12th-Jan-2026 • Alice Wambui • Crossborder Payments
In today's interconnected world, opportunities abound for Kenyan Small and Medium Enterprises (SMEs) to expand their horizons beyond local borders. However, navigating the complex landscape of cross-border payments can present a significant challenge. This article aims to demystify this process, providing actionable insights that will empower Kenyan SMEs to harness the potential of global trade.
Cross-border payments refer to electronic transfers of money between parties across international borders. These transactions are crucial for businesses looking to export goods or services, pay overseas suppliers, or invest in foreign markets.
Traditional methods of cross-border payment can be costly, time-consuming, and riddled with complications such as currency conversion issues, compliance requirements, and fraud risks. However, advancements in digital technology have led to the emergence of innovative solutions designed specifically for SMEs.
1. Increased efficiency: Digital cross-border payment platforms streamline the process, reducing the time it takes to complete transactions and improving cash flow management.
2. Reduced costs: By eliminating intermediaries and offering competitive exchange rates, these platforms can significantly lower transaction fees, making international trade more affordable for SMEs.
Lipabiz Technologies Ltd, a Kenyan business management and payments platform, offers a solution tailored to the needs of local SMEs. With its user-friendly interface and robust security measures, Lipabiz simplifies cross-border payments, allowing businesses to focus on growth rather than logistics.