Kenswitch taps PayU's Wibmo to secure Kenya's online card payments
What's the deal? KenswitchDealroom has a profile for this one. Try Dealroom →, Kenya's domestic payment switch, has partnered with WibmoDealroom has a profile for this one. Try Dealroom →, a PayUDealroom has a profile for this one. Try Dealroom → company, to strengthen authentication for online card payments routed through local infrastructure. The deal gives financial institutions connected to Kenswitch access to Wibmo's Access Control Server (ACS), which uses EMV 3-D Secure technology to verify that online purchases are made by authorised cardholders.
How it works: The system assesses transaction risk in real time, deciding whether a payment can proceed or whether the cardholder must authenticate. Supported methods include one-time passwords, biometrics and push-based approvals, depending on the issuer's implementation.
Why now? Card-fraud losses in Kenya jumped to US$2.56M in 2024, up from US$151.9K in 2023, according to Central Bank of Kenya figures. Most card transactions are currently acquired outside Kenya, limiting local fraud monitoring and support for banks when problems arise.
What's the endgame? Kenswitch wants to shift online card processing and fraud monitoring closer to home. It says this could cut banks' and merchants' costs by 50 to 60 percent — a company estimate, not a demonstrated saving.
The move builds on Kenswitch's broader push into domestic card infrastructure, including a local card scheme launched as an alternative to Visa and Mastercard. Its network covers more than 2,500 ATMs, 50,000 point-of-sale terminals and 80,000 agents, connecting banks, SACCOs, microfinance institutions and mobile money providers.
What they said: "Our partnership with Wibmo positions Kenswitch to deliver international-standard authentication solutions to banks connected to the Kenswitch network," said John Mukono, chief executive officer of Kenswitch.
The signal: The deal reflects a wider effort across African markets to build domestic payment rails that reduce reliance on foreign processors. Its impact will depend on issuer uptake, integration, and whether the promised cost and fraud reductions actually follow.
Read more: gradientebusiness.com
Image credit: nenadstojkovicart
