Kenya Commercial Bank has launched an on-line payment solution targeting the tourism sector as e-commerce takes root in the country.The solution speeds up and make reservation and management of online payments easier for service providers, with KCB following in the footsteps of I&M Bank, which launched a payment gateway earlier this year.

“Tourism has a big value chain and this payment solution will help players secure payments,” said Mr Peter Munyiri, KCB’s deputy CEO, adding that the product will help the sector embrace e-commerce.The tourism industry is the largest consumer of e-commerce globally, with service providers like hotels, tour operators, museums and airlines embracing it.

The development of these products by the local acquiring banks has been long overdue and comes at a time when the industry is increasingly turning to the internet to increase operational efficiency and meet the demands of inbound tourists who are turning to the web for both information and bookings.

Previously sector players had to use off-shore electronic gateways to facilitate e-commerce as the country had no legal framework. The passing of the Communication Act paved the way for the uptake of e-commerce in the country. “It is catching on slowly as service providers are opening up their eyes on seeing how they can use the service,” said Mr Suprio Singupta, I&M’s general manager of marketing and product development, adding that players in the hotel industry were the main customers.

The move by the Government to roll out a five year strategic plan to place the public sector on online transactions is further expected to boost e-commerce. “This will definitely start demystifying electronic commerce and increase its uptake both among the public and private sector and we expect swift growth,” Mr Munyiri said.

KCB intends to use this products and expertise as an acquiring bank to target online consumers especially in the service sector and opted to partner with NightsBridge, a software firm, to provide international connectivity. Hotels are able to receive payments in advance thus protecting themselves from defaulters and allows for better planning.

A commission is paid on the transactions, approximately five per cent, though properties with high volumes are able to get lower rates. The gateway was launched at the ongoing East Africa e-tourism conference that has brought together sector players and online giants like Expedia, Trip-Advisor and Where Are You Now (WAYN).

 

 

 

 

 

 

.