Tracking emerging payment trends on the African continent

The African electronic payment industry has been on a steady rise, generating approximately $19.3 billion in revenues in 2019, with around $10 billion coming from domestic electronic payments, according to McKinsey. Kennedy Mubita, Ventures Lead Africa Middle East at Standard Chartered Bank, shed light on the emerging payment trends on the continent and the opportunities for Kenyan customers to embrace digital payments. One key theme that emerged from the discussion was the shift towards non-contact or contactless payments, driven in part by the COVID-19 pandemic. This transition not only addresses health concerns but also streamlines the checkout process, especially for small value transactions. However, challenges such as lack of integration between cashless systems across Africa still hinder widespread adoption. Mubita emphasized the need for interoperability between closed-loop payment platforms to reduce costs and improve accessibility. He highlighted the role of market forces and legislation in driving harmonization and ensuring that no one is left behind in the digital payment revolution. Moreover, Mubita suggested key policies for governments to create an enabling environment for digital payments, including initiatives to digitalize government operations, establish digital identities, enhance infrastructure, and promote faster payments. By addressing these challenges and seizing opportunities, African countries can pave the way for a more inclusive and efficient digital payment ecosystem.