What the world needs to know about payments in Africa
Africa has enjoyed an enviable streak of strong economic growth. For the past 16 years, the region has maintained an average GDP growth rate of 5%, which has outperformed the global average by about two percentage points per annum. But recent disruptions in global commodity prices and greater competition for global trade have made the outlook for future economic growth more uncertain.Africa is a vast place with different languages, cultures, and economical preferences. While eCommerce may one day drive profits, certain elements need to be put in place so that the future will continue to look promising. The largest obstacle for Africa is not getting consumers to buy in, but constructing infrastructures that can support the operations. Below are five things the rest of the world needs to know about payment in Africa.
- Kenya is Moving Away from Cash
There has been a lot of talk about M-Pesa since it launched in 2007. The success of the mobile payment platform has changed the way many Kenyans interact with money. The ability to transfer money directly onto a mobile device is revolutionary, especially for a region where the traditional movements of funds were prone to petty and institutional crimes.
- Nigeria Leads the Way
In a report conducted by Ipsos , 89% of Internet users in Nigeria are potential online shoppers. Of the 54 countries in Africa, Nigeria is the leader in eCommerce. But Nigerians are not only conducting business within the border, 36% of shoppers have purchased something elsewhere in Africa. South Africa and Kenya are the two most popular digital trade routes.
- Nigeria’s preferred modes of payment
The Nigerian payment method of choice, is the Interswitch Verve card issued through 16 of the country’s major banks. There are over 10m Verve cards active in Nigeria, far outnumbering Mastercard and Visa credit cards. Those have a definite presence in the country and will continue to grow, but anybody selling into the Nigerian market who doesn’t take Verve payments is going to struggle.
Mobile money in Africa
Statistics from the Central Bank of Kenya indicate that Kenyans used mobile devices to transfer over KShs 1 trillion ($9.5bn) between January and June this year.And according to MarketsandMarkets, the entire African mobile money market is set to grow from $2.73 Billion in 2015 to $14.27 Billion by 2020.
Mobile payments in India are predicted to grow 200 times over the next seven years to $3 trillion or a full 10 per cent of the total payments in the country, which was just 0.1% in financial year 2015.
DusuPay is a simple yet secure in-store, in-app and an online payment solution which enables businesses in Africa to accept payments from other African countries and the rest of the world and Global Businesses Accept payments from Africa through multiple payment alternatives with a single integration. DusuPay Inntegrated multiple modes of payment from all over Africa including Mobile money wallets, Banks and Card service providers making it easy for any business all over the world to accept payments from Africa