Citi, Visa, and Cellulant have announced a new partnership to launch Citi Optimized Pay, a supply chain finance platform designed to improve cash flow management for small and medium-sized enterprises (SMEs) in Kenya. The platform leverages Tingg, Cellulant’s payment gateway, to enable faster and more flexible supplier payments — a crucial development in a market where delayed payments and limited financing options continue to hinder small business growth.
The Citi Optimized Pay platform will allow Citi’s corporate clients to make payments to suppliers directly using commercial cards, while suppliers will have the flexibility to receive funds via bank accounts or mobile wallets. This innovation combines the strengths of Citi’s global banking expertise, Visa’s digital payments infrastructure, and Cellulant’s localized payment processing capabilities.
The Supply Chain Finance Gap in Kenya
According to the International Finance Corporation (IFC), Kenya’s Supply Chain Finance (SCF) market is valued at approximately USD 24.8 billion annually, equivalent to about 25.1% of Kenya’s Gross Domestic Product (GDP). However, current financing solutions address only 7% to 10% of this demand, leaving a significant funding gap that constrains small businesses’ ability to grow and manage their operations smoothly.
With Citi Optimized Pay, the partners aim to bridge this gap by making supply chain financing more accessible, especially for smaller suppliers who often face payment delays ranging from 60 to 90 days, putting immense pressure on their working capital.
Key Features of Citi Optimized Pay
1. Seamless Onboarding
The platform offers an optimized onboarding process for both buyers (corporate clients) and suppliers, ensuring quick and efficient registration. This reduces friction in supplier-buyer transactions and helps small businesses plug into a more reliable payments ecosystem.
2. Multiple Payout Options
Suppliers will have the flexibility to receive payments via:
- Bank accounts
- Mobile wallets
This flexibility ensures that businesses can choose the payment method that best fits their needs, reducing barriers to financial inclusion.
3. Enhanced Efficiency and Automation
The platform automates accounts payable processes, ensuring faster and more accurate payment reconciliation. This automation helps corporate clients manage working capital more effectively, while ensuring suppliers are paid faster, enhancing overall supply chain stability.
4. Improved Cash Flow for Small Businesses
Delayed payments have long been a challenge for SMEs. Citi Optimized Pay ensures:
- Faster payments, reducing the waiting period for suppliers.
- More predictable cash flow, allowing businesses to plan better and invest in growth opportunities.
- Greater financial stability, helping businesses withstand unexpected economic shocks.
Importance for Kenya’s SMEs
Small businesses account for approximately 80% of all businesses in Kenya, making them the backbone of the economy. Despite their importance, many of these businesses struggle with delayed payments and limited access to affordable credit. By accelerating payments through commercial card-based transactions, Citi Optimized Pay aims to strengthen the financial health of these businesses, enabling them to:
- Cover operational expenses without resorting to expensive loans.
- Invest in inventory and expansion.
- Build stronger relationships with larger corporate buyers.
What Visa, Citi, and Cellulant Say
Visa’s Commitment to Empowering Businesses
Chad Pollock, Visa East Africa Vice President and General Manager, highlighted that Citi Optimized Pay fits into Visa’s broader commitment to equipping businesses with tools to thrive in the digital economy. By streamlining supply chain payments, Visa aims to reduce friction in business transactions and promote digital financial inclusion.
Citi’s Focus on Financial Health and Inclusion
David Li, Middle East and Africa Cards Head at Citi, emphasized that supply chain finance solutions are vital for emerging markets like Kenya. Improved access to working capital strengthens entire supply chains, creates jobs, and contributes to overall economic growth and stability.
Cellulant’s Payment Innovation
Peter O’Toole, Group CEO at Cellulant, noted that co-creating Citi Optimized Pay aligns with Cellulant’s mission of delivering seamless, secure, and localized payment solutions for businesses across Africa. By addressing cash flow challenges at the supplier level, Cellulant believes the platform will unlock long-term economic growth for businesses at all levels of the supply chain.
Future Enhancements and Continuous Evolution
Darren Parslow, Global Head of Visa Commercial Solutions, confirmed that Citi Optimized Pay is just the beginning. Visa plans to continually enhance the platform with new features that add more value to both buyers and suppliers, further optimizing supply chain financing for businesses in Kenya and across the region.
Why Supply Chain Finance Matters for Kenya’s Economy
Addressing Payment Delays
Delayed payments are one of the biggest barriers to small business growth in Kenya. Citi Optimized Pay directly addresses this by:
- Ensuring timely disbursements.
- Reducing reliance on expensive short-term loans.
- Improving working capital cycles for suppliers.
Driving Financial Inclusion
By providing multiple payment options, including mobile wallets, the platform increases financial inclusion, especially for small suppliers who may not have formal banking relationships.
Strengthening Supply Chains
When suppliers receive payments faster, they can reinvest in production, secure better terms with their own suppliers, and participate more actively in corporate supply chains. This ultimately makes Kenya’s entire supply chain ecosystem more resilient.
Promoting Economic Growth
With SMEs contributing the bulk of Kenya’s GDP, improving their financial health has far-reaching impacts, including:
- Job creation.
- Higher tax contributions.
- More competitive domestic supply chains.
Final Thoughts
The launch of Citi Optimized Pay marks an important step in modernizing supply chain financing in Kenya. By combining commercial cards, digital payment channels, and supply chain automation, the solution addresses some of the most pressing cash flow challenges facing SMEs today.
As Kenya’s digital economy grows, such innovations will play a critical role in ensuring that small businesses thrive, financial inclusion expands, and corporate supply chains become more resilient. The collaboration between Citi, Visa, and Cellulant highlights the importance of partnerships in building solutions that deliver value across the entire supply chain.
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