Africa’s middle class is steadily growing in number and so is Africa’s development. About a third of the continent spends between $4 to $20 a day – a group that is expected to grow to 42% by 2060, according to data from the Africa Development Bank. That’s more than a billion people.
Consumption on the continent rose to more than $1 trillion in 2012, from $364 million in 2000, an annual rate of growth of 10.7%.
With increase in internet penetration, more and more transactions are to happen online – 50% of Africa is expected to have access to the internet by 2025, and once you access the internet and its conveniences ; it is said that you can never turn back.
Online transaction and shopping is anticipated to be the core form of purchasing in the coming years with more businesses expected to set up online platforms to reach the ever growing digital market because this is the direction that innovations are taking.
The future of payments for e-commerce
A lot of African e-commerce platforms provide products with a lot of ease to the customer – many companies are expected to follow suit with this online phenomenon. However one challenge has always stood in the way of the growth of e-commerce ; that is the use of card payment systems as an option for the customer to pay.
Africa isn’t wired like the rest of the world in regards to payments – whereas the world pays using cards and online banking services for products and services accessed through e-commerce, only a small minority use the mentioned services to pay for products in Africa.
Africa is primarily a mobile wallet driven economy with majority opting to pay and receive money using their mobile money accounts rather than using card payment and the banks.
What does this mean – E-commerce businesses need to tailor their payment systems in order to maximise payments from African countries.
Africa has many mobile wallets that have a following, depending on the country the e-commerce platform is in.
E-commerce businesses are advised to integrate payment services such as DusuPay. DusuPay gives an e-commerce business access to collect payments from across Africa using one avenue under a single payment integration.