Emerging Payments in Emerging Markets: Africa

A sleeping giant is awakening in the world: the African middle class. GDP growth rates in several countries on the continent are among the highest in the world. The growing middle class will spawn new consumer markets and, with them, the need for a variety of modern payment methods to complement the ubiquity of cash. This study describes the rise of cardholders and cell phone account holders. For example, the roll-out of the South African Social Security Agency (SASSA) Debit cards added 1.9 million people to the nation’s banked population in 2013. The study also looks at the roll out of new acceptance points for emerging electronic payments. M-Pesa’s agency network, which enables people to put money in or draw money out of the mobile money network, has increased from 17,000 in 2010 to about 80,000 independent agents.

It’s a dynamic, rapidly developing picture of growth in payments, an unfolding story that has only just begun. If you want to understand the framework for the future of payments in Africa, “Emerging Payments in Emerging Markets: Africa” is a great resource.