By RARZACK OLAEGBE
You cannot explain the life of a camel to a whale. It cannot make sense. You go explain tire! Where would you start: From the desert? From the wilderness? From Noah’s Ark? From the creation? You cannot win. It will be a long, tiring tale without an end. In the end, you will not win the case.
On the one hand
Research has shown that Africa has become a hotbed for digital payments. Digital payments have helped promote financial inclusion and facilitate economic growth. They have become a daily tool for earning a living. For improving the availability of financial services. For raising families out of the dungeon of poverty. Ask the PoS operator in your neighbourhood. In the heart of these payments lies a tool. The mobile phone.
On the other hand
This tool has helped push the boundaries of payments in Africa. Research revealed that many African countries have integrated digital payments into their payment infrastructure. They are reaping the benefits. For instance, in 2020 mobile wallet transactions in Kenya reached 87% of the country’s GDP. In Ghana, it was equivalent to 82%. Despite the infrastructure deficit, mobile phones are helping to push transactions across borders.
READ ALSO: Alleged abduction: Police rescue driver from mob in Ogun
In the long term
Digital payments have helped to grow some economies. These have reduced the reliance on physical cash. Digital payments allow you to receive transactions faster and easily. According to a report, 57% of Africans do not have bank accounts. Yet, digital payments have helped to improve access to financial services, eliminating barriers.
For instance, the World Bank report said the informal sector is the primary source of employment in Africa. It accounts for 80.8% of the jobs on the continent. With digital payments, these businesses can access credit and formal financial services. Create a digital financial footprint. Participate in the formal economy. Enable businesses to make payments. You see, it is difficult to yank the mobile phone out of digital payments.
Amid challenges, the digital payments platforms are delivering results. Explaining that to the uninitiated is akin to explaining the life of a camel to a whale. It is intriguing.
Because of the mobile phone, financial transactions are efficient. Transparent. Secure. Creating an atmosphere for economic growth. Beneath this growth, however, some engines make it easy for individuals and corporate organisations to enjoy seamless transactions.
There is NIP in Nigeria. South Africa has Payfast. Egypt has Paymob. These machines drive financial inclusion. They empower financial service providers. Deliver reliable and efficient payment experiences to customers. The future of digital payments in Africa is assured with these machines. More machines are in the pipeline. These machines will expand the payment frontiers. Deliver innovative solutions. Overcome challenges. Create opportunities.
In the short term
Amid challenges, the digital payments platforms are delivering results. Explaining that to the uninitiated is akin to explaining the life of a camel to a whale. It is intriguing.
*Olaegbe ([email protected])
