News

Africa: customers are more into mobile banking payments

Tuesday 5 May 2015 00:39 CET | News

African consumers are more into mobile banking operations for paying bills, making purchases, managing their savings or getting access to cash, especially in sub-Saharan Africa.

Mobile subscriptions in sub-Saharan Africa were set to surpass 635 million by the end of 2014, a figure expected to increase around 930 million by the end of 2019, according to a report issued by the Swedish telecom operator Ericsson, ndtv.com reports.

Data from the World Bank for 2014 also showed that while less than 29% of people aged 15 and over in the region had a traditional bank account, around 10% possessed an alternative accessible by mobile phone. That figure rose to over 50% in countries like Gabon, Kenya and Sudan. Overall, the World Bank found 16% of sub-Saharan mobile users have used their phones for banking purposes a figure larger than any other global region, and ripe for far wider use still.

In 2014 alone, about USD 67 billion in funds were transferred by African expatriates back to people on the continent. With fees charged by mobile banking companies for transactions generally lower than traditional intermediaries like Western Union, the growth potential for financial phone applications appears enormous. For now, however, telecom operators in Africa largely limit mobile services to buying phone credits, paying water and electricity bills, or making money transfers and cash withdrawals relatively basic but considerably handy services to local clients.

The Boston Consulting Group estimates that further development of mobile payment applications could generate as much as USD 1.5 billion in sales by 2019, when it says the number of Africans possessing a mobile phone should increase by another 25%.

Check out our Cross-border Ecommerce Research section here for more info on country-specific ecommerce facts and figures, preferred payment methods, risk and fraud, as well as ecommerce legislation and regulation for mature and emerging markets.


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Africa, mobile banking, app, internet, e-payments, digital, online sales, e-purchase, customer, banks
Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
This article is part of category

Banking & Fintech