Introduction to Online Payments in Kenya
The transfer of money online has become widely accepted globally. Most people find it easy to transfer their money through wireless methods regardless of their location. A few times back, one had to transfer the money physically to the desired bank, but online payment has made it easy for people and businesses.
But what most people don’t know or take into consideration is the cost of transfer and the security measures taken by the preferred payment platform to avoid problems like fraud. The rise of payment via online has had a positive impact and has helped many businesses to thrive and made work easier. Online payment is being widely accepted and businesses are finding it easy to receive payments and pay bills using secure online payment platforms in Kenya without necessarily being physically present. In this article, we will take you through various online payment platforms in Kenya and the factors to consider while choosing them.
Glossary of Key Terms used in online payment
| Term | Meaning |
|---|---|
| KYC | Know Your Customer – verification process to prevent fraud. |
| API | Application Programming Interface – allows platforms to connect apps. |
| E-wallet | A digital wallet that stores money for online transactions. |
| PCI DSS | Payment Card Industry Data Security Standard – security compliance for handling card data. |
| 2FA | Two-Factor Authentication – extra layer of security when logging in. |
| P2P | Peer-to-Peer – direct money transfer between users. |
| Settlement | The process of transferring funds from one party to another post-transaction. |
| Chargeback | A reversal of a payment after dispute, often seen in card transactions. |
Global payment solutions
a) Paypal
PayPal is one of the most common and widely accepted secure online payment platforms in Kenya. It enables online writers to send and receive money from clients online in over two hundred countries. Linking your bank account to your PayPal account and receiving money in a few days is what makes most people widely accept it.
How to set up
- Create a PayPal account in PayPal.com.
- Link it to our M-Pesa using PayPal Mobile Money.
- Verify your account and start transacting.
Payoneer
This is a payment platform that allows the transfer of money from a client to a freelancer in over two hundred currencies. Individuals and businesses can withdraw their money directly from their local banks.
How to set up
- sign up at payoneer.com.
- complete the KYC verification.
- Link your bank account to your payonneer acount.
c) Skrill
Skrill is one of online payment platforms in Kenya that transfers money fast and instantly to freelancers and businesses at large. It offers low transaction fees and also buys crypto with a digital wallet. For security purposes, the user’s accounts are protected from fraud and malicious activities through two-factor authentication and encryption.
d) Authorize.net
This payment system offers a variety of payment processes based on the customer’s preferences. They include card readers, virtual terminals, manual orders, and others.
It is also equipped with a fraud prevention tool and reliable and detailed reporting.
f) 2Checkout
Now known as Verifone, it is a payment system that allows writers and businesses to receive money in different methods, like credit cards. It is among the online payment platforms in Kenya that supports payment in different currencies via debit and credit cards and mobile payment. However, you cannot link a Kenyan bank account directly to 2Checkout for automatic withdrawals unless it is through a supported partner like Payoneer or Wise.
g) Veem
Veem is a payment platform that facilitates secure online payment, particularly for small businesses. It also offers the ability to send and receive money in local currencies.
h) TransferGo
This is an international money transfer that offers a range of money transfer services without excessive bank fees.
i) Direct bank transfer
A secure way to send money directly between bank accounts and a fundamental option among payment platforms, it does not require an intermediary. Transfers can be made via mobile apps, bank branches or even USSD.
j) Paysimple
This is a payment platform that facilitates the transfer of money from a client to a writer online. It also has customized, secure ASPs, including direct debit and credit card processing and recurring billing at some of the lowest available rates.
k) Xoom
An international money transfer method that allows people and businesses to send and receive money easily, quickly, and affordably.
l) Escrow.com
Acts as a third-party facilitator to ensure secure transactions between two parties—valuable among specialized online payment platforms in Kenya. It is mostly used in high-value transactions to prevent fraud.
m) Cryptocurrency
Cryptocurrency is a peer-to-peer digital payment system that does not rely on banks to verify financial transactions. It is stored in digital wallets and is deal for decentralized transactions and accepted in some payment platforms
n) AirTM
A payment platform used for sending, receiving, and storing money in different currencies. This is one of the online payment platforms in Kenya that allows users to buy USDT in AirTM USD.
