Kenya’s digital payment sector is set to get a security boost after Kenswitch and Wibmo (a PayU company) joined forces. The collaboration will increase the protection of online card transactions by introducing advanced authentication technology for financial institutions connected to the Kenswitch network.
The partnership will give participating financial institutions access to Wibmo’s Access Control Server (ACS), which uses EMV 3-D Secure technology for online card payments authentication.
It helps banks and card issuers verify the identity of customers making online purchases so unauthorised transactions and payment fraud are reduced.
More and more people are shopping online and using digital payments so security becomes even more important. The collaboration aims to address these concerns by bringing internationally recognised authentication standards into Kenya’s domestic payment system.
Advanced Technology for Safer Online Transactions
With the integration Kenswitch will extend its online acquiring infrastructure with transaction security capabilities. The system will monitor payment activity in real time and determine whether a transaction can go through or if further customer verification is required.
Depending on how participating financial institutions implement the program, customers may be asked to authenticate payments using OTPS (one-time passwords), biometric verification or push notifications.
The risk-based authentication approach is supposed to increase security without making customers’ lives harder. Low risk transactions can continue with little interruption while payments that need more scrutiny can be further verified.
The technology also supports major international payment networks (Visa and Mastercard). This will help participating banks align their online payment security systems to widely accepted global standards.
Benefits for Banks, Merchants and Customers
The partnership will benefit Kenya’s entire digital payment ecosystem financial institutions will have better card authentication capabilities; merchants could be more confident in online payments processing.
The verification measures are supposed to give customers more protection when they use their payment cards for purchases on e-commerce sites.
The partnership also highlights the importance of technology-driven fraud prevention as digital transactions grow across African markets.
Strengthening Kenya's Payment Infrastructure
Kenwitch CEO John Mukono said the partnership would give financial institutions on Kenswitch’s network access to internationally recognised authentication solutions and added that “stronger security needs to be combined with convenient payment experiences”.
Wibmo CEO Shailesh Paul welcomed the partnership saying that the company’s authentication technology would help Kenswitch build a more secure and reliable digital payment environment.
Kenswitch is regulated by the Central Bank of Kenya and connects banks, SACCOs, microfinance institutions and mobile money service providers; it has more than 2500 ATMs, 5000 point-of-sale terminals and 8000 agents infrastructure in addition to digital payment and e-commerce services.
The partnership brings together Kenswitch’s domestic payment network and Wibmo’s authentication expertise to enhance the reliability of online card transactions in Kenya.
The initiative comes as financial institutions are increasingly focused on protecting customers from digital payment risks. Its wider reach will depend on whether participating banks adopt the technology and the authentication system is successfully integrated across the network.
All in all, the partnership is another step in Kenya’s journey to build a safer and more efficient digital payment ecosystem that supports its growing online commerce sector.
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