14 Nov Binance Comes To Africa (Part 2) - What Does This Mean For Online Payments Across Africa?

To continue on my previous blog, talking about online payments across Africa and how Binance entering the African continent might impact the way eCommerce and eCommerce payment is done into the future.  

I dealt with the impact as a store of value and how this might be a way for African consumers and investors hedge against the volatility and consistent depreciation and sometimes decimation of local fiat currency for example in Zimbabwe.  

Another impact that a crypto exchange might have on the way business and online payments is done is that you could use mobile money and don’t need a bank account.  Africans are power users when it comes to mobiles and it is second nature to be able to navigate around a phone and even maximising the benefit from feature phones with USSD.  QR codes are the go-to method for crypto and transfer of digital currencies which suits the African market perfectly as smart phone penetration increases. 

Another great use case for a network of exchange on and offramps for example in Kenya, Nigeria and South Africa means that money can be easily transferred between countries for remittances and online payments.  A consumer in Nigeria can go onto Binance and purchase bitcoin using her Naira, send it for example to a Luno accountholder in South Africa for cashing out in Rands - relatively cheaply, quickly and securely. Simple as that - a solution to cross border remittances and transfers.

This could work even more effectively for remittances from Nigerians living and working abroad where they could buy digital dollars for eg USDC on Coinbase and send them to their families who have an account with Binance who can choose to hold their “savings” in USDC (Dollars), and cash it out as and when they need it for consumption. 

As you can imagine, the above system can be used to cost effectively repatriate merchant funds from online payments in Africa to HQ wherever it is in the world in the future. 

There are so many more use cases and new financial services and ways of being coming with crypto and Africa which I promise to cover in my blogs going forward. 

In the meantime, mainstream acquiring is with card and mobile monies so if you are looking for an experienced payment provider for your African online payments and eCommerce payments, click here to connect with us.