Elevating digital payments in Africa in preparation for a cashless future
Elevating digital payments in Africa in preparation for a cashless future
During the COVID-19 conference, millions of Africans were encouraged to use digital payment platforms. It was previously considered a nice-to-have, but the requirement for contactless transaction methods has elevated it to the status of a requirement – By Akshay Grover, Chairman and CEO of the Cellulant Group
Indeed, while the pandemic has accelerated the adoption of digital payments across industries, demographics, and payment types on the continent, Africa has consistently been at the forefront of the payments space since 2010, with mobile money services at the forefront of the pack since 2010.
Our company, which serves thousands of businesses in various stages of development across 35 African countries, has witnessed firsthand the sheer determination and tenacity that is driving the digital payments revolution.
The entrepreneurial spirit of the continent inspires us to innovate for businesses by connecting people and their resources, and by aligning our strategy to increase digital payment adoption by 50% by 2020.
With the recent expansion of our operations to include eight new countries – including South Africa and Egypt – as well as the Côte d'Ivoire, Cameroon and the DR Congo, Angola, and Ethiopia – we hope to accelerate payment digitization for global, regional, and local businesses while also contributing to the development of a more connected Africa. Because we make it possible for businesses and consumers to interact seamlessly, we are enabling millions of people to transact, access essential services, and even connect with their loved ones when it matters the most. Our accomplishments to date have been impressive, with coverage of 220 million banking, mobile money and card consumers to date. We plan on building on this success by expanding our footprint in the countries where we have already established ourselves. We are convinced that we have only scratched the surface of the opportunity and that there is unrivaled potential in...
Tapping into the Underserved Offline Payments Sector
Mobile money accounts have increased to 1.2 billion, according to a report released earlier this year by the Global System for Mobile Communications (GSMA). Of these, 43 percent of new users are from Africa. This one-year growth rate demonstrates that the offline payment market is substantially larger than the online payment market. In the coming years, we'll be concentrating our efforts in this area, even as we continue to expand our online payment capabilities.
There are 44 million micro, small, and medium-sized enterprises (MSMEs) in Sub-Saharan Africa alone, which account for the vast majority of employment opportunities and serve as the economic backbone of their respective countries. The vast majority of these businesses, as well as the individuals they serve or employ, continue to accept payments in person or by check or money order. While we are enthusiastic about expanding access to these businesses, we are limited in our ability to scale...
Collaborations to Create a Win-Win Ecosystem
When it comes to banking, we are inextricably linked to the ecosystem and see them as partners rather than competitors. The ability to leverage partnerships with a diverse range of industry participants, from banks to mobile network operators and large corporations, is critical to the success of fintech startups.
Why?
When it comes to payments, consumers are increasingly turning to digital methods, whether it is for peer-to-peer transactions or for household goods, bill payment, or accessing basic services such as healthcare and education. As people transition away from cash, this presents tremendous opportunities for retailers and businesses to expand their digital capabilities.
Our mission is to enable businesses to respond quickly to changing market conditions by providing them with the necessary infrastructure and value-added services to accomplish this.
