Payments have evolved differently in different parts of the world. What works in one part may not work in another. Take an example ; the UK has largely adopted card payments (Visa and mastercard) whereas Cameroon’s dominant payment module is Mobile money.
Here is what you need to know when choosing a payment gateway for Africa
- Card payments in Africa account for less than 2% of all payments. Excluding South Africa, most of the other African countries have adopted mobile money a lot faster than the card. As a business it makes more sense to tap into mobile money rather than Cards.
- Mobile money wallets are owned by different telecoms and are segmented by boarders and telecoms. In Tanzania for example there are 3 major mobile money providers Airtel, Vodacom and Tigo. When choosing a payment service provider, choose one that integrates all the local mobile money networks for all different countries.
- All payments made on mobile money wallets are done in the local currencies. As an international business, choose a Payment Service Provider that provides a favorable rate of transfer to your local currency.
- Online Banking is more used than cards in Africa
- Local cards dominate International cards in Nigeria.