All banking and payment channels in Africa are showing positive growth – from ATM use to mobile wallets.
According to CR2, an institution focused on self-service digital banking payment methods, the African continent has always led the way in mobile money uptake, a fact boosted by the Covid-19 crisis.
“By 2020, the number of mobile money accounts in Africa passed the 500 million mark, and Africa alone accounted for over 64% of the value of global mobile money transactions, a total of $767 billion. Looking ahead, there are no signs that this growth is slowing down,” he says.
The source also highlights that traditional banking and payment channels such as ATMs and POS are also showing an upward trend in Africa.
“In Botswana, for example, both the volume and value of transactions at ATMs and POS show a steady year-on-year increase. Between January and March 2018, the number of transactions at ATMs was 9.979 million, increasing to 15.241 million transactions in the first quarter of 2020,” he stresses.
In Kenya, a major mobile money market, ATM and POS transactions fell slightly at the beginning of the covid-19 pandemic, but have recovered and continue to show an upward trend.
“Although card penetration in Africa is lagging behind the rest of the world, this is also showing growth. For example, the number of cards issued in Ghana increased by 11% year-over-year in 2018 and 2019, with transaction volume increasing by 51%. But this growth has occurred alongside a strong uptake in mobile money transaction volume, highlighting consumers’ appetite for a variety of payment methods and channels,” it avers.
CR2 also points out that this trend is highlighted in a McKinsey study that includes the results of its “Covid Africa Consumer Pulse Survey” conducted in April last year, showing the likelihood of increased or decreased use of certain banking channels.
“Using Nigeria, Kenya and South Africa as examples, McKinsey predicts significant growth in both online and mobile banking,” it highlights.
