Mobile payment a growing success in Africa

Jun 24, 2011

The total value of mobile payments in Africa should surpass $200 billion (€140 billion) in 2015, according to a new study from Pyramid Research.

Mobile payment solutions are indeed a growing success across the continent, with more than 9.5 million people using the M-PESA
system, E-payement-La vérité reports.

Mobile banking services allow individuals to pay for purchases and utilities, as well as transfer money via their mobile phone.

Danny Zandamela, Chief Executive Officer of South Africa First National Bank, told the publication How We Made It In Africa that the "African continent is really an ideal market for mobile banking services".

An investigation by Slate Afrique magazine explains the reasons for the success.

It puts it down to the simplicity and practical aspect of the payment method, the large mobile phone penetration in Africa and also the security it brings, as it removes the need to carry cash.

Furthermore, according to the news source, it allows users to avoid African bank charges on withdrawals and transfers.