Paymentology and Diamond Trust Bank Drive Embedded Finance in Kenya

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  • 08.05.2024 10:15 am

Paymentology, the leading global issuer-processor, today announces its strategic partnership with Diamond Trust Bank (DTB), a tier-one East African commercial banking franchise. The partnership is aimed at driving financial inclusion in Kenya through the embedding of financial services, and deployment of Cards-as-a-Service (CaaS), for both licensed and unlicensed entities.

Operating across Kenya, Tanzania, Uganda, and Burundi, DTB offers innovative banking and insurance solutions to retail, SME, and corporate customers, and is deeply committed to driving sustainable economic growth in the markets it serves.

By combining Paymentology's technological expertise and advanced next-generation platform with DTB's extensive market presence and regulatory compliance, the two organizations are providing an aggregated card solution to fintechs and any other non-financial organisations that are looking to embed a CaaS programme as part of their proposition in line with regulatory framework.

Paymentology, leverages its technology and robust payment card solutions to empower clients in the creation, distribution, and management of cards. Conversely, DTB, a fully licensed issuing bank compliant with banking laws and regulations, holds the distinction of a Card Association Issuer license, enabling it to establish and sponsor BINs (Bank Identification Numbers) for card issuance.

Now more than ever, trust and convenience are paramount for consumers and businesses alike. As more and more individuals rely on their preferred brands for seamless transactions, the provision of physical and virtual cards emerges as the next logical step to enhance checkout experiences and foster loyalty through rewards programmes.

However, navigating the complexities of financial licensing and scheme memberships can be daunting for businesses seeking to offer card solutions. With DTB handling the compliance aspects and providing everything necessary for client onboarding, including KYC procedures, and Paymentology bringing its card issuing and payment processing platform, the process is streamlined. This collaboration democratises the issuance of cards, enabling end users, whether consumers or businesses, to access tailored solutions such as cards for employee salaries, expense and travel cards, or traders' cards for online purchases.

Jamie Loden, Chief Operating Officer at DTB commented: "We are excited to collaborate with Paymentology, a leading and renowned processor in the market, to introduce our joint embedded finance proposition. We take pride in establishing the capability to create secure stores of value within a regulated framework and seamlessly integrate systems through simplified APIs. This partnership will not only enable us to enhance our service offering, but also contribute to the development of a more inclusive and advanced digital payment ecosystem in East Africa, which is aligned with our digital transformation strategy”.

Kirsten Wortmann, Regional Director for Africa at Paymentology added: "At Paymentology, we are committed to fostering financial inclusion through strategic partnerships like this one with Diamond Trust Bank. By enabling the embedding of financial services for both licensed and unlicensed entities, we are not only providing an expedited pathway for partners to activate their card propositions but also contributing to the region's growth and sustainability.”

Embedded finance is revolutionizing the global economy by integrating financial services seamlessly into everyday experiences. This transformation not only simplifies financial transactions but also extends access to banking services to millions of unbanked individuals. By providing cards to previously underserved populations, whether for running small businesses or gaining financial inclusion in the digital economy, embedded finance is opening doors and empowering individuals to achieve more. This partnership between Paymentology and DTB exemplifies the potential of embedded finance to drive positive change and foster inclusive economic growth on a global scale.

The announcement comes at a time when East Africa is poised for robust economic growth, with forecasts indicating growth rates exceeding 5%. Projections from the African Development Bank's 2023 East Africa Economic Outlook underscore confidence in the market's buoyancy and resilience, despite global economic headwinds and regional challenges.

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