Payment Developments in Africa 2015, Vol. 1

Payment Developments in Africa 2015, Vol. 1

Payments has historically been viewed as being a somewhat boring topic within the financial services industry. However, with the more recent rapid pace of change, innovation and growth experienced in the payment sector both globally and within the African Region, there is a changing perception of payments and it is now seen as potentially one of the most valuable elements of our financial system.

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Emerging trends such as mobile payments, digital banking, social media, entrance of new and unconventional players and business models, growing regulatory interest and increasing effi ciencies in settlement mechanisms are impacting the payments sector around the world. The emerging payment trends are creating both opportunities and challenges for industry players and regulators alike.

Some of the biggest challenges that face development of electronic payments in Africa today include fi nancial inclusion, infrastructure development (specifically sustainable electricity power and telecommunication), low literacy levels, security etc. These challenges present a real and tangible opportunity for the African continent to continue to develop secure, convenient, efficient payment instruments and channels to drive adoption and inclusion.

In this payments study, we have profiled the payments systems and developments in three of our key markets in Africa – Kenya, Nigeria and South Africa. We have also explored payment developments in Brazil as comparative study given the similarities in demographics and fi nancial inclusion.

© 2024 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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