This archive report was first published on 15 July 2020.
On July 15, 2020, China's UnionPay International (UPI) announced a partnership with Kenya's iPay to expand its online payment services across Africa.
Under the deal, UPI cardholders will be able to access over 8,000 online merchants across the continent, facilitating transactions with several African brands.
According to UnionPay International, the partnership aims to promote digital payments and reduce physical contact during the COVID-19 pandemic.
"We believe that it is essential for the public to understand the benefits of digital payments, beyond reducing physical contact during this challenging time," said Mr. Luping Zhang, General Manager at UnionPay International Africa Branch.
UnionPay International has seen a significant increase in global online transactions, with a 20% rise as more people adopt digital payments to minimize physical contact and cash handling amid the pandemic.
With over 8.4 billion UnionPay cards issued in 61 countries and regions, UPI has expanded its acceptance network to 178 countries and regions.
iPay Managing Director Philip Nyamwaya welcomed the partnership, stating that it aligns with their strategic vision to see the rapid uptake of the UnionPay card scheme globally and across Africa.
UnionPay cards have been issued in over 10 African countries and regions, including Kenya, Tanzania, Uganda, Ghana, South Africa, and Mauritius.
The COVID-19 pandemic has driven transactions away from cash, with cards being one of the preferred modes of payment alongside mobile money for those looking to avoid handling physical notes.
According to the Central Bank of Kenya (CBK), transactions via credit, debit cards, and point-of-sale (PoS) machines grew by Sh1.64 billion to hit Sh165.56 billion in the first quarter of 2020, despite businesses seeing a drop in demand due to the pandemic.
