Nairobi, January 14- Ride-hailing firm Uber has discontinued the use of Visa cards as a payment option in Kenya, a move that strengthens the position of local payment providers. The change, which took effect in December, means riders can now pay using mobile money platforms such as M-Pesa and Airtel Money, as well as cash and bank-linked options.
The company cited rising global transaction costs as the main reason for dropping Visa payments. Many Visa transactions were previously processed outside Kenya, exposing Uber to foreign exchange losses, card network fees and additional cross-border charges. In contrast, local payment methods are settled instantly in Kenyan shillings, making them more cost-effective.
Kenya’s strong mobile money ecosystem has made digital wallets the preferred choice for most daily transactions. Uber’s integration with mobile money services allows for seamless payments from riders and quicker payouts to drivers, while also reducing challenges such as chargebacks and disputed card transactions.
Despite the benefits to local payment companies, the decision may inconvenience some users, particularly corporate clients and foreign visitors who prefer card payments for rewards, expense tracking and convenience. While other payment options remain available, the move highlights how cost considerations and local payment habits continue to shape the country’s digital transport and technology landscape.
