11 Sep The Evolving Nature of Online Payments and Choosing a Payment Gateway for Kenya, Nigeria and South Africa
There are some interesting perspectives on the way online payments and digital currencies will evolve over the next ten years and the impact on your choice of a payment gateway for Kenya, Nigeria and South Africa. The rate at which for example Luno crypto exchange is entering markets is quite astounding. They are already in South Africa, Nigeria and Zambia, and I believe will soon be opening exchanges and Ghana, Kenya and Uganda. This could be the infrastructure and the rails on which a new financial system could be running in the future. A conversation with a digital currency market leader on the weekend intimated that Libra (the new Facebook coin) could well expand initially to where capital controls don't exist. In terms of digital currencies, trust will build over time. Stablecoins could well be a bridge from fiat to digital currencies, and while trust levels currently lean towards fiat, stablecoins could get people into the game. Factors retarding the adoption of Bitcoin are utility, trust and distribution. Libra can address many of these issues. Dare I say it, Facebook has a higher level of trust than your average crypto company (and possibly many governments), ease of use, and incredible coverage in terms of distribution. Libra could be good news for the industry from a simple case of “more news = more users” ie the Halo effect. Remittances are one of the key drivers of financial inclusion and digital currencies like XRP and even bitcoin are already making significant inroads in the background. Listening to a podcast between Bill Barhydt of Abra and Nimrod Nehavi of Simplex, this transition from fiat to digital could take some time. Most of Africa is currently covered by a very effective system of mobile money which is becoming increasingly interoperable, and card associations are working hard to increase their market share (ie put a card into the hands of every African). This system works relatively well. Over possibly the next five to ten years, the unbanked, as a result of their dire need for effective and cost effective financial services, may well be the market to be disrupted by digital currencies. In Nimrod’s experience, he says we must not underestimate how long it takes to transition for eg from mobile money use and cards and even bank transfers (from an eCommerce and online payment perspective) to digital money adoption. So whilst we think a lot can happen in 5 years, his opinion is that it could take 10 to 15 years for a reasonable level of adoption. In the meantime, if you looking for a payment gateway to collect money at the checkout from consumers in Nigeria, Kenya and South Africa then African Payment Solutions can provide you with a single API for card and mobile money respectively. This would give you reach to most internet-connected and payment-able Africans, who are looking to purchase eCommerce goods online Thank you Sweetwater Decor for the Takes Time image https://www.sweetwaterdecor.com