At first glance, Africa’s B2B payments sector looks like a saturated market. Many high-profile companies have emerged over the years to process payments on behalf of global merchants. Yet, despite its rapid growth in recent years, Africa’s payments sector is barely scratching the surface.
Africa’s payment landscape is diverse and multifaceted, marked by the lack of widespread card penetration and the preference for localised payment methods over traditional credit or debit cards. The continent has the lowest credit card penetration in the world (3%). This makes the reliance on cash a persistent challenge to the growth of digital payments in Africa.
The fragmentation and diversity of Africa’s payment sector, diverse payment preferences, and varying technological infrastructures across different regions are all challenges the sector is still plagued with and act as deterrents for global merchants to accept local payment methods.
The mix of payment methods varies from country to country. For instance, in Nigeria, account-based transfers and debit cards prevail. In Kenya and Ghana, where there’s…
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https://techcabal.com/2023/11/30/how-can-alternative-payments-improve-africas-digital-payment-landscape/
