17 Dec High Level on African Payments for Multinational eCommerce Companies

eCommerce is surviving and thriving across Africa and the main hubs to start with are Nigeria, Kenya and South Africa.  They each have their anomalies and we will explain a little about each of them.  

Nigeria is a highly regulated market when it comes to payments and businesses like betting, forex and online gambling.  It has a very well developed payments system dominated by scheme cards and a card called Verve, and bank transfer as a result of all banks being linked via a central organisation called NIBBS.   Nigerians are well mobile-connected. Feedback from our multinational eCommerce companies is that establishment in this market, whilst massive, can be quite challenging. Acquiring in Naira and repatriating proceeds can have its challenges too.

Kenya is a relatively easy market for eCommerce companies to expand to.  Kenyans are a gentle, relatively tech savvy nation, and movement of funds cross border is fluid.  Most Kenyans have an M-Pesa account, internet connectivity is widespread, and payments work well. Establishing a company is doable, especially if you have a local shareholder who has a PIN which is needed for tax compliance.   

South Africa is a mature market and has a well developed infrastructure.  It has a high gini-coefficient and most of the middle and upper income South Africans have a credit card and can shop online.  Alternative online payment methods haven’t gained much traction so are not essential at the checkout. There is a fair bit of red tape around establishing a local legal entity but its doable as professional services and infrastructure work well.  South Africa has strict capital controls so repatriation of funds acquired by multinational eCommerce companies requires Reserve Bank approvals and permissions.

If you want a smooth ride when it comes to online payments for your eCommerce expansion to South Africa, Nigeria and Kenya then click here to contact us at African Payment Solutions