The payment industry in Africa is fast rising, and as the industry continues to grow, the market is expanding and evolving despite the challenging global economic conditions. More often than not, this topic has been seen as boring, but with the recent developments, talking about it has become inevitable.
According to Statista, the total about of investment in the Fintech Industry globally since 2010 has been over $215.4 billion. This shows that the Fintech space is one that is growing and changing.
If you have ever made payment for a product or service using your mobile phone, personal computer or any other smart device, then, you are familiar with the Fintech industry as the payment industry is now commonly called.
This emerging industry may however in future, overrule the traditional banking system in Africa as Africans are gradually getting immersed in it. The payment industry has impacted many local businesses as most business owners now make use of the payment systems provided by companies known as Financial Technology (FinTech) companies.
FinTech refers to new technology that disrupts old or traditional ways of conducting financial transactions. This involves doing away with paper money and human interaction through digitized processes.
In recent times, several FinTech companies have emerged in the African payment industry. The common and widely used FinTech Companies in Africa today include Paystack, Branch, PayWithSpecta, Tala, Paga, Cellulant, Fawry, Jumo, Yoco, Zoona, MyBucks, Fluterwave etc.
These payment trends have created and are still creating both opportunities and challenges for industry players. Some of the biggest challenges include infrastructure development (especially sustainable electricity and telecommunication), low literacy levels, security and a host of others.
The different payment options available in Africa include:
- Cash payment option
- Check / Cheque payment option
- Debit cardCredit Card
- Mobile payment / Electronic bank transfers
Now, let’s look at the common terms associated with the payment or Fintech industry in Africa:
Crowdfunding: This is basically the use of capital gathered from a large set of people individually to finance a business or project. A common example is gofundme.
Chargeback: Let us assume you got debited for a product or service you did not purchase, the refund made into your account or payment card after you lodge a complaint is known as a chargeback.
USSD: It is an acronym for Unstructured Supplementary Service Data. USSD transactions occur during a particular session after dialling a code. The good thing about USSD is that it can be used on both smartphones and feature phones.
Mobile Money: In this case, your mobile phone is used to access all financial services such as payment of goods/services, money withdrawal, money transfer and more.Digital payments/e-payment: This is similar to mobile money. It is a method of making payments using digital platforms such as Paystack.
Mobile wallet: This is more like a wallet or purse but a virtual one.
Internet Banking: Almost all banks have this feature nowadays. It is the use of a web application to perform banking tasks. These days, people get to skip the line, i.e. they don’t have to queue at the bank.
It is safe to say that Fintech is the future of banking and payment industry in Africa as consumers are constantly looking for a single service that can manage all their payments in a simple, fast and secure way.
One of the biggest and best innovations in Africa currently is a platform called PayWithSpecta. PayWithSpecta combines both lending and payments into one solution. So, not only can you get credit, you can settle payments all at once without any stress or challenges.
Some of the benefits, of the PayWithSpecta platform, are;
- You can pay back on installments
- You can payback with a 0% interest if you pay back between 1-3 months.
- You don’t have to expense cash when making payment in-store or online from any of our merchants.
- You also get rewarded in cash when you refer merchants to the PayWithSpecta platform.
- Never worry about getting important bills settled.
Some of the benefits of PayWithSpecta to a business are;
- Increase your profitability
- Increase your customer base
- Enjoy value added services
- Get credit to support your business