o) Google wallet
Stores payment cards, loyalty cards, and IDs securely. It supports contactless payments via NFC, as well as online and in-app purchases of goods and services. It works with debit/credit cards and bank accounts in supported regions if linked to your Google Account.
p) Adyen
Accepts credit/debit cards and local payment methods like M-Pesa. This flexibility makes it one of the global secure online payment platforms in Kenya. Known for its powerful backend, it offers unified commerce solutions with detailed analytics and fraud prevention tools.
q) JamboPay
Offers secure fund transfers, bill payments, and mobile wallet integration. It supports services like e-government payments, utility bills and business transactions. It comes with APIs and plugins, which makes it ideal for money transfer. it also plays a crucial role in role in government and institutional payments.
How to Set Up:
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Visit pesapal.com.
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Register and set up your account.
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Integrate payment methods and start transacting.
r) Ipay Africa
Supports various local payment options, including M-Pesa, Airtel Money, card payments, and PesaLink. It’s one of the most versatile online payment platforms in Kenya and it provides its users with tools for invoicing, reporting and recurring payments.
Online payment platforms in Kenya.
i) Pesapal.
Clients can make payments either through mobile money, card or mobile banking using Pesapal, as one of the online payment platforms in Kenya. Pesapal supports cards, mobile money, and POS terminals.
ii) M-Pesa.
A mobile-based money transfer platform launched by Safaricom and Vodafone, it is the largest mobile operator in Kenya. Customers can deposit and withdraw their earnings at any time and are offered a flexible and affordable fee. This is among the most accepted and easy- to-use online payment platforms in Kenya.
How to set up
- Dial *840# to activate M-Pesa global.
- Use Safaricom website or M-Pesa app as an alternative.
iii) Wise
One of the online payment platforms in Kenya known for its low cost and affordability.it is available across 70+ countries. This platform protects its users from any hidden fees. Wise uses real exchange rates, unlike PayPal.
How to set up
- Register at wise.com.
- verify your identity.
- add your kenyan bank account and start trsnsacting.
iv) Airtel Money
A mobile-based money transfer system used in Kenya allows people to send and receive money and purchase goods and services. It is convenient and offers a flexible, transaction-friendly fee. This form of online payment in Kenya enables users to receive money through peer-to-peer transfer, bill payment and financial transactions all over the country. Airtel Money integrates with bank accounts and utility services.
Kenya has seen tremendous growth in digital transactions, driven by the rise of online payment platforms in Kenya. Among the most popular and reliable online payment platforms in Kenya are M-Pesa, Airtel Money, and PesaLink, all of which provide fast, reliable, secure and convenient ways to transfer money. M-Pesa, the leading mobile money service, has become almost synonymous with online payment platforms in Kenya, offering widespread compatibility with local banks, businesses and global apps. Airtel Money is another strong contender in the list of online payment platforms in Kenya, especially for users looking for competitive transaction fees and integration with banking services. Meanwhile, PesaLink stands out among payment platforms in Kenya by enabling real-time bank-to-bank transfers 24/7.
These three—M-Pesa, Airtel Money, and PesaLink—form the backbone of most secure payment platforms in Kenya, serving both individuals and businesses. Whether you’re paying for goods online, receiving freelance payments, or transferring money to friends and family, these platforms make the process simple and efficient. As digital finance continues to grow, it’s clear that online payment platforms in Kenya will remain essential to daily life, with M-Pesa, Airtel Money and PesaLink leading the way.
Tips for receiving online payments safely
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Always use verified platforms.
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Avoid sharing sensitive account information with anyone.
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Keep records of invoices and payments in case of any missunderstanding.
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Confirm transaction fees and exchange rates before withdrawing.
- Consider having both M-Pesa and a bank account for flexibility during local and international payments.
- Use strong, unique passwords and enable 2FA where available to safeguard your finances.
