Streaming issues? Report here
Kenny Maistry 1500 x 1500 2020 Kenny Maistry 1500 x 1500 2020
702 Music with Kenny Maistry
10:00 - 14:00
volume_up
volume_mute

Up Next: 702 Music with Nonn Botha
See full line-up
702 Music with Kenny Maistry
10:00 - 14:00
Home
arrow_forward
Business
fiber_manual_record
Africa
fiber_manual_record
Lifestyle
fiber_manual_record
Opinion

Africa is uniquely poised for an electronic payment revolution

23 September 2019 10:00 AM
Tags:
Banking
Africa
Absa
Bank
FinTech companies
payment
cash
mobile payments
Fintech
money transfer service
Money Transfer
electronic payment
electronic payments
moving money
digital payment
digital payments
mobile payment

Companies that design simple user interfaces and create large networks will dominate, says Absa Corporate and Investment Banking.

Moving money between neighbouring African countries using traditional payment systems often requires sending it around the planet.

Absa Corporate and Investment Banking says it's an absurdity that new, tech-driven solutions intend to avoid.

These solutions are easier to use and more efficient than traditional systems, but challenges remain.

Payment solutions must be flexible, and they can’t operate like current systems that require beneficiaries to carry some of the cost.

Cheapness by itself won’t drive adoption either. Consumers will embrace a slightly more expensive yet transparent process faster than one that is inexpensive, yet obscure or slow.

Balancing these factors is crucial.

Sending money should be as simple as pressing a couple of buttons and seeing the funds in the beneficiary’s account almost instantly.

(Also, read: "How to make it easy for Africans to move money")

By Ndiwulira (https://commons.wikimedia.org/w/index.php?curid=64296214)

Network effects

Besides a simple user-interface, ease-of-use also relates to the size of the network the payment-solution is plugged into.

There’s no point in having a simple process if only a few people in a few places can use it.

Zimbabwe – and its estimated three million citizens living in South Africa - presents an example of the potential complexities of the challenge.

Cash is scarce in Zimbabwe and, as a result, the country has adopted mobile and digital payments. However, workers trying to send money home still rely on the beneficiary’s access to cash wherever they receive payment.

What is needed is the ability to transfer funds that a beneficiary can spend digitally in Zimbabwe’s shops and with its service providers.

The challenges are not technological

The technology required to underpin fast, transparent and cost-effective mobile payments infrastructure exists. The real challenge is one of design and effective network-building so millions can use it across the continent’s 54 countries.

The companies that end up dominating will be those that manage to form alliances and connections between financial institutions, governments, outlets and telecoms firms.

Traditional banks with pre-funded accounts are best placed to drive initial adoption, despite the promise of fintech disruptors.

A new dawn for payments in Africa and the world

Progress has been rapid. A new age of payments infrastructure is about to dawn across the Continent.

Africa is not the only place with patchwork, archaic and inefficient cross- and intra-border payments infrastructure.

The continent’s advanced telecoms infrastructure and lack of traditional banking services make it the ideal proving ground for systems that could end up transforming the entire world.

Those that get it right now will gain a critical advantage in this up-and-coming industry.

This article is brought to you by Absa Corporate and Investment Banking.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:


23 September 2019 10:00 AM
Tags:
Banking
Africa
Absa
Bank
FinTech companies
payment
cash
mobile payments
Fintech
money transfer service
Money Transfer
electronic payment
electronic payments
moving money
digital payment
digital payments
mobile payment

More from Business

gklj7crlgyrcoojoartmjpg

When it comes to funding, IDC keeps shifting goal posts - bemoans entrepreneur

4 December 2020 11:54 AM

IDC head of Corporate Affairs Tshepo Ramodibe explains why the funding application for Green Scooters was rejected.

Share this:
Read More arrow_forward

gepf-logo2png

Govt pension fund recovers from March year-end loss, assets at R1.9 trillion

3 December 2020 9:05 PM

Our long-term focus keeps us steady and we remain resilient says the Government Employees Pension Fund's Musa Mabesa.

Share this:
Read More arrow_forward

saa-planejpg

Govt looking to raise $400 million from sale of stake in bankrupt SAA - report

3 December 2020 7:23 PM

According to a report by Bloomberg News, the funds would be used to re-capitalize the reformed South African Airways.

Share this:
Read More arrow_forward

180124 Matshela Koko 2

'History will absolve us' - Former Eskom exec Matshela Koko at Zondo Commission

3 December 2020 6:38 PM

Various witnesses have implicated Matshela Koko in corruption, but he was his confident self before the State Capture Commission.

Share this:
Read More arrow_forward

myfanparkpng

Local celebrity platform myFanPark extends global reach with US merger

2 December 2020 8:49 PM

The platform offers anything from a personalised recipe from a celebrity chef to a virtual locker room huddle with a sports star.

Share this:
Read More arrow_forward

business-crisisjpg

Got a brand emergency? Call 'Ghostbusters for social media crises'

2 December 2020 8:08 PM

Well-known communicators Mike Stopforth and Victor Dlamini have partnered up to launch a 48-hour social media crisis consultancy.

