Tuesday, August 14, 2018
Digital transactions are on the rise, even where internet access lags
- With mobile money markets notoriously unregulated, several states may look to cap fees or tax transactions (eg, Uganda).
- Public pressure will grow on governments (eg, South Africa) and regional economic blocs to lower and harmonise mobile data costs.
- Mooted use of mobile money for social grant payments in South Africa could prompt broader Southern African uptake.
The number of Africans making a digital payment in the last year, on any digital device, has grown significantly.
For much of Sub-Saharan Africa, this share is larger than those with access to the internet. Phone sharing and the use of SMS explain much of the difference. Conversely, in other developing regions or emerging economies, there are many more people online, but they are not digitally transacting.
Regional mobile subscriber penetration still lags global trends, but monetary crises, as well as the lack of formal banking facilities, will see cash increasingly bypassed and new fintech options embraced.
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