IN a groundbreaking survey spanning across Africa, RegTech Africa and Agpaytech have uncovered a significant trend towards digital payment methods among consumers. The research, titled African Digital Payment Systems and Consumers’ Experience in 2023, surveyed 2,591 individuals from diverse regions, revealing an overwhelming preference for electronic transactions over traditional cash methods, with 91% of participants endorsing digital payments.
The findings shed light on key insights shaping Africa’s evolving payment landscape. Notably, 76 percent of respondents expressed concerns about the lack of a unified payment platform, advocating for accessible application platforms to streamline their multiple payment accounts seamlessly.
Mobile banking emerges as a cornerstone of Africa’s digital financial ecosystem, with 73.5 percent of respondents using banking apps for various transactions. Particularly, 85.5 percent leverage these apps for fund transfers and other payments, reducing reliance on physical bank branches significantly.
Despite the growing popularity of digital solutions, the survey also exposes gaps in consumer awareness regarding Central Bank Digital Currencies (CBDCs). A staggering 69 percent of participants admitted to lacking any knowledge of CBDCs, emphasising the need for widespread education initiatives.
Furthermore, sentiments regarding CBDCs were mixed, with only 19.8 percent expressing agreement with their issuance, while 47.9 percent opposed the idea, and 32.3 percent remained uncertain. This highlights the necessity for comprehensive dialogue and education to foster informed decision-making.
The report also identifies challenges hindering the widespread adoption of digital payment systems, with 45.3 percent of consumers expressing dissatisfaction. High transaction charges, fraud concerns, and perceived security vulnerabilities were cited as primary deterrents, indicating a need for enhanced safeguards and regulatory frameworks.
Looking ahead, the research points towards emerging payment trends, including personalised services like ‘buy now pay later,’ ‘save now buy later,’ WhatsApp banking, CBDCs, and open banking. Financial institutions are urged to prioritize interoperability and user-centric design to effectively meet evolving consumer demands and drive inclusive economic growth in Africa.
‘As Africa embraces the digital revolution, it’s imperative for stakeholders to prioritise interoperability and user-centric design in crafting next-generation payment solutions,’ said Cyril Okoroigwe, CEO of RegTech Africa. ‘By addressing consumer concerns and fostering collaboration across the financial ecosystem, we can unlock the full potential of digital payments to drive inclusive economic growth.’
Agpaytech CEO Richard Amoah remarked: ‘These findings mark a pivotal moment in Africa’s journey towards a digital-first economy. The overwhelming preference for digital payment solutions underscores the transformative potential of fintech innovation in driving financial inclusion and economic empowerment across the continent.’