Share this:
Read More arrow_forward

winning-numberspng

Lotto's consecutive number draw not 'dodgy': All combinations equally (un)likely

2 December 2020 7:23 PM

On Wednesday's PowerBall draw - It's when we see an obvious pattern that we get suspicious says statistics expert Johan Ferreira.

Share this:
Read More arrow_forward

covid-19 coronavirus economy 123rfbusiness 123rflifestyle 123rf recession

The Businesses that boomed in 2020

2 December 2020 7:15 PM

One of the worst years this century did not stop some industries from having their best year yet.

Share this:
Read More arrow_forward

business-closed-company-support-entrepreneur-owner-economy-123rf

'There's been no consultation' - Rasa will fight any stricter Covid restrictions

2 December 2020 6:40 PM

There's no scientific evidence the restaurant industry has contributed to the rising infection rate says Rasa's Wendy Alberts.

Share this:
Read More arrow_forward

Family Christmas holiday dinner festive season 123rflifestyle 123rf

Don't Worry, Be Merry: 'Checkers Xmas ad may be corny, but gets under your skin'

1 December 2020 8:44 PM

Checkers has given its own twist to Bobby McFerrin's 80s hit song. The TV campaign gets Andy Rice's advertising hero award.

Share this:
Read More arrow_forward

More from Africa

Nigerian Naira banknote Ugandan shilling bill 123rfbusiness 123rf

Take heart – African financial markets are innovating, the pandemic shows

24 November 2020 11:35 AM

Covid-19 shows how African financial markets have developed since the 2008 Global Financial Crisis, says George Asante (Absa).

Share this:
Read More arrow_forward

201118-bushirisjpg

Bushiri will return to SA once he is sure of his safety and security - Lawyer

19 November 2020 1:43 PM

According to Human Rights Lawyer Chrispine Sibande, South Africa and Malawi have a 1972 extradition treaty.

Share this:
Read More arrow_forward

201104-bushiri-court-edjpg

'Bushiris to appear in Lilongwe court this afternoon,' says Malawian journalist

18 November 2020 12:52 PM

Daniel Mababa says they have independently confirmed that the preacher and his wife were not on the presidential jet.

Share this:
Read More arrow_forward

201021 Bushiri ECG6

Bushiri's supporters in Malawi believe he did nothing wrong - BBC journalist

16 November 2020 4:36 PM

Nomsa Maseko, who is in Malawi, gives updates on the Bushiri escape and how the locals reacted to the news.

Share this:
Read More arrow_forward

TikTok 123rf 123rfbusiness 123rfworld 123rflifestyle

TikTok signs first African influencer partnership with SA-inspired company

29 October 2020 8:24 PM

You could benefit as TikTok expands its African footprint. The Money Show interviews Webfluential CEO Ryan Silberman.

Share this:
Read More arrow_forward

kabwe-map2jpg

Anglo American being sued for lead poisoning over decades in Zambia

21 October 2020 8:25 PM

A class action suit holds Anglo responsible for lead poisoning from the Kabwe Mine, affecting 'generations of children'.

Share this:
Read More arrow_forward

Nigeria flag nigerian 123rf 123rfAfrica 123rfBusiness

#EndSars: Nigerians in SA march to demand action against police brutality

21 October 2020 1:22 PM

More than a dozen protestors were shot by the police in Lekki District in Lagos on Tuesday.

Share this:
Read More arrow_forward

34a6f903-dbf4-452f-ad0a-f42d2e32ec46.jpg

Vodacom to fight back after Lesotho revokes its operating license

8 October 2020 8:28 PM

Why is Lesotho trying to shut down its biggest mobile operator? Bruce Whitfield speaks to TechCentral editor Duncan McLeod.

Share this:
Read More arrow_forward

Skyscrapers CBD Johannesburg 123rf 123rfbusiness

Long-term investment case for property in Africa remains intact

24 September 2020 1:38 PM

There’ll be many opportunities for frontier investors in the coming years, says Absa's Somaya Joshua.

Share this:
Read More arrow_forward

absa-5jpg

Demand for commodities used in lowering carbon emissions will certainly increase

18 September 2020 12:06 PM

There’s an inevitability to it – these commodities (such as vanadium, if the tech improves) have a bright future ahead of them.

Share this:
Read More arrow_forward

More from Lifestyle

aza-otter-trail-day-1-facebook-plain-1jpg

Keen hiker, Azania Mosaka conquers the Otter Trail

4 December 2020 2:52 PM

After weeks of preparation, Azania tackled one of the most beautiful, yet challenging hikes in South Africa – the Otter Trail.

Share this:
Read More arrow_forward

myfanparkpng

Local celebrity platform myFanPark extends global reach with US merger

2 December 2020 8:49 PM

The platform offers anything from a personalised recipe from a celebrity chef to a virtual locker room huddle with a sports star.

Share this:
Read More arrow_forward

business-closed-company-support-entrepreneur-owner-economy-123rf

'There's been no consultation' - Rasa will fight any stricter Covid restrictions

2 December 2020 6:40 PM

There's no scientific evidence the restaurant industry has contributed to the rising infection rate says Rasa's Wendy Alberts.

