To truly understand the role and potential of digital payments in enabling trade in Africa, an interrogation of the current payments landscape on the

Potential of digital payments across Africa

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2021-05-20 17:30:10

To truly understand the role and potential of digital payments in enabling trade in Africa, an interrogation of the current payments landscape on the continent is needed; more specifically; two areas that can accelerate value for trade in the region: interoperability and cross-border transactions.

Adoption of digital payments has increased in the past 12 months; the rapid change was experienced during the pandemic where consumers stayed at home due to various lockdown restrictions and merchants were challenged to find new ways of operating. According to the Visa COVID-19 CEMEA Impact Tracker, contactless payments and eCommerce shopping grew exponentially, with merchants and consumers showing a sustained preference for digital payments.

The evolving payments industry combines a wide variety of financial industry stakeholders, including fintech companies, banks, and telecommunication companies to name a few. Interoperability is key to the sustained growth of the industry and fosters a harmonious, digitally connected ecosystem that benefits economies.

This is even more critical in a region like Africa where we have a vibrant mix of traditional and new players who can help solve some of Africa’s most stubborn financial service challenges.