09 Jun VIDEO AND BLOG: The African Payments Landscape for our Multinational eCommerce Companies
Posted at 12:37h
Sub-Saharan Africa is effectively
divided into three regions
with three leading countries when it comes to scale and digital commerce -
West Africa (Nigeria),
East Africa (Kenya),
Southern Africa (South Africa).
sought after when it comes to digital commerce and payment
critical mass and a
coming together of the elements required for successful eCommerce at scale.
Wholesale vs retail
At a high level payments can be viewed as wholesale (eg Interswitch and Pesalink) and retail (eg APS).
addressing the infrastructural and fundamental functioning of the payments system (wholesale)
payments companies that are merchant and customer facing who ride on those rails to service retail needs.
Local vs international
The African payments space can then be viewed from the perspective of locally grown companies (eg APS, iVeri, DPO, Jambopay) on the one hand,
incoming international entrants (eg Worldpay, Wirecard, PayPal) on the other.
lines are blurring as a result of former African citizens who have started companies from their newly found homes like USA (Flutterwave), and
capital that is finding its way to expand and consolidate through mergers and acquisitions (Apis/DPO)
Many USA vs Chinese companies are rallying for position with their respective payment methods - PayPal and Stripe vs WeChat and Alipay for eg.
Traditional vs digital
Traditional payments still dominate with card and mobile money through banks and MNOs. The traditional payments space consists of a few big plays for pan-African market share and a myriad of one or two country independent paytech players.
Digital payments are still on the ground floor with the biggest activity seemingly focused on government systems, CBDCs having the most energy behind them.
We will start to see cashflow rich digital payment organisations like Stellar investing in local startups that meet the needs of and understand Africa and the African way.