Airtel Money Kenya is targeting small businesses with a new digital wallet as it seeks to deepen customer engagement after increasing its share of Kenya’s mobile money market to 10.9%, signalling a new phase in its challenge to Safaricom’s M-PESA.

The launch of Bizna Wallet on Monday comes as merchant payments emerge as one of the fastest-growing segments of  Kenya’s mobile money market. 

Safaricom, which dominates the sector, more than doubled the number of merchants using Pochi la Biashara to 2.1 million in the year ended March, while revenue from the product rose 86% to KES 4 billion ($31 million). The figures suggest merchant services are becoming a meaningful growth engine, creating an opening for rivals that have spent years focused primarily on attracting new users.

Airtel’s customer base has expanded steadily through lower transfer costs, broader agent coverage and partnerships with banks. 

According to the company, Airtel Money now serves more than six million customers through a network of 270,000 agents and over two million merchant outlets. 

The challenge has now shifted from persuading customers to open wallets to making  Airtel Money an integral part of how they run their businesses.

Competing for merchant payments

Bizna Wallet targets Kenya’s informal economy, where many traders still receive customer payments through personal mobile money wallets. The product provides a dedicated wallet for business income, allowing merchants to separate business earnings from household spending without opening another account.

Micro, small and medium enterprises employ more than 14.9 million people, contribute between 30% and 34% of Kenya’s gross domestic product and account for more than 90% of private businesses, according to a 2026 study by Strathmore University Business School.

Many of those businesses, from market traders and neighbourhood shops to salons and boda boda riders, depend on mobile money to receive payments. Yet many continue to use personal wallets, making it more difficult to separate business income from household expenses, track cash flow and maintain accurate records.

“Our entrepreneurs need more than just a platform to send and receive money,” Acting Airtel Money Kenya managing director Michael Bonke said. “They need a financial solution that will help them manage their day-to-day business activities.”

Airtel said customers will not pay fees when transferring money into a Bizna Wallet, a pricing decision that could encourage broader adoption among small businesses.

The product closely resembles  Safaricom’s Pochi la Biashara, underscoring how merchant services have become the next battleground in Kenya’s mobile money market. Whereas earlier competition centred on transaction pricing and customer acquisition, the focus is increasingly shifting towards boosting transaction volumes and merchant activity.

Platform overhaul lays the groundwork

Bonke devoted much of the launch to discussing Airtel Money’s technology rather than the product itself, pointing to a recent upgrade of the company’s core payments platform.

“We’ve recently upgraded our Airtel Money system to allow us to have a faster go-to-market,” he said.

According to Airtel, the investment has enabled Airtel to introduce products and partnerships at a quicker pace while improving reliability and security. In recent months, the investment has seen Airtel deepen integrations with banks, retailers and government agencies, allowing customers to move money between Airtel Money and all major Kenyan banks. Bizna Wallet is one of the first products built on that upgraded infrastructure.

Airtel paired the launch with changes to its loyalty programme, replacing airtime rewards with cashback paid directly into customers’ Airtel Money wallets. Eligible transactions, including person-to-person transfers, merchant payments and bill payments, will now return 50% of transaction fees as cash instead of airtime.

“As I begin this new chapter as CEO of Airtel Kenya, I am honoured that one of my first engagements is the launch of Airtel Money Business Wallet and the 50% cashback programme,” chief executive Djibril Tobe said. “They reflect our commitment to empowering Kenyan businesses and advancing financial inclusion.”

The cashback programme gives customers a reason to leave money inside Airtel Money and continue transacting instead of immediately converting rewards into airtime or cashing out.

Safaricom still commands the vast majority of Kenya’s mobile money market, but the rapid growth of its merchant business has highlighted where the sector’s next expansion opportunity lies.

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