Looking for the best online payment gateways in Kenya? You’ve come to the right place! We’ve put together the best options to make online transactions easier and more secure. Keep reading to discover the our recommended online payment services in Kenya for 2024!
What is a payment gateway?
A payment gateway is a technology that allows merchants to process payments online. It acts as an intermediary between a customer’s bank and the merchant’s bank, ensuring that sensitive information like credit card details is encrypted and transferred securely.
Understanding the Kenyan Payment Ecosystem
Kenya is a leader in mobile payments, driven largely by Mpesa, the mobile money system that has revolutionized transactions across the country. As digital and mobile commerce expands, businesses are increasingly looking for integrated payment solutions that cater to both local and international customers.
In 2023, mobile payment systems accounted for over 50% of all transactions in Kenya, making the landscape highly favorable for growth in e-commerce and digital services.
The choice of a payment gateway will determine how well your business can handle transactions, manage multiple currencies, ensure security, and provide a seamless customer experience.
Top 10 online Payment Gateways in Kenya for 2024
1. Pesapal: The Pioneer of Payment Gateways in Kenya
Pesapal has been a key player in Kenya’s digital payment ecosystem since its inception. Known for its user-friendly interface and secure transaction processing, Pesapal is widely adopted across the country. It offers payment solutions for mobile, online, and point-of-sale (POS) transactions.
Features, Transaction Fees, and Merchant Support
- Supports multiple currencies (KES, USD, GBP)
- Integration with major mobile money platforms (Mpesa, Airtel Money)
- Customizable payment pages for merchants
- Detailed transaction reporting and analytics
- Robust customer support
Fees
Transaction fees range between 2-4% depending on the payment method and transaction volume.
Best For
SMEs, large enterprises, NGOs, and educational institutions looking for a reliable, multi-channel payment solution.
2. iPay: A Versatile Option for Small and Large Businesses
iPay is an easy-to-integrate payment gateway that caters to a wide range of businesses, from startups to large corporations.
Features, Fees, and User Experience
- Real-time payments with SMS and email notifications
- Integration with popular shopping carts like WooCommerce and Magento
- User-friendly dashboard for transaction management
- Recurring billing options for subscription-based businesses
Fees
Charges a 3% fee per transaction, with custom pricing options for high-volume merchants.
Best For
Businesses of all sizes, particularly e-commerce stores and service providers.
3. Mpesa (Lipa Na Mpesa): Leading Mobile Payments
Mpesa is arguably one of the most recognized payment gateways in Kenya, dominating the mobile payments market. Lipa Na Mpesa allows seamless mobile money transactions, making it an ideal choice for SMEs.
Integration, Transaction Costs, and Advantages for SMEs
- Widely accepted for peer-to-peer and business transactions
- Real-time payments and transaction confirmations
- No monthly subscription fees for merchants
- Integration with e-commerce platforms like Shopify
Fees
Transaction fees are capped at 0.5% with a maximum of KES 200 per transaction for merchants.
Best For
SMEs, freelancers, and businesses serving local customers.
4. PayPal: The Global Payment Giant
For businesses that serve an international customer base, PayPal is one of the trusted and widely accepted payment gateways in Kenya. Although relatively expensive, it offers seamless cross-border payments.
Cross-border Payments and Benefits for Freelancers
- Supports over 25 currencies and is available in 200 countries
- Integration with most e-commerce platforms
- Secure transactions with fraud protection and dispute resolution
- Direct integration with Mpesa for Kenyan users
Fees
International transaction fees range from 3.4% + $0.30 per transaction, with currency conversion fees applying.
Best For
Freelancers, international businesses, and e-commerce stores.
5. Flutterwave: Powering African E-commerce
Flutterwave has rapidly expanded across Africa, providing a robust and scalable payment solution with support for over 150 currencies. Making it one of the sort after Payment Gateways in Kenya.
Scalability, Security, and Key Benefits
- Supports payments via Mpesa, card payments, and international bank transfers
- Integration with WordPress, WooCommerce, and Magento
- Comprehensive security features, including PCI-DSS compliance
- In-depth reporting and analytics tools
Fees
Charges a 2.9% transaction fee for international payments and 1.4% for local payments in Kenya.
Best For
High-growth startups, large e-commerce businesses, and cross-border merchants.
6. DPO Group: Robust Enterprise Payment Solution
DPO Group offers enterprise-grade payment solutions, catering to businesses that need secure, scalable, and high-volume transaction processing.
Security Features, International Reach, and Fees
- Multi-currency support with dynamic currency conversion
- Comprehensive fraud prevention tools
- Customizable payment solutions for large enterprises
- POS systems for physical stores and businesses
Fees
Pricing varies based on the size of the business and transaction volumes but typically starts at 2.5% per transaction.
