The global Pandemic drastically fast-tracked the inevitable adoption of electronic payments. Globally, contactless and electronic payments are thriving, displacing cash payments at a faster rate than many expected. More recently, cryptocurrencies are also emerging as a popular alternative to traditional payments.
In this article, Traderoot explores the growth and potential of the payment sector in Africa.
Evolving Payment Infrastructure in Africa
Thanks to infrastructure investment in Africa, electronic payments, both local and cross-border, are becoming safe, efficient and affordable. Cross-border payment schemes like Transactions Cleared On An Immediate Basis (TCIB) are set to positively impact individuals, businesses and the broader economy of the Southern African Development Community (SADC).
Through easily accessible, cost effective digital financial services TCIB simplifies cross-border payments and enhances financial inclusion in the SADC. This will bring greater financial inclusion and protect people from unsecure cross-border payment solutions.
Traderoot is a certified TCIB integrator. We make it easier for individuals and businesses to transfer money between countries in the SADC region. Our TCIB Integration capability now extends to our core solutions, which will allow Traderoot Africa to add even more value to our clients’ businesses.
The African Mobile Money Opportunity
There remains vast opportunity within Africa for significant growth in terms of payment as infrastructure development improves. Mobile money has been thriving in Africa. The continent proudly boasts some of the highest levels of mobile money usage in the world.
Mobile money services that facilitate both P2P and B2B e-payments are incredibly important in Africa, considering the large number of unbanked people. There is vast opportunity when it comes to Mobile money services, especially for Mobile Network Operators (MNOs) as they already have an extensive network of millions of customers. MNOs don’t even have to develop the product themselves, they can simply leverage off of Fintechs like Traderoot.
“MNOs in African countries can leverage Traderoot’s various white label products to provide financial services including payments, access to credit and more to their existing customers,” says Traderoot Africa Head of Business Development, Francois Roode.
Disruptive innovations: Cryptocurrencies and Blockchain-based payments
Cryptocurrencies are challenging the fiat world in terms of payments. Cryptocurrencies were initially designed as a way to make payments without having to rely on traditional banks. Cryptocurrencies have gained widespread adoption over the past few years. This will likely only increase in future years, especially in African countries given their historical tendency to embrace innovation at a rapid pace. Cryptocurrencies are predicted to play a significant role in the future of payment systems.
As a fintech firm, Traderoot Africa is continuously working towards enabling, facilitating and developing superior payment solutions. If you’re looking to explore, build or tap into the African payment industry, Traderoot can help you. Click here to contact the team at Traderoot today or email us on firstname.lastname@example.org.