Verifone’s infographic ‘Changing face of African payments’ paints an extremely exciting picture of the payments industry in Africa, both now and in the future. Not only are we the fastest growing continent in the world economically, our financial services sector is set to grow by 40% in the next four years. Looking at the infographic, it’s incredible to see that the areas of growth – ATMs, electronic point-of-sale systems and mobile money – are exactly where Paycorp is operating. Let’s take a look at some of the key points and most exciting types of payments in Africa:
10% of the ATMs in Africa are Paycorp machines
According to Genesis Analytics — cited in the infographic — there are 50,000 ATMs in Africa, with 5 ATMs for every 100,000 people on the continent. But in South Africa, that statistic jumps up to 62 per 100,000, according to data from the World Bank. 5,000 of these 50,000 ATMs are Paycorp machines, spanning South Africa, Zimbabwe, Namibia, Botswana, Zambia, Mozambique, Kenya and Ghana. That’s 10% of all ATMs on the continent. Indeed, ATM Solutions was the very first Paycorp product offering, and since the turn of the millennium, our ATMs now allow South Africans easy access to their cash. Self-cashed ATMs are also giving store owners more flexibility over how they manage their business. Instead of keeping large amounts of cash in the till or having to pay cash deposit fees at the bank, store owners can keep their in-store ATMs full using the store’s daily cash takings.
More and more electronic point-of-sale terminals will be needed to accommodate the rising number of debit cards
There has been an annual growth in debit card payments in Africa of 18%, which is 5% higher than the global average. Though the continent might lag behind the rest of the world in terms of the number of individuals who are part of the banking system, we sure are catching up. This rise in the number of debit cards has created a need for more electronic point-of-sale (POS) solutions in retail and hospitality. Data from the Central Bank of Nigeria, highlighted in the infographic, shows there are now 543 electronic POS for every 100,000 people in this country – a number that will surely rise. Our current merchant services offering include traditional point-of-sale, portable credit cards machines, as well as our mobile point-of-sale system.
The use of mobile bank accounts is outpacing that of traditional bank accounts
The fact there are now more mobile money accounts in Kenya, Uganda and Somalia speaks reams about how mobile money has taken off in the last decade – as we discussed in detail in our blog about mobile money in Africa. To accommodate this surge in the adoption of mobile money, 520,000 registered mobile money agent outlets have popped up across the continent. There isn’t any doubt that payments in Africa won’t have any trouble reaching the R 2.2 billion transaction value predicted in the infographic. Paycorp’s Reload Mobile Money offering was devised to give individuals – both those with and without a bank account – more financial freedom, with less of the admin and charges associated with a bank account.
It’s an exciting time to be in the industry for payments in Africa. The fact that we are still a developing country has spurred huge innovation in payment solutions that will only continue as technology advances and the population becomes more connected.
For more information about how Paycorp’s payment solutions are helping southern Africa become a more connected and financially empowered place, download the Paycorp brochure.