In a groundbreaking move to accelerate digital transformation in East Africa, Mastercard and Diamond Trust Bank (DTB) have announced a 10-year partnership to deliver tailored digital payment solutions across Kenya, Uganda, and Tanzania. The collaboration aims to reshape the digital banking experience for both individuals and businesses, promoting secure, convenient, and inclusive financial services across the region.
This alliance, blending Mastercard’s global digital payment expertise with DTB’s strong market presence, will introduce several firsts for East Africa, including Kenya’s inaugural tokenization-based payment wearables. This innovative technology, in collaboration with Tappy Technologies, aims to empower consumers with a secure and contactless way to make payments simply by tapping a wearable device.
A Decade-Long Partnership for East Africa’s Financial Evolution
Mastercard and DTB’s decade-long agreement is designed to elevate the digital payment landscape across East Africa, a region where mobile technology and digital banking are increasingly reshaping how people manage their finances. With both organizations strongly committed to financial inclusion and digital innovation, this partnership is set to address the evolving needs of consumers, SMEs, and corporate clients in an increasingly cashless economy.
The collaboration comes at a time when digital payments in Africa are expanding rapidly. According to recent Mastercard data, one in nine transactions at point-of-sale terminals in the Middle East and Africa (MEA) region is contactless, underscoring a growing preference for secure, touch-free payment options. The strategic alliance between Mastercard and DTB is poised to meet this demand, delivering digital solutions that enhance financial accessibility, efficiency, and security.
Unveiling Kenya’s First Tokenized Payment Wearables
Among the most exciting aspects of this collaboration is the introduction of Kenya’s first tokenization-based payment wearables, a significant technological advancement made possible through a partnership with Tappy Technologies. These payment wearables allow consumers to make secure, contactless transactions with just a tap at any enabled point-of-sale terminal. Tokenization technology replaces sensitive payment information with encrypted tokens, ensuring cardholder data remains protected throughout the transaction process.
This shift toward tokenized wearables not only enhances security but also transforms everyday accessories—such as watches, rings, and bracelets—into powerful payment tools. Consumers can now make payments conveniently and securely, using a wearable device that functions seamlessly with the growing number of contactless terminals across Kenya. Mark Elliott, Division President for Africa at Mastercard, expressed excitement about the collaboration, emphasizing how these innovations reflect Mastercard’s commitment to financial inclusion and digital growth in East Africa.
“We are thrilled to collaborate with Diamond Trust Bank and Tappy Technologies to launch these game-changing innovations,” said Elliott. “By combining our expertise in digital payment solutions with DTB’s strong market presence, we are enhancing the banking experience and providing customers with more secure and convenient ways to pay.”
Key Benefits for Consumers, Merchants, and Financial Institutions
This partnership is anticipated to bring a multitude of benefits to the East African financial ecosystem:
- Enhanced Security and Convenience for Consumers: With tokenized payment wearables, consumers can enjoy faster checkout times and added security, reducing the need for cash or physical cards. The wearables encrypt payment data, protecting against fraud and unauthorized access.
- Faster Transaction Approval for Merchants: Contactless payments improve the checkout experience for merchants, leading to higher approval rates and enhanced customer satisfaction. The convenience of tapping to pay encourages repeat transactions, helping businesses drive higher volumes.
- Increased Transaction Volumes for Financial Institutions: Through Mastercard’s “Top of Wallet” approach, financial institutions like DTB can benefit from the increased transaction frequency and customer engagement that come with digital payment options.
- Opportunities for Fintech Innovation: By introducing cutting-edge digital solutions such as wearables, this partnership supports fintechs in scaling their customer bases and achieving greater adoption rates. The integration of these wearables into existing digital payment infrastructures paves the way for fintech players to explore new business models and value-added services.
Driving Financial Inclusion Through Digital Solutions
For DTB, this partnership aligns with the bank’s ongoing efforts to enhance financial inclusion across East Africa by making banking more accessible to a broader demographic. Nasim Devji, Group CEO of DTB, highlighted how the collaboration with Mastercard will allow DTB to accelerate its digital transformation journey, especially for underserved communities and small businesses that rely on accessible financial services for growth.
