02 Mar eCommerce Payment: Acquiring and Alternative Payment Methods in East Africa

Central banks in East Africa are cooperating to make money transfer work more effectively and to establish a kind of European Community for the region.  They want to regulate rates to improve the flow of money between countries and stimulate economic activity.  

ICT ministers, Heads of State and Finance ministers are cooperating to lower rates and improve cross border flow of funds.  Countries Rwanda, Kenya, Uganda and South Sudan are working together.    

The East African region is doing well from a regional financial perspective.  African Payment Solutions is working with East African banks and alternative payment providers to ensure that multinational eCommerce companies, through a single integration can get paid easily by consumers.    

M-Pesa is the dominant payment method in the region and Visa and MasterCard are pushing credit card and debit  card penetration.  Kenya for example was predominantly private label card driven and by the end of next year, most of these will be part of the schemes.  

According to Forbes Africa, 80% of the world’s mobile money transactions take place in East Africa.  Every day almost $150m is transacted via African alternative payment method M-Pesa and 40% of Kenya’s GDP is done through mobile money.  

Other alternative payment methods like Airtel Money, Orange Money, MTN Mobile Money, yuCash, and Pesapal are way behind and don’t have enough traction at this stage to warrant use by multinational eCommerce companies for eCommerce and online payment through African Payment Solutions, a leading payment gateway provider to international eCommerce companies entering the region.

 

 

Thanks for the inspiration to http://mobilemoneyafrica.com