Payment gateways
These are essential services that authorize and process credit cards, debit cards, and other online payment modes for transactions.
i) Types of payment gateways in Kenya
a) Hosted payment gateway
Customers are redirected to the gateway’s secure page for payment then back to the merchant
b) integrated (direct/on-site)
This gateway keeps customers on the merchant’s site for payment through APIs. It requires developer skills and strong data security measures.
c) Self-hosted gateway
You must collect and submit payment data from your own gateway and are given full control of user experience and checkout flow. This gateway is best for large businesses with robust data security systems.
d) Mobile payment gateway
This type of gateway is developed for mobile devices and apps using mobile money, and it supports quick payments via smartphones.
e) regional gateway
Designed for specific regions or countries with local banks and accepts currencies and payment methods familiar to them.
Factors to consider when choosing online payment platforms in Kenya
One should choose a platform that best suits their business to enhance customer satisfaction. Here are some of the key factors to consider when choosing an online payment platform.
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Security and compliance
Make sure that the platform you wish to make payments with adheres to the Payment Card Industry Data Security Standard to protect your data.
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Encryption and fraud detection
Look for features like encryption to help you safeguard your information and transactional information. Also, ensure you look for tools to help you identify and prevent fraudulent activities.
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Card payment
Ensure that your payment method of choice supports major cards like credit cards and debit cards.
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Mobile money
Consider choosing platforms that support mobile money options.
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Transaction fee
Choose an online platform where the charges will not be a burden to you or your client.
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Other fees
Beware of potential refund fees or international transactions.
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Transparency in charges
Choose a system that provides a clear and transparent fee structure.
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Responsiveness to customer service
Reliable customer support is key in case need arises
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Multiple currency support
Choose a platform that supports currencies from different countries.
CBK-Licensed or Supported online Payment Providers in Kenya (as of 2025):
Here s a list of CBK-approved platforms
| Provider | Type | Local Bank Support | Licensed / Supported by CBK |
|---|---|---|---|
| M-Pesa | Mobile money | Yes (e.g., KCB, Equity) | ✅ Yes |
| Airtel Money | Mobile money | Yes | ✅ Yes |
| PesaLink | Bank-to-bank transfer | Yes (all major banks) | ✅ Yes |
| Pesapal | Payment gateway | Yes | ✅ Licensed (PSS/PSP license) |
| iPay Africa | Payment gateway | Yes | ✅ Licensed |
| PayPal (via Equity) | Global e-wallet | Yes (Equity Bank) | ✅ Supported via Equity |
| Payoneer | Global payout platform | Yes (Equity, Co-op) | ✅ Supported (via bank partners) |
| Wise | Cross-border payment | Yes (indirectly) | ✅ Supported |
| JamboPay | Payment gateway | Yes | ✅ Licensed |
Regulations affecting online payment ( CBK Guidlines)
Freelancers who receive money from international clients are requires to comply with CBK regulations. the Central Bank only permits the use of licensed online payment platforms in Kenya like PayPal via equity Bank, payoneer etc. using unlicenced platforms may lead to delayed transactions or even blocked transactions.
Writers are also required to declare income to KRA and file annual tax returns. Mobile money services like M-Pesa have daily transaction limits (e.g., Ksh 500,000) so higher earnings may require a bank account with larger transfer capacity. To stay compliant, use approved online payment platforms in Kenya, keep track of all payments and meet your tax obligations and guidelines provided.
FAQ
Which payment method is most successful?
Card payment: almost 49% of the world’s population use debit cards
Which is the best payment system for a small business?
PayPal, Square, Stripe, Google, and Apple Pay.
Conclusion
Choosing the right digital payment solutions depends on your specific needs. Whether you’re a freelancer receiving international payments, a small business owner handling local transactions, or an e-commerce vendor serving both. Platforms like PayPal (via Equity Bank), Payoneer and Wise are ideal for cross-border transactions, while M-Pesa, Airtel Money, Pesapal, and iPay Africa provide efficient and cost-effective local solutions. Always consider key factors such as CBK licensing, security features, transaction fees, mobile accessibility, and multi-currency support.
Kenya continues to lead Africa in mobile and digital finance, with innovations like M-Pesa Global, PesaLink, and widespread mobile money integration driving financial inclusion. As digital payments become more essential in daily life and business, selecting a secure, scalable, and compliant platform is crucial. Choose a system that aligns with your workflow, keeps your transactions safe, and supports both growth and regulatory compliance in Kenya’s fast-evolving digital economy.