Best For
Large corporations, hotels, airlines, and enterprises handling high-value transactions.
7. JamboPay: Government-Backed and Trusted
JamboPay is widely recognized for powering government services, offering a secure and reliable platform for businesses across different sectors.
Key Features and Use Cases in Kenya
- Trusted by government and private sectors
- Supports mobile money, card payments, and bank transfers
- High-level encryption and fraud protection
- Integration with major banking institutions
Fees
Charges a 3% fee per transaction, with volume discounts available.
Best For
Government-related payments, utilities, and large organizations.
8. Cellulant: Building Seamless Payment Infrastructure
Cellulant provides end-to-end payment solutions with a focus on delivering seamless digital experiences across Africa.
Features, Security Protocols, and Benefits
- End-to-end payment processing for multiple channels
- Supports over 100 banks and mobile money platforms
- PCI-DSS certified for security and fraud protection
- Customizable payment solutions for various industries
Fees
Transaction fees start at 2.5%, with custom pricing available for larger businesses.
Best For
Large businesses, banks, and fintech companies.
9. Direct Pay Online: Comprehensive Payment Support
Direct Pay Online (DPO) offers a comprehensive, all-in-one payment solution with robust fraud detection systems.
Integration and Merchant Tools
- Multi-currency support for international payments
- Secure transactions with PCI-DSS Level 1 compliance
- Mobile money and card payment integration
- Detailed transaction tracking and reporting tools
Fees
DPO charges between 2.5% to 3.5% per transaction, depending on the payment method.
Best For
E-commerce, travel, and hospitality industries.
10. Kopo Kopo: Empowering SMEs
Kopo Kopo focuses on empowering small and medium-sized businesses by offering seamless integration with Mpesa.
Integration with Mpesa and Ease of Use
- Quick and easy integration with Mpesa
- Customizable solutions for small businesses
- Mobile-friendly user interface for transaction management
- No setup fees for merchants
Fees
2% per transaction for Mpesa payments, with additional fees for credit card processing.
Best For
SMEs and local businesses looking to leverage mobile money solutions.
Comparing Payment Gateways: Fees, Security, and Ease of Use
When choosing a payment gateway, it’s essential to consider several factors, including transaction fees, security, and ease of integration. Here’s a comparison of the top gateways:
| Gateway | Transaction Fees | Key Feature | Best For |
|---|---|---|---|
| Pesapal | 2-4% | Multi-channel payment support | SMEs and large businesses |
| iPay | 3% | Real-time notifications and dashboard | Startups and corporations |
| Mpesa | 0.5% (capped at KES 200) | Widely accepted mobile payment system | SMEs and local businesses |
| PayPal | 3.4% + $0.30 (intl.) | Cross-border payment solutions | Freelancers and e-commerce |
| Flutterwave | 1.4%-2.9% | International payment support | High-growth startups |
| DPO Group | 2.5%-3.5% | Enterprise-grade security | Large enterprises |
The Future of Payment Gateways in Kenya
As Kenya continues to lead in mobile money innovation, the future of payment gateways looks promising. With more businesses transitioning to digital payments, mobile-first solutions like Mpesa will continue to dominate. However, gateways offering cross-border payment solutions, such as PayPal and Flutterwave, will also play an essential role in driving international trade.
Trends to Watch in Mobile and Digital Payments for 2025
Key trends to watch in 2025 include increased adoption of cryptocurrency payment gateways, more AI-driven fraud detection, and enhanced user experiences through seamless integrations with popular business management tools.
Conclusion
Selecting the right payment gateway from a pool of Payment Gateways in Kenya for your business depends on several factors, including your target audience, transaction volume, and the need for local vs. international payments.
Mpesa remains the most practical solution for local transactions, while PayPal and Flutterwave offer robust options for cross-border payments. Businesses should prioritize security, ease of integration, and cost when making their decisions.
FAQ
Which payment gateway is best in Kenya?
iPay and Kopo Kopo are ideal for small businesses due to their affordability and integration options with Mpesa.
How secure are payment gateways like Pesapal and Flutterwave?
Both platforms offer high-level security protocols such as SSL encryption and PCI DSS compliance to ensure safe transactions.
Can I use PayPal in Kenya to receive international payments?
Yes, PayPal allows you to send and receive payments internationally, but transaction fees may apply, especially for currency conversions.
How does Mpesa compare with traditional card payments?
Mpesa provides instant mobile transactions and is widely used in Kenya, offering more convenience than traditional card payments for local transactions.
Are payment gateways like DPO Group suitable for large businesses?
es, DPO Group provides robust solutions for large businesses, offering secure payment systems, international transaction capabilities, and enterprise-level features.
Does Kenya use PayPal?
PayPal is fully available in Kenya. You can link your PayPal account with banks such as Equity Bank for seamless transactions.
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