The Nature of the African eCommerce Payments Landscape, Vertical Integration, Great Timing.
Click here to contact us now for your leading payment gateway across Africa: https://africanpaymentsolutions.com/countries/#footer
Nature of the landscape
- The payment landscape is made up of payment gateways,
- MNO’s (Safaricom with M-Pesa, Vodafone Cash, MTN Momo, Airtel Money),
- African bank gateways (Ecobank, UBA, Zenith, ABSA (formerly Bqrlcays),
- Big-tech (Facebook, Instagram, Whatsapp trio, PayPal, Google Pay, Square, Alipay, Samsung Pay, Wechat Pay,) and
- Cards masterCard, Visa and China Unionpay.
- Many independent payment gateway players in each jurisdiction or region
- There is a move towards consolidation with outside capital to achieve economies of scale
- and to facilitate interoperability and a single API and cross border user interface in a way that taps into the next billion consumers.
Competing with vertical integration
- To make it easier for the market and to achieve a higher level of adoption,
- there is a blurring of the lines.
- The payments environment is experiencing addition of payments for companies that are providing a related service like ecommerce, deliveries,
- and we are seeing payments companies diversifying into related services like
- ticketing, bookings and marketplaces.
- Local is well competed but it is very rough and ready.
- It is still an open playing field and not an exact science.
- There is a mad scramble to make the SSA market work from a payments perspective.
- There are collaborations, partnerships, horizontal and vertical integrations.
- It is the perfect time with an understanding of the market for payments companies to achieve scale.
- And in my opinion there is no clear winner yet.
- The opportunities, variables and challenges require
- a good local understanding and
- an adaptable, focused and resilient approach
- with the flexibility to to pivot at any time to adapt
- and meet the needs of the ecosystem and market.