2nd-Dec-2025 • Alice Wambui • Crossborder Payments
In today's interconnected world, small and medium enterprises (SMEs) in Kenya have a unique opportunity to tap into global markets. However, one significant challenge remains: managing cross-border payments efficiently and cost-effectively. This guide will demystify the process, providing valuable insights and actionable tips for your SME's global growth.
Cross-border payments encompass transactions between businesses operating in different countries. These transfers can range from vendor payments to customer invoices, making them a crucial aspect of expanding your business beyond national borders.
According to the World Bank, Kenya ranked 40th globally in terms of ease of cross-border payments. While this places the country above many African nations, there is room for improvement. Delays and high fees associated with these transactions can impact your SME's bottom line.
By accepting payments from customers overseas, you can reach new markets and grow your business. This is particularly beneficial for SMEs specializing in niche products or services that may not be popular locally.
Efficient cross-border payments allow you to receive funds faster, reducing the strain on your working capital and improving overall financial health.
Common challenges include high fees, lengthy processing times, and complex compliance requirements. To overcome these obstacles, consider partnering with a reliable business management platform that offers seamless cross-border payment solutions.
Lipabiz Technologies Ltd, for instance, provides a payments platform designed to simplify the process for SMEs in Kenya and across Africa. With Lipabiz, you can make and receive payments quickly, securely, and cost-effectively—empowering your business to compete globally.
Don't settle for the first provider you come across. Shop around and compare fees, exchange rates, and transaction speeds to find the best fit for your SME.
Make it easy for overseas customers to pay by offering multiple payment options, such as bank transfers, credit cards, and mobile money. Clearly communicate payment terms and any additional fees upfront.