E-payments to stir business growth

By FREDRICK OBURA

Airlines, hotels, travel agencies and businesses targeting Internet for growth could soon experience booming business.

The development follows rise in number of online payment systems competing to engage offshore electronic gateways to receive money on behalf of local merchants.

Besides raising the cost of online transactions, use of traditional offshore gateways to settle payments made locally also means the businesses had to endure a certain grace period before receiving the cash and often incur heavy losses in the event of exchange rate fluctuations.

Budding software firms Pesa pal, iPay, 3G direct pay, NightsBridge, iVeri, and Amadeus have launched different solutions locally to help both enterprises and consumers enjoy online shopping experience.

Revenue stream

Thanks to a partnership between Chartis Insurance Company and Amadeus — a travel technology company — travellers will now be able to electronically access and facilitate the cover of eventualities like personal accident, baggage loss and travel cancellation.

Chartis’ travel products would be integrated into Amadeus selling platform and distributed electronically, offering agents in Kenya an important source of additional revenue.

"Through the Automatic Insurance Proposal, the system automatically proposes insurance product upon completion of a quoted air booking," says Chartis Kenya Insurance Chief Executive Japh Olende.

"The system picks necessary data directly from passenger record."

"Because travel insurance is continuously becoming mandatory before entry into some countries, the system would enable us to conveniently reach many travellers, and save them time," he says.

According to Intrepid Data Systems Consultant Phillip Nyamweya, more solutions targeting the relatively young e-commerce sector are set to be launched in coming months.

Homegrown

This would include homegrown e-payment solutions to avoid re-routing of cash to foreign countries before the actual settlement.

"The emergence of affordable and abundant infrastructure like the Internet, mobile phones and computers are likely to influence various traditional culture," says Phillip Nyamweya Consultant Intrepid Data Systems.

"Hotel reservation, air ticketing, insurance booking among other services are likely to attract interest in Internet investment,’ he says.

Nyamweya says local companies in e-commerce business such as the Kalahari, mzoori, online duqa would now realise remarkable profits with home-grown payment solutions compared to margins realised through the use of offshore gateway solution.

Last year, KCB announced a partnership with Nights Bridge Software Company to introduce an online payment solution targeting the tourism sector in East Africa.

The payment software will enable the bank provide real-time connectivity to hotels, guesthouses, and facilitate booking and payment ability via the Internet.KCB, which is, a big player on the card-acquiring front will use this new platform to grow its Internet Acquiring end.

Internet Acquiring is the process of collecting, switching and authorising financial transactions originating from the Internet.

KCB deputy Chief Executive Peter Munyiri said the product would herald the bank’s entry into the budding e-commerce sector.