More Africans gain access to instant payments, as Africa Fintech registers 81% growth – KT PRESS
Mastercard and Cellulant have launched a new product that will enable millions of Africans to pay globally and shop online with or without a bank account, through a simple and secure payment experience.
The partnership with Cellulant plays a role in advancing Mastercard’s worldwide commitment to financial inclusion to bring a total of 1 billion people and 50 million micro and small businesses into the digital economy by 2025.
Launched on the sidelines of the 2022 Global System for Mobile Communications Association Mobile World Congress (GSMA MWC) meeting in Kigali, the partnership will enable customers to pay globally with a virtual Mastercard payment solution linked to the Cellulant wallet, Tingg.
With a population of 1.4 billion, African consumers will be able to shop from well-known global digital brands, pay quickly and securely for leisure shopping, travel, accommodation, entertainment and streaming services at home or on the go.
The announcement comes as digital and online commerce booms across Africa and the need for safer ways to shop online grows.
According to the Economy 2021 Outlook conducted by the Mastercard Economics Institute, 20-30% of the covid-19-related increase in digital commerce will remain a permanent part of total retail spending, and mobile shopping is largely how consumers access these the possibilities.
In sub-Saharan Africa, mobile devices are the primary channel used to connect to the internet. According to the GSMA, smartphone connections are expected to reach 678 million by 2025, with a penetration of 65%.
As a result, alternative payment methods driven by mobile payments have increasingly come to dominate the digital payment landscape. Consequently, consumers increasingly expect access to a wider range of online offers and digital financial services.
Amnah Ajmal, Executive Vice President, Market Development, Eastern Europe, Middle East and Africa, Mastercard said that by focusing on providing multi-use, omnichannel digital payment solutions, Mastercard enables its partners, such as Cellulant, to improve their operational efficiency , diversify their revenue and transition seamlessly into digital commerce.
“We see the growing proliferation of Fintechs as a strategic opportunity to add value by creating more connectivity, better user experiences and greater choice for consumers,” said Ajmal.
David Waithaka, Chief Revenue Officer, Cellulant Group said the seamless payment experiences are the backbone of accelerating economic growth across Africa.
This move is expected to respond to the concerns raised in the first State of Instant and Inclusive Payment Systems in Africa (SIIPS – Africa) report launched at the GSMA MWC by AfricaNenda – which calls for more inclusivity to leverage current payment systems and infrastructure to benefit Africans and push the African Continental Free Trade Area agenda.
At the launch of SIIPS, Rwanda’s Minister of ICT and Innovation, Paula Ingabire asked AfricaNenda to consider researching the Fintech ecosystem to deeply inform market operations.
In a related development, a Mastercard study released on 26 October 2022 showed Fintechs emerging as Africa’s most vibrant sector, with startups in Africa growing 81% in 2021, with South Africa, Nigeria and Kenya as key hubs on the continent.
