The Future of Payments in Africa — Osahon Akpata
Earlier this month, McKinsey & Company published a report, The Future of Payments in Africa, and I found it to be quite informative as a professional working in the payment ecosystem on the continent.
Africa’s domestic payments revenues are growing almost 3 times as fast as global payments with an expected increase of 20% per year up to $40 billion in 2025. The use of cash dominates consumer payments transactions at over 93%, however, electronic payments are growing fast which speaks well for the prospects of those players providing solutions to meet customer needs. This growth will not be even, however, with 5 African countries, Egypt, Ghana, Kenya, Nigeria, and South Africa, representing half of the revenue opportunity.
The report notes that youthful urban dwellers, economic growth, technological innovation, and improvement of payments infrastructure are shaping the future of payments in Africa, though the impact of cryptocurrencies and open banking is harder to predict. See the full article below.