Africa’s Evolving Payments Landscape
A survey exploring modern payment habits in Kenya, Nigeria and South Africa has found cash remains the go-to choice across all markets. On the cashless side, mobile wallet payments are highest in Kenya, while bank transfers are widely used in Nigeria.
Business Insider Africa reported on the survey, conducted by Visa, which found that around 94 percent of Nigerian businesses use cash, compared with 91 percent in South Africa and 71 percent in Kenya. Mobile wallets are used by around 56 percent of Kenyan businesses, versus 14 percent in Nigeria and seven percent in South Africa.
Cash is the highest used option across all markets though relatively lower in Kenya. Mobile wallet payments are highest in usage as well as preference in Kenya.
A separate report from Smile Identity, which specialises in supporting businesses with confirming customer identities, found fraud attempts across Africa have increased by 50 percent in the last two years, with the first half of 2022 alone seeing a 30 percent increase over 2021. It said Buy Now Pay Later platforms were the leading target of fraud, and that despite the overall upward trend, fraud attempts had decreased in Ghana and South Africa.
For the foreseeable future, as businesses adapt to the new virtual reality, we expect to see more and new types of fraud emerge increasingly.
A greater variety of payment options means people have more choice over how they pay and how they manage their finances, however they also present new opportunities for criminal elements. Cash remains the most immediate and secure option for in-person payments, making it an irreplaceable part of evolving payment landscapes worldwide.