Mobile payments gaining momentum in healthcare segment

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In past couple of years mobile payments have risen to be one of the most important payment platforms across various geographies and industries. Starting with online shopping, it has made its way to bill payments, fund transfers and much more. Many players have not only invested in building up mobile payment platforms, but have also worked towards implementing advanced technology in making these platforms convenient and secure at the same time. In recent quarters, healthcare segment has emerged as one of the key focus areas for mobile payment firms.

Currently, healthcare payments are in a pretty disordered situation across emerging and developed economies. Moreover, service providers have also stated that collecting outstanding amount from consumers takes more than a month on an average. Hence, healthcare industry poses to be a new opportunity of business expansion for mobile payments to ease out payment process and benefit healthcare service providers as majority consumers are inclined towards paying bills online.

Recognising this opportunity, there has been certain developments across the globe in this arena. In 2015, healthcare payment network, Instamed announced acceptance of Apple Pay on iPhone 6, 6 Plus and other compatible iOS devices including Apple Watch. It facilitated instant authentication of a payer for bill payment.

Last year, M-Tiba health wallet was launched in Kenya developed by patient financial engagement company CarePay, non-profit healthcare organization PharmAccess and Nairobi based mobile network operator Safaricom. It utilizes African bank transfer platform M-Pesa technology for fund transfers and bill payments. Funds in this wallet can be used for paying healthcare services and medicines. It has reached 500,000 million users after 6 months post its launch. On an average, 4,000 users have been registering for this scheme on a daily basis. M-Tiba has influenced reduction of out of pocket expenses and cash transactions in healthcare segment. Since most Kenyans are excluded from mainstream healthcare schemes, M-Tiba acts as a medium of greater healthcare inclusion for the country.

The mobile wallet market in Kenya in terms of transaction volume is projected to reach 7,562 million in 2021 from 3,741 million in 2017; recording a CAGR of 19.2%.

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