Payments Are Reshaping Kenya’s Platform Economy

Payments Are Reshaping Kenya’s Platform Economy

In recent weeks, an important shift has emerged in Kenya’s digital economy. Uber cancelled Visa payments in the country, signalling growing pressure on payment economics for global digital platforms operating locally.

Notably, the decision followed an internal cost review. It also shows how payment rails now sit at the centre of margins, pricing, and scalability.

For platforms processing millions of low-value transactions, small fee differences quickly add up. In Kenya, international card payments attract higher processing and settlement costs than local options.

By contrast, mobile money settles faster and locally. At scale, this cost gap becomes significant and difficult to ignore.

Platforms Reassess Cost Versus Flexibility

As a result, Uber’s move has reopened debate across the sector. Ride-hailing, food delivery, e-commerce, and subscription platforms now face similar choices. On one hand, they can support multiple payment methods and absorb higher costs. On the other, they can streamline options to protect margins and unit economics.

Meanwhile, competitors are making different calls. A Glovo spokesperson noted that the platform continues to accept all payment methods, including Visa, Mastercard, Google Pay, Apple Pay, M-Pesa, and cash. According to the company, this approach prioritises convenience and customer choice.

Furthermore, Glovo emphasised that card payments remain material to its business in Kenya.

Card transactions account for a significant share of platform activity, driven largely by corporate users, higher-value orders, and cross-border customers. Consequently, maintaining card acceptance supports revenue diversity and access to premium segments.

Mobile Money Gains Leverage

This contrast highlights how platforms are making different strategic bets in the same market. Some prioritise cost efficiency and local volume. Others compete on flexibility, customer breadth, and long-term value, even when processing costs are higher.

The broader payments landscape in Kenya explains these dynamics. Mobile money dominates daily transactions. It offers instant settlement, predictable fees, and deep consumer trust.

For platforms, this reduces foreign exchange exposure and chargeback risk. In addition, telcos provide scale and distribution, with M-Pesa connecting millions of users and merchants across sectors.

However, card networks still play a critical role. Mastercard and Visa remain essential for corporate travel, international visitors, subscriptions, and higher-value digital spending.

At the same time, virtual cards linked to mobile wallets continue to narrow the gap between local and global payment rails. Digital wallets such as Apple Pay and Google Pay are also gaining traction among urban users.

Payments Are Reshaping Kenya’s Platform Economy

Payment Strategy Becomes Competitive Strategy

What is changing, therefore, is leverage. As mobile money volumes grow, platforms gain stronger negotiating power. In response, card networks face pressure to localise pricing and settlement structures.

Meanwhile, telcos strengthen their influence in digital commerce. Increasingly, payment choice reflects competitive strategy rather than technical capability.

Looking ahead, Uber’s decision is unlikely to remain isolated. Other platforms are reviewing their payment mixes as margins tighten and investor scrutiny intensifies.

At the same time, Glovo’s approach presents an alternative path, where absorbing higher costs supports growth, retention, and higher-value demand.

Notably, Glovo has adopted a partnership-led payment strategy. The platform works with card networks, mobile money providers, and digital wallets to serve diverse user preferences.

It also uses targeted incentives to drive adoption across payment tiers. For instance, the app is currently running a 20 per cent discount for customers paying with Mastercard.

Ultimately, by integrating multiple payment platforms and aligning them with pricing incentives, platforms aim to reduce friction at checkout while meeting customers where they are.

In Kenya’s platform economy, payments no longer sit in the background. Instead, they now shape margins, partnerships, and customer loyalty. For global platforms, how users pay has become just as strategic as what they buy.