A survey conducted across Africa by RegTech Africa and Agpaytec, has unveiled that consumer preference has shifted from cash payments to digital payment methods, with 91% of the survey’s 2,591 respondents preferring electronic transactions.
The research, titled “African Digital Payment Systems and Consumers’ Experience in 2023,” offers valuable insights into the driving forces behind Africa’s rapidly evolving payment landscape. Notably, 76% of respondents wanted a unified payment platform, advocating for accessible application platforms that could smoothly consolidate their array of payment accounts.
CEO of RegTech Africa, Cyril Okoroigwe, stressed the importance of prioritizing interoperability and user-friendly design in crafting advanced payment solutions to unlock the full potential of digital payments, and drive inclusive economic growth.
AGPAYTECH Ltd’s CEO, Richard Amoah, echoed these sentiments, highlighting the potential of fintech innovation in driving financial inclusion and economic empowerment across Africa.
Mobile banking has become a major component of Africa’s digital financial ecosystem, with 73.5% of respondents using banking apps for various transactions. 85.5% of users leverage these apps for fund transfers and other payments, significantly reducing reliance on physical bank branches, with many opting out of branch visits altogether.
Despite the growing interest in digital solutions, the survey also revealed a lack of consumer awareness regarding Central Bank Digital Currencies (CBDCs). Sixty-nine percent of participants admitted to having no knowledge of CBDCs, which are simply digital versions of a country’s national currency, issued and regulated by the central bank.
Respondents who knew of CBDCs expressed divided opinions, with 19.8% expressing agreement with their issuance, while 47.9% opposed the idea, and 32.3% remained unsure.
Moreover, the report identified persistent challenges hindering the widespread adoption of digital payment systems, with 45.3% of consumers expressing dissatisfaction. High transaction charges, fraud concerns, and perceived security vulnerabilities were cited as primary deterrents, highlighting the need for enhanced safeguards and regulatory frameworks
Looking ahead, the research points to a growing interest in innovative payment trends, including personalised services such as ‘buy now pay later,’ ‘save now buy later,’ WhatsApp banking, CBDCs, and open banking.
Source: APO Group
Derrick Kafui Deti – Digital Economy Magazine
