Kenyan’s prepaid smart card with chip and PIN technology Huduma Card has launched. The card is a product of the partnership between the Government of Kenya and Mastercard.
Sequel to the launch, Kenyans will be able to pay for various Government services like the National Hospital Insurance Fund (NHIF), and the National Social Security Fund (NSSF).
The Huduma project is an initiative by the Kenyan Government aimed at enabling citizens to access various public services and information at one-stop citizen service centres and through integrated technology platforms.
The Kenyan citizens can now get identity cards, passports, get birth certificates, registration of business names, and applications for marriage certificates, drivers’ licences, police abstracts, and many other essential services one place through the Huduma centres.
According to iAfrikan, MasterCard won the contract in 2015, and there were attempts to introduce the card as a means to pay for public transport, but after the project was shuttered due to lack of stakeholder interest and poor experience design, it appears that the plan is back on track, with new ‘Cash Lite Express’ buses spotted on the streets of Nairobi.
It seems that the focus is now on paying for essential services in addition to transport, perhaps because of the payment gaps that exist in the social services sector, as well as the need for a secure payment solution to serve this purpose.
The Huduma project has been lauded as one of the most brilliant approaches to including citizens to the financial sector.
Speaking on the project Daniel Monehin, Division President for Sub-Saharan Africa, Mastercard said, “We are proud partners, and it is a real honour to have been selected to power the solution with our world-class payment technology.”
One of the benefits of the initiative is the ease that goes with the process of obtaining a card. Firstly, applicants do not require a credit check or bank account to apply. Moreover, the cards are currently being issued at designated banks with no bank charges being allocated to citizens when registering for the smart card.
On the features of the card, iAfrikan reports that the cards come with multi-layered security features. The embedded EMV chip and PIN technology, for example, is a global payment standard that ensures that funds are protected even if the card is lost or stolen. This layer of protection ensures beneficiaries can receive their funds conveniently and securely.
Once funds are loaded to the prepaid card, cardholders can use their Huduma Card to pay for goods and services in-store, online, by phone or to withdraw cash from ATMs – anywhere Mastercard is accepted.
Commenting further on the initiative, Monehin said, “Innovation is central to achieving our vision of a world beyond cash in Kenya and across the continent. We are committed to developing market-relevant payment solutions that enhance the adoption of cashless transactions. By working together with industry, merchants and businesses, we will achieve this, in East Africa.”
Speaking on behalf of the Huduma Kenya Programme, Dennis Mutuku, CEO Huduma Kenya Secretariat said, “This is Kenya’s first multipurpose social payment card with payment functionality and we are excited to see the instant, substantial and positive impact that this will have on the lives of millions of citizens previously excluded from the financial mainstream.”
