How Visa is driving innovation in the digital payments space across SSA

Visa, a global payments technology company, is at the forefront of driving innovation in the digital payments space across Sub-Saharan Africa (SSA). With the rapid advancement of technology and the increasing need for seamless and secure transactions, digital payments have become a cornerstone of economic development on the continent. Michael Berner, Head of Merchant Sales and Acquiring at CEMEA, discussed the current state of digital payments in Africa and the key initiatives Visa is undertaking to promote financial inclusion and empower small and medium businesses (SMBs) with CNBC Africa. Berner highlighted that Africa has seen significant growth in digital payments over the past five years, with about 1.1 billion people now connected. The impact of the COVID-19 pandemic has accelerated the shift towards online shopping, leading to new trends like 'click and mortar' where consumers combine online orders with in-store pick-ups. With the rise of Generation Z, who are increasingly entering the workforce and embracing digital banking, the adoption of digital payments is expected to soar further. One of the critical challenges in Africa is the low acceptance of digital payments by merchants. While progress has been made, with 6.5 million out of 95 million merchants now accepting digital payments, there is still a vast untapped market. Visa is working closely with payment facilitators, including fintech companies, to expand the reach of digital payments to SMBs. The introduction of innovative technologies like 'Tap to Phone' allows merchants to use their smartphones as acceptance devices, eliminating the need for expensive physical terminals and enabling quick and cost-effective payment collection. South Africa has been quick to embrace these innovations, with increasing demand for digital payment solutions among SMBs. Partnerships with fintech companies like Little Fish have enabled small businesses to access comprehensive storefront capabilities, manage online orders, tables, and payments seamlessly. Across the continent, Visa is launching initiatives like Adaptive Home Technology in the Democratic Republic of Congo (DRC) in collaboration with Makuta, aiming to ramp up digital payments adoption and enhance financial inclusion. Berner emphasized Africa's fast-paced adoption of digital payment solutions, driven by the need for efficient and secure transactions. As the continent showcases the rapid advancements in the financial services transaction space, Visa remains committed to powering inclusive growth and driving financial empowerment across SSA.