All you need to know about accepting payments online from Africa
Online payment is fast becoming the accepted means of payment in today’s world. This is primarily due to the convenience, efficiency, and speed of sending and receiving payments. Both developing and developed countries have adopted this payment system. However, electronic payments have roots in the 1870s when Western Union launched the electronic fund transfer (EFT) in 1871.
Since then, the idea of sending money to pay for goods and services without being physically present at the point of sale has transformed the payment system worldwide. In Africa, businesses have evolved from cash-based transactions to online payment as more technology arises to make online payment more secure to improve financial inclusion.
Africa has the fastest-growing rate of mobile penetration and wide adoption of digital payments showing that the population will keep adapting to new disruptions from the payment space to join the developed countries in the world. Furthermore, the ease of adopting mobile phones as part of our daily lives has led to the rapid adoption of mobile money. More people easily carry out financial transactions from their phones rather than walking into a traditional bank.
According to the Wall Street Journal, “nearly half of 1.04 billion registered mobile money accounts worldwide are in sub-Saharan Africa.” Mobile payment in Africa is already a $456bn market with 469 million user accounts in 2019, with 44% of the population owning a device in 2018. Unique mobile subscribers are expected to reach 634m by 2025. In addition, African countries like Kenya, which adopted M-Pesa, have accelerated financial inclusion, and today, more people own a mobile account than a traditional bank account.
According to a report by GSMA, the number of monthly active mobile money accounts topped 300 million, having grown at a rate of 17 per cent year on year In 2020. In addition, the mobile money industry witnessed strong efforts towards cashless societies, enter strategic partnerships to expand the horizons of digital payments, and develop new and robust interoperable payment systems.
The growth of mobile money providers in Africa exceeds the global average, and Africa has the highest proportion of adults with a mobile money account in any region. Despite the challenges of Africa’s online payment ecosystems, the continent has a lot to offer many businesses looking to sell into the continent.
The increasing demand for seamless online payments
As e-commerce and online shopping grows, consumers have a high demand for a frictionless payment experience. Most e-commerce consumers will not make a payment if the checkout process on any selling site is complex. In addition, millennials’ preferences changes during checkout, and more people are likely to avoid shopping at online stores that don’t offer multiple payment options.
Businesses now have to integrate a unified commerce technology that delivers a better shopping experience for their users in any location in Africa, down to last-mile delivery to keep customers coming back.
While many African countries like Nigeria, Kenya, and Ghana have had massive success in improving online and cross-border payments, there seems to be a wide demand for a more seamless payment experience.
Key players in Africa’s payment ecosystem like Klasha are finding more ways to solve consumer-facing problems by allowing businesses to accept payments online in African currencies and offer a seamless online purchase experience for your users.
Accepting Online Payments Seamlessly with Klasha Checkout
Klasha can help you sell online in Africa and receive payments in your local African currency through Klasha checkout. You can integrate the Klasha checkout into any e-commerce platform, website, or app to start receiving payments. Klasha also gives your customer the unique advantage of quick, cost-effective, and direct shipping of physical goods from across the globe to their doorsteps.
Want to start receiving payments from Africa? Create a free Klasha account here