Kenyans now make less use of Automated Teller Machines (ATMs) and have instead shifted their transactions to mobile payments and other cashless platforms, says data from the Central Bank of Kenya (CBK).
For instance, the value of transactions, using prepaid cards at the ATMs stood at KSh 194.25 Million in March 2020 compared to KSh 180 Million in December 2020.
Value of cash moved through the use of credit cards at the ATM also declined from KSh 611 Million to KSh 579 Million between March and December 2020.
Decline in volume at ATMs
As a result of these reductions in business volume at the ATMs, banks lost a substantial fee from the card payment business using prepaid and credit cards.
There are three credit card accounts: bank-issued ones such as VISA and MasterCard, supermarket/priority cards, and travel/entertainment cards also called charge cards such as American Express or Diner’s Club.
Central Bank figures also show that the value of transactions using debit cards at the ATMs stood at KSh51,309 Million in March 2020, rising to KSh 70,206 Million in December 2020.
During the same period, figures on mobile payments from CBK show that cash moved through mobile cash agents stood at 150.7 Million of a total value of 364.5 Billion in March 2020. These figures went up to 181.4 Million and KSh 605.7 Billion in volume and value respectively in December 2020.
The total registered number of mobile money accounts also edged up from 58.7 Million to 66 Million between March and December 2020.
ALSO READ:
Citi Downgrades Safaricom Stock Due to Regulatory Uncertainty
Kenya’s Central Bank Announces Expiry of Waivers for Mobile Money Transactions
