20 Feb African eCommerce Payments for Multinationals: Smartphone and Analogue-phone Mobile Payment Methods

Smartphone growth in Africa has doubled in two years and consumer adoption of mobile payments using smartphones in Africa is increasing on the back of this.    The drivers of eCommerce and eCommerce payments are a rising consumer market, increased connectivity, smartphone penetration.  Consumers are hungry for international goods and services, and the ability for multinational eCommerce companies to get paid with African alternative payments like...
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16 Feb eCommerce Payment in Africa: Africa is The Home of Mobile Alternative Payments

The rest of the world thinks it’s a leader in mobile payment and e-payments using a mobile phone.  Africa is a hotbed for mobile phones from feature phones to smartphones.   As necessity is the mother of invention, in the absence of traditional banking and cards, Africans have found simple and effective ways of leapfrogging the rest of the world with mobile payments via USSD and web payments on the back of exponentially increasing smartphone penetra...
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15 Feb African eCommerce Payments: Rwanda Online Acquiring for Multinational eCommerce Merchants

Rwanda is an interesting case in point for eCommerce in Africa when it comes to African eCommerce payments.  The East African “community” is starting to work well with economic reciprocity taking place and the ease of moving money between countries like Kenya, Rwanda and Tanzania. Rwanda has government backing when it comes to tech and connectivity.  As a result of Head of State Paul Kagane’s personal backing of eCommerce and online paym...
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13 Feb Online Payment in Kenya: Credit Card, Debit Card, M-Pesa - Kenyan Shillings and USD

There are some anomalies for multinational eCommerce merchants who are opening up eCommerce and eCommerce acquiring in Kenya. Switching to local banks for local Kenyan currency is supported using PayWeb (Redirect), PayXML (API) and PayBill.  A CVV is required for each transaction.  PayWeb is simple and effective for lower end lower volume merchants and PayXML is where multinational merchants need to be PCI compliant and store and transmit card details to ...
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06 Feb eCommerce Payment in Africa: Growth of Mobile Payment for Online Purchases (Part 2)

There are some very interesting parallels between the nature of the Asia/Pacific market and Africa.  Emerging markets like Asia Pacific and Africa is where the double digit growth of mobile payment methods is taking place.  More developed markets have established banking and methods of payment which are difficult to disrupt. The developing countries have government intervention which catalyses the growth and saturation level of local mobile payment method...
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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 t...
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31 Jan African Payment Solutions: Kenya - Online Payment Billing Descriptors, Chargebacks, Adult and Online Gambling

The banks are risk averse and very strict when it comes to using the correct MCC codes for processing transactions for eCommerce payments.  An incorrect MCC code and billing descriptor will most likely result in repudiation of a chargeback.   Mainstream banks in Kenya don’t do merchant acquiring for gambling, casinos (online gambling), pornography (adult), drugstores (pharmacy). Dynamic billing descriptors are possible in certain instances for mult...
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27 Jan African Payment Solutions: Info for Multinationals Looking for Online Payment in Kenya

China Union Pay has been slower than expected to come to Kenya as a de facto payment method.  Kenswitch, a local payment service provider in Kenya has a number of cards in issue which can make sense for adding to an acquiring suite for eCommerce companies and there is talk of banks like KCB accepting Kenswitch cards. There are between 100,000 and 200,000 credit cards in circulation on Kenya which is less than a percent of the Kenyan population of 45m.  De...
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26 Jan African Payment Solutions: Kenya - Insights into Local Online Payment

Debit cards are increasingly being enabled for use online payment in Kenya.  Banks DTB and KCB are Mastercard licensees.   Nakumatt, a large retailer in Kenya has had prepaid Mastercard debit cards in operation for two or more years.  Initially they were issued as loyalty cards, but because of the proliferation of M-Pesa as the dominating Kenyan alternative payment method, use of it for payment has been slow.   Currently the highest fraud in Ke...
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24 Jan African eCommerce Payments - Cards vs M-Pesa for Kenya Online Payment Solutions

Kenya is as a politically and economically stable African country is fast becoming one of three African hubs for online payment solutions.  Kenya credit card payments, with more than 10m cards in circulation, are rapidly catching up with Kenya’s leading M-Pesa payment solution. With a high ATV of almost $50 a transaction, Kenya follows Egypt, Morocco and South Africa.  One in five Kenyans own a card, and can make card payments, and make an average o...
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