NAIROBI, Kenya, Sept 20 – Local Payment Service Provider, Virtual Pay International, has become the first Kenyan player in the online payments sector to obtain a Visa Principal Acquirer Licence, which will allow the fintech to directly acquire Visa card transactions.
The new licence will enable the company, which is headquartered in Mauritius with operations across multiple jurisdictions, to increase its efficiency in handling online payments while protecting its users from fraud.
David Morema, the Virtual Pay Group CEO, explained that the licence makes Virtual Pay the first indigenous Payment Service Provider in East and Central Africa to be able to directly acquire Visa card transactions, significantly entrenching the company’s role in enhancing the region’s capacity to handle online payments with trust and inclusivity.
“This milestone belongs not only to Virtual Pay, but to East Africa as a whole,” said Mr Morema.
“We see this licence as an opportunity to strengthen collaboration among banks, fintechs, telcos, merchants, and regulators. The payments landscape thrives not on competition alone, but on partnership. By working together, we can accelerate financial inclusion, reduce inefficiencies, and drive innovation that benefits everyone — from the farmer in Arusha to the businessman in Nairobi.”
The East African region is at the forefront of digital finance globally, with mobile money adoption and cross-border commerce, setting benchmarks for other regions.
Online payment data in East Africa has showed significant growth, with Kenya leading the region in mobile money and digital transactions.
In Kenya, mobile money agents facilitated transactions equivalent to over 53 percent of the country’s GDP in 2024. Key trends include the increasing use of mobile wallets and the adoption of interoperable QR code standards to simplify payments across platform
Yet challenges persist: merchants face high transaction costs, limited interoperability, and fragmented payment solutions.
“With its newly acquired license, Virtual Pay is now positioned to address these challenges collaboratively, offering a platform that strengthens local infrastructure, lowers costs and increases speed, elevates security and compliance and encourages innovation,” noted Mr Morema.
Phineas Mwangi, who runs an AirBnB business in Nairobi, said online payments are at the core of his businesses and the Virtual Pay licence has come at a good time.
“I have clients from foreign countries that often come to Nairobi and such a platform will go far in aiding our transactions,” he said in an interview.
Mr Morema further noted: “the Visa Principal Acquirer Licence allows Virtual Pay to lead by example in several key areas including financial Inclusion, SME Empowerment, Cross-Border transactions and public-Private Synergy.”
Virtual Pay first entered the Kenyan online payments sector in 2022 after receiving a licence from the Central Bank of Kenya (CBK).
“As East Africa’s digital economy continues its rapid ascent, Virtual Pay extends an open invitation to all stakeholders — from financial institutions and fintech innovators to regulators and merchants — to join hands in building a more inclusive, resilient, and innovative payments ecosystem,” said Mr Morema.
