Nairobi — Cross-border financial service provider Citi has partnered with Visa and Cellulant to unveil Citi Optimised Pay, a new card payments solution designed to improve cash flow for small businesses across the country.
The partnership leverages the power of Tingg, Cellulant's payment gateway, to tackle the challenges faced by small businesses, including delayed payments and limited financing options.
The solution is designed to enhance efficiency in supply chain management, helping both buyers and suppliers address long payment cycles, cash flow constraints, and the lack of accessible financing options.
Citi Optimized Pay, which will allow suppliers to receive payments faster and in their preferred method, whether through bank accounts or mobile wallets, aims to close a significant gap in Kenya's supply chain finance market.
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According to the International Finance Corporation (IFC), the country's supply chain finance market is estimated to be worth $24.8 billion annually, representing a quarter of Kenya's GDP.
However, despite the market's substantial size, existing supply chain finance solutions currently meet only 7-10% of the demand, leaving a vast opportunity for improvement.
"We are proud to partner with Citi and Cellulant to launch Citi Optimized Pay. This solution will significantly enhance the efficiency of supply chain payments, providing businesses with reliable cash flow solutions,"said Visa East Africa Vice President Chad Pollock.
"This is part of Visa's efforts to empower businesses with the tools they need to thrive in today's dynamic market."
On his part, David Li, MEA Cards Head at Citi, emphasized the broader economic impact of the new platform.
"Providing access to a solution that drives the financial health of supply chains will have far-reaching effects, strengthening local networks, promoting job creation, and advancing financial inclusion."
Peter O'Toole, Group CEO of Cellulant, highlighted the transformative potential of their partnership.
He emphasized that streamlined payments are key to business growth and aligned with Cellulant's mission to provide secure, innovative solutions.
The partnership addresses supply chain financing needs, benefiting both corporate and SME suppliers by improving cash flow management and unlocking growth opportunities across the value chain.
