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Africa is a vast and diverse continent known for its rich culture, stunning landscapes, and rapidly growing economies. In recent years, the African payment landscape has undergone significant growth, especially in the way people manage their payments across the continent.
In this evolving landscape, cash, mobile money, and bank payments coexist, each playing a unique role in the everyday lives of individuals and the operations of businesses.
Among the different payment choices in Africa, In this blog, we will focus on mobile money, cash, and bank payments and their impact on the African payment industry and the economy.
1. Mobile Money
According to a 2022 report by the Global System for Mobile Communications (GSMA), mobile money account adoption is projected to increase by 39 percent among the sub-Saharan African population by the year 2025. The report further revealed that the percentage of adults with mobile money accounts in the region doubled from 12 percent in 2014 to 21 percent in 2017, and they use their mobile money accounts to pay for goods and services, pay bills, and send payments. This shows that mobile money is massively increasing access to payment services in Africa and is rapidly being adopted on the continent.
Massively gaining popularity, mobile money services across Africa offer a convenient way for people to send, receive, and store money using their mobile phones. Services like M-Pesa, MoMo, Orange Money, and MTN Mobile Money in many countries have increased financial inclusion by providing access to banking services for millions of previously unbanked individuals.
2. Bank payments
Bank payments, including electronic fund transfers, debit cards, and credit cards, are widely used in urban areas and by businesses for more complex financial transactions. African banks have made significant strides in improving digital banking services, making it easier for customers to manage their finances electronically.
Many African governments and financial institutions have undertaken initiatives to promote financial inclusion with banking services. This involves extending banking services to previously underserved populations. Mobile banking apps, debit cards, and simplified account opening processes have made it easier for individuals to access and use bank accounts. bank payments are a fundamental component of Africa’s evolving financial landscape, contributing to greater financial inclusivity, efficiency, and economic growth across the continent.
Despite the rise of digital payments, cash remains a dominant payment choice across Africa. Many still prefer using physical currency for everyday transactions and as a store of value. Cash provides a sense of familiarity as many individuals, particularly in remote regions with limited access to banking infrastructure, prefer to use cash as their go-to means of payment.
Finally, Africa’s payment landscape offers a wide array of choices to meet the diverse needs of its people. From the convenience of mobile money to the reliability of cash and the sophistication of bank payments, there’s a payment method suitable for every payment need, whether for businesses or individuals.
AZA Finance: Streamlining Business Payments and Collections
AZA Finance offers a range of innovative solutions that empower businesses to streamline their cross-border payments and collections processes.
Leveraging AZA Finance, businesses can disburse funds directly into mobile money wallets, catering to the growing number of customers who rely on this convenient and secure method for managing their payments. With our multiple banking partners, they can also make seamless bank payouts.
Businesses across the continent can leverage these payment solutions to navigate the diverse payment preferences of their customers and partners, ultimately contributing to economic growth in the region.
Reach out to our payment experts to learn more. Click HERE.