“This collaboration with Mastercard will help accelerate our digital transformation journey and significantly enhance our ability to deliver innovative financial solutions to our retail, SME, corporate, and fintech clients,” said Devji.
Financial inclusion is a pressing issue in Africa, where a significant portion of the population remains unbanked or underbanked. Digital payment solutions, particularly those that leverage mobile and wearable technologies, have the potential to bridge this gap, offering secure and convenient banking options to previously underserved communities. Mastercard and DTB’s partnership exemplifies how financial institutions can work together to create meaningful, technology-driven change that addresses local needs and promotes economic empowerment.
Expanding Digital Payment Options for P2P, B2B, and P2B Transactions
The Mastercard-DTB collaboration will also focus on creating innovative digital solutions for different transaction types, such as:
- Peer-to-Peer (P2P): Individuals will have more options for transferring funds directly to each other using DTB’s digital platforms, facilitating instant transfers and reducing reliance on cash.
- Business-to-Business (B2B): Small and medium enterprises (SMEs) across Kenya, Uganda, and Tanzania will benefit from streamlined B2B payment solutions, enabling faster cross-border transactions and improved financial management.
- Person-to-Business (P2B): With the new digital payment options, consumers will be able to pay for goods and services with ease, improving the consumer experience and supporting local businesses in adopting cashless transactions.
Shaping the Future of Digital Payments in East Africa
This partnership positions DTB and Mastercard at the forefront of the digital payment revolution in East Africa. With the region’s digital economy growing rapidly, the demand for secure, user-friendly, and scalable payment solutions is higher than ever. Mastercard’s data further illustrates this trend, showing that contactless transactions are becoming a preferred method among consumers and merchants alike.
According to a recent Mastercard report, digital payments in Africa have the potential to unlock USD 16 billion in revenue for financial institutions by 2025, highlighting the immense economic impact of embracing cashless solutions. As more people in East Africa gain access to mobile devices and internet connectivity, digital banking will become an essential tool for fostering economic growth, reducing poverty, and increasing financial literacy.
Impact on East Africa’s Fintech Landscape
The Mastercard-DTB partnership will not only impact traditional banking but also bolster the fintech landscape across East Africa. By introducing cutting-edge solutions like payment wearables, the collaboration supports fintech startups seeking to develop new applications and services. The adoption of tokenization technology, for instance, sets a high standard for security, allowing fintech companies to build on this framework and create more advanced, secure digital products.
As East Africa continues to attract investment in fintech and digital infrastructure, collaborations like this one will be pivotal in setting the standard for secure, inclusive, and innovative financial services. The rise of mobile money, the proliferation of digital wallets, and now the introduction of payment wearables demonstrate how East Africa is not only keeping pace with global fintech trends but also leading in the adoption of user-centric digital solutions.
Future Prospects: What’s Next for DTB and Mastercard?
As DTB and Mastercard look to the future, they plan to expand their offerings, potentially introducing new products and services that further enhance the digital payment experience. From contactless cards and mobile wallets to virtual payment solutions and loyalty programs, the next decade promises exciting advancements for customers in Kenya, Uganda, and Tanzania.
In addition, both organizations have indicated a commitment to financial literacy programs, which will be crucial in ensuring that consumers understand and embrace these new technologies. Through educational campaigns and community engagement, DTB and Mastercard will support customers in making informed choices about digital banking and secure payment methods.
A Landmark Move for East African Digital Banking
Mastercard and DTB’s partnership represents a landmark development in East Africa’s digital banking landscape. By introducing tokenized payment wearables, expanding cross-border digital solutions, and driving financial inclusion, the collaboration is set to transform the region’s financial ecosystem. As East Africa continues to embrace cashless payments, this partnership will pave the way for a more connected, secure, and innovative digital future.
With initiatives like these, East Africa is moving closer to a reality where digital payments are seamless, secure, and accessible to all, making everyday transactions faster and more convenient. The Mastercard-DTB alliance is a powerful example of how strategic partnerships can drive meaningful change, making digital financial services more inclusive and impactful across the continent.