Share this:
Read More arrow_forward

Family Christmas holiday dinner festive season 123rflifestyle 123rf

Don't Worry, Be Merry: 'Checkers Xmas ad may be corny, but gets under your skin'

1 December 2020 8:44 PM

Checkers has given its own twist to Bobby McFerrin's 80s hit song. The TV campaign gets Andy Rice's advertising hero award.

Share this:
Read More arrow_forward

webuycars

Shopping for a great deal on a used car? 'We bought 900 cars more than we sold'

1 December 2020 7:29 PM

'This is the best time ever to buy new OR used vehicles'. The Money Show interviews WeBuyCars founder Faan van der Walt.

Share this:
Read More arrow_forward

ecommercejpg

Three questions to ask yourself before being sucked into the Black Friday frenzy

26 November 2020 7:45 PM

There's a danger of making bad choices when logic goes out of the window. Stuff magazine's Toby Shapshak has some pointers.

Share this:
Read More arrow_forward

leonistajpg

Local brewer of agave spirits aiming to change SA culture around tequila

25 November 2020 7:56 PM

Leonista's made from agave grown in the Karoo. The spirit you get from it is unique and high energy says founder Sarah Kennan.

Share this:
Read More arrow_forward

147671446-sjpg

October's 3.3% inflation high: Meat prices won't drop in time for festive feasts

25 November 2020 6:58 PM

Those Christmas braais and roasts are going to cost you. Bruce Whitfield interviews agricultural economist Paul Makube (FNB).

Share this:
Read More arrow_forward

vineyard-sunrisejpg

Boosting wine tourism: Netflix film to star Cape Winelands as travel destination

24 November 2020 8:43 PM

Think what a film like A Good Year did for Provence! Writer/director Richard Truter talks about development of Another Tomorrow.

Share this:
Read More arrow_forward

break bad habits build good 123rf

20 liberating habits to break your limiting ones, by Pepe Marais

23 November 2020 8:07 PM

The Money Show’s Bruce Whitfield interviews Pepe Marais about his new book, "20 Habits That Break Habits".

Share this:
Read More arrow_forward

More from Opinion

saa-planejpg

Govt looking to raise $400 million from sale of stake in bankrupt SAA - report

3 December 2020 7:23 PM

According to a report by Bloomberg News, the funds would be used to re-capitalize the reformed South African Airways.

Share this:
Read More arrow_forward

Family Christmas holiday dinner festive season 123rflifestyle 123rf

Don't Worry, Be Merry: 'Checkers Xmas ad may be corny, but gets under your skin'

1 December 2020 8:44 PM

Checkers has given its own twist to Bobby McFerrin's 80s hit song. The TV campaign gets Andy Rice's advertising hero award.

Share this:
Read More arrow_forward

InaugurationRamaphosa30

50 people who royally 'stuffed' up our fine, glorious land - Alexander Parker

30 November 2020 7:45 PM

From Jan van Riebeeck to Thabo Mbeki, from Sepp Blatter to minibus taxi drivers… these people stuffed up beautiful South Africa.

Share this:
Read More arrow_forward

uif-logo2jpg

'UIF has significant assets' although Nxesi warns of collapse if Ters extended

24 November 2020 6:52 PM

Ters should be extended further says B4SA's Robert Legh. But the Labour Minister is worried about ordinary UIF beneficiaries.

Share this:
Read More arrow_forward

Nigerian Naira banknote Ugandan shilling bill 123rfbusiness 123rf

Take heart – African financial markets are innovating, the pandemic shows

24 November 2020 11:35 AM

Covid-19 shows how African financial markets have developed since the 2008 Global Financial Crisis, says George Asante (Absa).

Share this:
Read More arrow_forward

Poor elderly woman counting money retirement 123rfpersonalfinance 123rf

Make your retirement savings last longer

13 November 2020 11:34 AM

Personal finance advisor Warren Ingram on ensuring you don’t run out of money before you run out of life.

Share this:
Read More arrow_forward

Marmite 123rf 123rfbusiness 123rflifestyle

Marmite applies classic 'love it or hate it' line to those early Christmas ads

11 November 2020 7:18 PM

Marmite's latest campaign features a retching elf! The brand's courage earns it a hero rating from advertising expert Andy Rice.

Share this:
Read More arrow_forward

Ace Magashule

ANC backtracks on August corruption directive, Ace Magashule to stay in office

11 November 2020 6:52 PM

Magashule appears in court on Friday for corruption. The legal process must be fair and without prejudice, says the ANC.

Share this:
Read More arrow_forward

Ace Magashule

No 'Hollywood-style' arrest for Ace - gentleman's agreement for court appearance

10 November 2020 7:02 PM

ANC Sec-Gen Ace Magashule is set to appear in court for corruption. The Money Show interviews News24's Qaanitah Hunter.

Share this:
Read More arrow_forward

190920ndlovugif

'There are wonderful advantages to growing up in a community like that'

9 November 2020 8:07 PM

Bruce Whitfield interviews Ralf Schmitt (Ndlovu Youth Choir) about his attitude to money (hopes, fears, successes, failures, etc.)

Share this:
Read More arrow_forward