Airtel Targets Kenya's Small Businesses as Mobile Money Competition Shifts to Merchants

Airtel Money Kenya is stepping up its competition with Safaricom by targeting one of the country’s largest business segments: small businesses. The company has launched Bizna Wallet, a digital wallet for merchants. It aims to strengthen its position in Kenya’s mobile money market. The launch follows steady growth for Airtel Money. The company has increased its market share to 10.9% and expanded its customer base over the past few years. Attracting new users remains important. However, the next phase of competition is shifting towards businesses that receive and manage payments every day.

Merchant payments become the next growth area

Merchant services have become one of the fastest-growing segments of Kenya’s mobile money industry. Safaricom has already recorded strong growth through Pochi la Biashara, its merchant payment solution. The company more than doubled the number of merchants using the service to 2.1 million in the year ended March 2026. Revenue from the platform also climbed 86% to KES4 billion (about $31 million). Those figures show how quickly merchant services are growing. They also highlight the opportunity for Airtel Money to expand beyond person-to-person transfers.

A wallet built for small businesses

Bizna Wallet targets Kenya’s informal business sector. Many traders still use personal mobile money wallets to receive customer payments. The service lets business owners separate business transactions from personal spending. They can do this without opening another account. The wallet could appeal to market traders, neighbourhood shops, salons and boda boda operators. It also targets thousands of other small businesses that rely on mobile money every day. Many of these businesses still struggle to keep accurate financial records. A 2026 study by Strathmore University Business School found that micro, small and medium enterprises employ more than 14.9 million people. The sector contributes between 30% and 34% of Kenya’s GDP. It also accounts for more than 90% of private businesses in the country.

“Our entrepreneurs need more than just a platform to send and receive money,” said Airtel Money Kenya Acting Managing Director Michael Bonke. “They need a financial solution that will help them manage their day to day business activities.” To encourage adoption, Airtel will waive transfer fees when customers move money into a Bizna Wallet.

Building on a stronger payments platform

Airtel recently upgraded its core payments platform to support the new service. The company says the investment will help it launch products faster. It also expects better system reliability and stronger security. The upgrade expands Airtel’s integrations with banks, retailers and government services. Customers can now move money more easily between Airtel Money and major Kenyan banks. Bizna Wallet is one of the first products to use the upgraded platform.

Cashback replaces airtime rewards

Alongside the new wallet, Airtel has revamped its customer rewards programme. Eligible transactions now earn cashback instead of airtime rewards. The company pays the cashback directly into Airtel Money wallets. Customers can receive back 50% of transaction fees on selected services. These include person to person transfers, merchant payments and bill payments. The programme gives customers another reason to use Airtel Money for everyday transactions. It also keeps more funds within the platform. Kenya’s mobile money market has long revolved around customer acquisition and transaction pricing. That is changing. Providers now focus more on helping businesses manage payments. They also want businesses to process more transactions and remain active on their platforms. Safaricom remains the market leader. However, Airtel’s latest merchant strategy shows where the market is heading. The next phase of competition will depend on which provider becomes the preferred financial platform for Kenya’s millions of small businesses.