The latest publication from Hamburg-based market research company yStats.com titled “Africa Online Payment Methods 2023” shares insights into the online payment methods market in Africa, analyzing and summarizing the important figures, forecasts, and trends. The publication reveals that in Africa, online payment adoption varies significantly by country.
Digital payment adoption varies by region and country
When examining the different regions in Africa, Eastern Africa displayed the highest mobile money transaction volume in 2022, while Northern Africa had the lowest, indicating a significant discrepancy in digital payment adoption across the continent, as outlined in the yStats.com report. Specifically, less than 1 in 10 adults in Egypt reported making a digital payment in 2022, whereas nearly 8 in 10 adults in Kenya did the same. In comparison to the traditional banking sector, the mobile money sector in Africa has greatly improved accessibility and ease of use for consumers. However, challenges such as a lack of knowledge and relevance continue to be the primary barriers to mobile money account ownership in this region.
Real-time payments in Egypt are expected to grow significantly
As consumers increasingly opt for online payment methods, digital payments, and alternative payment methods are gaining popularity. In South Africa, the value of digital payments is projected to nearly double between 2022 and 2027, with a double-digit CAGR. In Egypt, the number of real-time payment transactions is expected to experience triple-digit CAGR in the same period, indicating substantial growth, according to the new yStats.com report. Nonetheless, not all African countries have high digital payment adoption, as cash remains the dominant online payment method in Morocco, and the percentage of mobile money users in Kenya who made merchant payments in physical stores is more than four times higher than those who made payments online.