Healthcare expected to be a key growth driver for mobile payment firms in emerging economies; gains strong traction in Kenya

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Majority Kenyans pay for healthcare services through cash which is prevalent among low income group. This implies that this segment does not have access to healthcare insurances, which impacts access to basic healthcare facilities. However, mobile penetration rate is surprisingly higher among this consumer segment. This has propelled mobile payment expansion in this area.

Mobile health wallet CarePay, PharmAccess and telecom operator Safaricom have partnered to introduce M-Tiba, which is a mobile wallet intended for sending, receiving and saving funds for healthcare services. It also includes bonus schemes and is partnering with majority clinics across the country to reach out to larger section of unbanked mobile consumer segment. Pfizer Foundation has funded a bonus scheme for this wallet wherein initial 100,000 users will get a monthly bonus of Shs 50 (USD 0.50) for up to 12 months if they deposit Shs 100 (USD 1) and above every month. UAP insurance has also offered a personal accident cover for 12 months for main member and for one spouse; it is up to Shs 8,000 (USD 80). This service was initially rolled out in Nairobi. Currently, the service is available at selected service providers who are contracted to CarePay. Initially, 60 M-Tiba healthcare providers were present in Nairobi which has expanded to 2,000 across Kenya.

PharmAccess is currently working towards maintaining international safety standards across affiliated service providers. Option of sending money to other and own accounts was introduced in September 2016. There are other players who had also taken a step towards this business segment earlier. Airtel Kenya had partnered with MicroEnsure for processes and Sanlam Kenya for underwriting to provide three insurance products starting at USD 2.50 per month. National Hospital Insurance Fund (NHIF) collaborated with Safaricom way back in 2010 to allow self and informally employed people to pay health insurance premiums through M-Pesa accounts.

PayNXT360 believes that healthcare for unbanked or underbanked population to be a key driver of growth for mobile payment companies. This segment is expected to attract more start-ups over the next two years, pushing up the rate of innovation. Growth story is expected to be strong and spread globally across emerging markets.

To know more and gain deeper understanding of mobile payment industry in Kenya, click here.