Pesalink 2024 Data Shows Kenyans Value Speed Over Rewards in Instant Payments

Kenya’s instant payment landscape is rapidly evolving, with new data from Pesalink’s 2024 Usage & Attitude Survey offering deep insights into how Kenyans choose and use payment methods. The survey, commissioned by Pesalink operator, Integrated Payment Services Limited (IPSL), paints a clear picture of a fast-changing digital payments environment where speed, convenience, and seamless cross-platform interoperability are top priorities for users.

With mobile apps and USSD channels dominating account-to-account (A2A) transfers, and a growing segment of users banking with multiple institutions, the findings highlight opportunities and challenges for banks, fintechs, and regulators alike. Here’s a comprehensive breakdown of the key insights and implications from the survey.

Multi-Banked Kenyans Demand Seamless Experiences

One of the standout findings of the 2024 Pesalink survey is the extent to which Kenyans spread their finances across multiple banks. 57% of users rely on more than one bank for their instant payments, with 28% using two banks, 19% using three banks, and 10% using four or more banks. This multi-banked behaviour signals growing consumer demand for flexibility, choice, and access to the best possible rates, fees, and services across different financial institutions.

This trend also underscores the need for seamless interoperability between banks and other financial players, ensuring users can move funds freely and instantly across the ecosystem, regardless of where they hold their accounts. Pesalink’s interoperable framework is well-positioned to meet this need by offering instant transfers between banks, fintech wallets, SACCOs, and even telcos.

Mobile Apps and USSD Overtake Cash and Cards

The survey confirms that Kenya’s payments ecosystem has decisively shifted away from cash and cards. Today, mobile banking apps and USSD services account for over 90% of instant account-to-account transactions, while cash and card payments combined account for just 8%.

The widespread adoption of mobile-first banking services reflects broader digital transformation trends, with banks and fintechs investing heavily in user-friendly apps and USSD interfaces to meet demand for instant, on-the-go payments. With 41.54% of users preferring mobile banking apps and 50.15% opting for mobile money platforms, the lines between traditional banking and mobile money services continue to blur.

Speed and Convenience Outrank Cost and Rewards

When it comes to selecting a preferred payment method, speed and convenience are the dominant factors influencing Kenyan consumers’ decisions. According to the survey, 64% of users rank convenience as their top priority, followed closely by 60% who prioritise faster payments.

Interestingly, traditional loyalty rewards and incentives, long considered vital in banking and payments, ranked at just 3% in importance. This indicates that Kenyans increasingly value payment services that deliver practical value in the form of quicker transactions and easier experiences over perks like cashback or loyalty points.

This shift in preference places pressure on financial service providers to focus on optimising payment experiences, reducing friction, and ensuring that payments happen in real-time, regardless of the bank or platform being used.

Privacy and Security Expectations

Despite the strong emphasis on speed and convenience, privacy and security remain critical considerations for Kenyan consumers. The survey found that 58% of users consider data security and privacy protections essential when choosing how to make payments.

This dual demand for both convenience and strong security highlights the challenge for banks and fintechs — they must balance ease of use with robust authentication and data protection measures to win and retain user trust.

Mobile Banking Apps Gaining Ground on Mobile Money

While mobile money wallets remain slightly ahead in terms of regular usage, mobile banking apps are closing the gap quickly. The survey shows that 41.54% of users now favour banking apps for their regular payments, compared to 50.15% who still prefer mobile money platforms.

This shift reflects growing confidence in bank apps, especially as more banks enhance their digital platforms with improved user interfaces, faster processing speeds, and lower transaction fees. For banks, this trend presents a major opportunity to capture payment volumes directly on their platforms rather than ceding ground to telco-operated wallets.

To fully capitalise, banks need to prioritise the seamless integration of Pesalink within their apps, ensuring users can initiate instant account-to-account transfers with minimal steps, clear fee structures, and full visibility on transaction status.

The Role of CBK and the Fast Payments System (FPS)

The survey also points to a growing industry-wide need for improved payment infrastructure, particularly in the area of interoperability. To address this, the Central Bank of Kenya (CBK) is championing the Fast Payments System (FPS), designed to:

• Eliminate the need for expensive bilateral agreements between banks.
• Enable seamless, instant transfers across all financial institutions, including banks, fintechs, SACCOs, and telcos.
• Reduce costs for consumers by creating a level playing field for all players.

The FPS initiative aligns closely with Pesalink’s existing role as an open, interoperable network, and offers a clear pathway for the industry to standardise user experiences, enhance security, and drive down costs for instant payments.

The Future of Payments: Speed, Transparency, and Integration

The Pesalink 2024 Usage & Attitude Survey offers a valuable roadmap for the future of digital payments in Kenya. It highlights how:

• Speed, convenience, and seamless integration across platforms will be the primary battleground for banks and fintechs.
• Transparency around fees will become a competitive differentiator, as consumers actively compare pricing across banks.
• Mobile banking apps will play an increasingly central role in instant payments, presenting banks with a golden opportunity to own the customer relationship.

At the same time, the importance of privacy and security will only grow, requiring continuous investment in data protection and fraud prevention measures.

For financial institutions and fintech players, success will hinge on delivering payment experiences that are faster, simpler, safer, and more cost-effective — all while ensuring users can move their money freely across Kenya’s rapidly evolving digital financial ecosystem.