18 Sep Capgemini World Payments Report 2019 - Highlights Impacting eCommerce And Online Payments Across Africa

The latest Capgemini World Payments Report 2019 was released today and here is our interpretation and some of the highlights relating to eCommerce payment and online payment across Africa and implications for payment providers.

The proliferation of digital wallets and innovations relating to mobile payments are driving growth in eCommerce and eCommerce platforms across Africa.   Central Europe, Middle East and Africa grew by 19% with markets such as Russia, Turkey and Nigeria leading the pack.

Payment infrastructure and alternative payment methods is driving consumers from cash to digital payments, resulting in high growth in transaction volumes, and accessibility of payment for consumers and eCommerce merchants across Africa.

This growth in volume is resulting in security concerns and for example the Central Bank of Nigeria has announced guidelines for African Payment Providers when it comes to cyber-security. 

Growth in debit cards has outstripped the growth in credit cards globally, with debit cards growing at 17%, and more specifically in the MEA region at 23%. Credit card growth slowed to 11% globally in 2017 which the Capgemini report suggests could be as a result of millennials avoiding credit.

The move to digital payments from cash is being driven by shifting user payment preferences, government facilitation, and rapid growth in eCommerce, causing a 21% growth in non-cash transactions across the MEA region. Banks are feeling more threatened by big tech than by fintech startups when it comes to payments.  

Users are feeling more comfortable with digital vs physical ways of paying online as a result of the convenience.  Imagine the new world of opportunity opening up to African consumer market entrants in terms of available information and the ability to buy and pay for products and services via their smartphone.

As a result of the above payments evolution we'll see a shift in the way that business and payment is done across Africa for eCommerce.  African Payment Solutions, located in Kenya, South Africa and Nigeria are an integral part of this new way of being in what, in traditional terms, was called “acquiring”.  

Through a single API, access to these more diverse payment methods provides convenience for consumers, and a higher level of conversion for global eCommerce merchants entering the territory.

Please click here to contact African Payment Solutions to configure your optimal payment collection service at the checkout.