Uber Restores Visa Payments for Riders in Kenya

Uber has brought back Visa card payments for its customers in Kenya, restoring an option that had been removed earlier this year because of rising transaction costs.

The ride-hailing company stopped accepting Visa cards in January, leaving customers with alternatives such as Mastercard, M-Pesa, Airtel Money and PayPal. However, from September 4, Visa once again appeared among the available payment methods for Kenyan riders.

Uber has not publicly explained what prompted the change or whether it has reached a new arrangement with Visa over transaction costs.

The return comes at an interesting time for the ride-hailing company, which recently pulled out of Nigeria and Uganda. Uber ended its operations in the two markets on September 2, making its decision to restore Visa payments in Kenya particularly notable.

When Visa payments were suspended earlier this year, the cost of processing card transactions was understood to be a major concern. Merchant fees on Visa transactions can typically range from about 1.5 per cent to 3.5 per cent, depending on various factors, making card payments more expensive for businesses compared with some alternative payment methods.

Visa said in January that it was engaging Uber to address the issue, although neither company provided a specific date for when Visa payments would return.

For Kenyan Uber customers, the development means those who prefer using Visa can once again add their cards to the platform and pay for rides directly.

The move also highlights the different considerations global technology companies face in individual markets. Payment preferences, transaction costs, regulatory requirements and the overall cost of operating a service can all influence decisions on which features remain available.

For now, Kenyan riders have one more payment option, while Uber’s decision to restore Visa suggests that the two companies may have found a way to make card transactions more commercially viable in the local market.