeing up time for business growth. In essence, adopting a robust payment gateway is a strategic move that can significantly improve the operational efficiency and market reach of businesses in Kenya fostering long-term success in the competitive online marketplace.