As necessity drives innovation, Banks in the East African region have strongly positioned themselves to hinge on internet banking to promote e-commerce following the advent of a new payment system that allows online card payments for businesses that subscribe to the service through their commercial websites. The new e-commerce online payment service launched by I&M Bank to serve the East African region will allow merchants to accept online payments through credit and debit cards on their websites. I&M Bank has therefore been awarded an e-commerce Acquiring license from Visa International as the first commercial bank in the region to qualify to offer the service. 

The payment service rides on an Internet payment portal from iVeri Payment Technologies, a leading provider of multi-channel e-payment solutions. The payment technology is aimed at offering Kenyan online retailers and e-commerce merchants a cost effective ePayment service to accept Visa card payments on-line for sale of their products and services through their website. Mr.Arun Mathur I&M Bank, Chief Executive Officer said the new payment gateway will give potential and existing Kenyan e-commerce merchants, like airlines, tour and travel companies, hotels, utility service providers, the opportunity to expand their sales online with a significant reduction in transaction costs.  “Our new e-Payment services will give a significant boost to e-commerce by lowering the barrier of entry for E-Commerce merchants and giving them a secure and efficient e-Payment capability at extremely affordable costs,” said Mr. Mathur.Mr. Mathur said technology has enabled the bank maintain cost effectiveness, significantly cut operations cost and further boosts its competitiveness; “As a bank, we keep pace with technology to improve product delivery standards and offer superior service to our customers and the launch of the new e-payment platform takes us to the next level of product innovation and customer service.” Mr.Mathur also observed that the payments landscape was changing, fuelled by rising consumer expectations and technology advances, prompting the bank to design a product to help organizations tap into the internet’s revenue building capacity. He said the customers were looking for ways to use new economy technologies to expand their businesses from bricks to clicks, which he noted, had been constrained by limited and expensive online payment gateways. “Our customers understand that both physical and virtual channels are important to their current and future growth and that’s what we are offering them through the launch of our e-payment platform.E-commerce is a cornerstone of electronic payments and prior to I&M Bank deploying this technology, Kenyan businesses were forced to find solutions to sell their goods and services outside of Kenya.  “The inability to accept payments for products and services on equal footing with the rest of the world means that many viable business options have not been available for merchants in Kenya and we believe those organizations which transact over the internet will find this product a critical component of their e-commerce process. It is now a reality thanks to I&M Bank that any Kenyan business has access to the global market to sell their goods and services using a local and affordable solution, “added Mr. Mathur. With Visa’s license, I&M Bank will now be able to address a wide range of processing needs for its e-payment operations on a certified platform that delivers a secure, reliable and scalable transaction infrastructure.  “We believe this combination of enhanced functionality will create a powerful incentive for E-Commerce merchants to expand their initiatives and enable consumers to embrace the convenience of shopping online in a secure environment. I&M Bank’s decision to provide E-Commerce technology is part of the next phase of offering modern and world-class card payment services to cardholders in Kenya and the world.” said Mathur. Mr. Sarit Shah, Executive Director of I&M Bank noted that as they align themselves as bank with the vision 2030 of transforming national development, E-Commerce will empower more Kenyans and especially the youth by creating job opportunities, promoting cross border trade and increasing our country’s foreign exchange reserves.  “I&M Bank is therefore delighted to take the lead in providing Kenya with the ability to join the world of E-Commerce. This marks a significant move ahead in providing modern and convenient services to our customers.” e-payments to Boost E-Commerce Besides giving the bank a competitive advantage, the launch of the e-payments platform is expected to significantly boost the growth of e-commerce in Kenya. Just like in other developing economies, lack of true online payment options has limited E-Commerce growth in Kenya. “We congratulate I&M Bank Limited for being the first to make e-commerce available in Kenya and East Africa. We believe this initiative will greatly contribute to modernising payments and will bring economic benefits to Kenya through improved local and international commerce,” said Victor Ndlovu, Visa's Country Manager for Kenya.  Barry Coetzee, Chief Executive Officer of iVeri said: "With iVeri's Payment Gateway I&M Bank can address the processing needs for its e-payment operation on a certified PCI DSS™ platform (an international data protection standard mandated for Visa transactions) that delivers a secure, reliable and scalable transaction infrastructure." In a statement contained in a White Paper on the Future of E-Commerce in Kenya commissioned by the bank, industry experts contend that critical sectors like tourism and travel, manufacturing, utility businesses, auto industry, are likely to benefit the most from E-Commerce. “Online sales have been one of the few sectors to experience growth despite the global recession. Travel is now the number one selling commodity online and is generating over US $110 billion annually in sales. We must get more African tourism products available to the online travel shopper,” said Damian Cook Chief Executive Officer, E-Tourism Africa. With the launch of locally based e-payment system, the unveiling of fibre optic cables  providing increased broadband and greater online access at a reduced cost and the government’s increased involvement in creating enabling environment, it is predicted that E-Commerce transactions will grow dramatically, presenting tremendous opportunities for various sectors.