From the creation? You cannot win. It will be a long, tiring tale without an end. In the end, you will not win the case.

On the one hand 

Research has shown that Africa has become a hotbed for digital payments. Digital payments have helped promote financial inclusion and facilitate economic growth.

They have become a daily tool for earning a living. For improving the availability of financial services. For raising families out of the dungeon of poverty. Ask the PoS operator in your neighbourhood. In the heart of these payments lies a tool. The mobile phone.

On the other hand

This tool has helped push the boundaries of payments in Africa. Research revealed that many African countries have integrated digital payments into their payment infrastructure.

They are reaping the benefits. For instance, in 2020 mobile wallet transactions in Kenya reached 87% of the country’s GDP.

In Ghana, it was equivalent to 82%. Despite the infrastructure deficit, mobile phones are helping to push transactions across borders.

In the long term

Digital payments have helped to grow some economies. These have reduced the reliance on physical cash. Digital payments allow you to receive transactions faster and easily.

According to a report, 57% of Africans do not have bank accounts. Yet, digital payments have helped to improve access to financial services, eliminating barriers.

For instance, the World Bank report said the informal sector is the primary source of employment in Africa.

It accounts for 80.8% of the jobs on the continent. With digital payments, these businesses can access credit and formal financial services. Create a digital financial footprint. Participate in the formal economy. Enable businesses to make payments. You see, it is difficult to yank the mobile phone out of digital payments.

Because of the mobile phone, financial transactions are efficient. Transparent. Secure. Creating an atmosphere for economic growth.  Beneath this growth, however, some engines make it easy for individuals and corporate organisations to enjoy seamless transactions.

There is NIP in Nigeria. South Africa has Payfast. Egypt has Paymob. These machines drive financial inclusion.

They empower financial service providers. Deliver reliable and efficient payment experiences to customers.

The future of digital payments in Africa is assured with these machines. More machines are in the pipeline. These machines will expand the payment frontiers. Deliver innovative solutions. Overcome challenges. Create opportunities.

In the short term

Amid challenges, the digital payments platforms are delivering results. Explaining that to the uninitiated is akin to explaining the life of a camel to a whale. It is intriguing.

This includes people who have an account, but do not transact online. In a KLA poll, 44% of respondents expressed concerns about the security of their personal and financial information while shopping online.

Security threats, including scams and phishing attacks, deter many South Africans from engaging in online shopping, as they feel safer in physical stores.

Leading African fintech company Mukuru has partnered with online payment gateway Payfast to launch a new payment service.

Available as a payment option on Payfast, Mukuru allows merchants to accept cash payments for online purchases.

Building a Digital Bridge to Financial Inclusion in SA’s Informal Sector

This also enables the massive, underserved market either earning cash or who don’t have access to digital payment instruments such as credit cards to access safe online purchasing.

When a consumer selects Mukuru as a payment option on the checkout page of the online store, they are sent a unique code.

They can take this code to any Mukuru pay point nationwide within 36 hours to pay for their purchase. As soon as the cash payment is made, Payfast informs the merchant, and the online order is processed.

With a wide range of cash-to-digital pay-in points across urban and rural areas in South Africa, Mukuru has a strong foothold in the cash economy. This covers customers who prefer to use cash online, to those employed in the informal sector and primarily deal in cash.

Conversely, Payfast, with its expansive network of over 80,000 merchants, is a champion in the digital economy, processing online payments seamlessly for a plethora of services and products.

With millions of people still preferring to transact in cash, the partnership between Payfast and Mukuru will bridge the digital divide by offering a safe and convenient way for cash users to participate in the digital economy.

According to Oliver O’Brien, Group Executive Head of Strategy and Business Development at Mukuru, this solution provides consumers with the ideal bridge between cash and digital.

“We have customers who trust us and are familiar with using our platform, making their transition to the digital economy seamless,” says O’Brien.

The competitive merchant fees and convenience of pay points for this on-demand product for customers makes it an accessible option for all.

“Millions of people in South Africa can now access a range of online stores that cover all categories from entertainment and fashion to groceries and appliances. Merchants can now tap into this sizable and underserved market to unlock more growth opportunities. The partnership with Payfast provides consumers with a safer and more reliable option than cash on delivery that has been fraught with challenges, especially in informal communities,” concludes O’Brien.