#mobilemoney #ecommerce #africa #payments #digitalpayments #fintech #emergingmarkets #growth
Africa is the world’s youngest and fastest-growing continent. Nearly half of Africa’s population is now engaging in online commerce. Mobile payments play a pivotal role in this transformation.
A Brief History:
- Just 10 years ago, over 95% of payments in Africa were still conducted in cash.
- Even today, only 5% of the African population has access to credit cards, and less than 30% of the Sub-Saharan population has access to traditional bank accounts.
- In 2007, M-PESA revolutionised financial services in Africa, starting in Kenya, and has since spread across the continent.
- M-PESA offered a simple solution: a basic money transfer service for the unbanked population to send money via mobile phones.
- What began as a basic service has evolved into a one-stop app for all financial needs. Today, M-PESA has grown into a super app, with mobile banking, payments, loans, and insurance.
Key Trends:
- The success of M-PESA has led to other mobile money players entering the market, including Airtel Money, Orange Money, and MTN Mobile Money.
- Mobile money processing volumes in Africa are estimated to be more than USD 1.8 trillion by 2028.
Impact on eCommerce:
- The adoption of mobile payments has resulted in economic growth across many online industries once deemed inaccessible to the largely unbanked population.
- Local and international merchants are capitalising on this massive transformation that enabled businesses to offer their goods and services through online shopping to hundreds of millions of Africans.