03 Feb eCommerce Payment in Africa: Growth of Mobile Payment for Online Purchases (Part 1)

eCommerce in Africa is on the rapid rise off the back of increasing bandwidth, consumer connectivity, a burgeoning middle class, and widespread mobile payments like M-Pesa in Kenya and Paga in Nigeria to support online purchases. 

Companies like MallforAfrica, a platform for retailers like Macy’s and Zappos, are bringing goods within reach of African consumers by adding local payment methods including PayPal.

PayPal is slowly crawling across the continent and increasing “issuing” for consumers and “acquiring” for merchants.  There are still a number of restrictions, but long term they are well positioned to be a strong contender for dominance in the mobile and wallet payment sector expected to reach $1 trillion worldwide this year.  

Other payment methods like M-Pesa, Paga, Airtel money are well entrenched.  M-Pesa for example with over 60% market penetration in Kenya will be a hard one to beat.  Consumers don’t change easily when a simple to use, pervasive payment method like M-Pesa is accepted in most places for online and offline transactions.  

Multinational eCommerce companies can get more information about online payment for eCommerce from African Payment Solutions.  African Payment Solutions provide a wide range of key African online payment methods across the continent.

Nigeria is a good case in point.  Although it has had its ups and downs, eCommerce continues to grow unabated.  Nigerian eCommerce and online payment solutions are almost at a mature level where eCommerce companies are accepting Nigerian credit card payments, Nigerian debit card payment and mobile payments with Paga . . continue reading this article Part 2