Africa Trumps World Giants in Payment Tech

Monday, April 27, 2015

Africa is ahead of the US in terms of the rate of payments innovation, while Europe is lagging way behind.

This is according to the Payments Innovation Jury Report. The study is released every two years and details global trends in payments innovation, and future opportunities and challenges for the industry. The report shows both Africa and Asia are leading the first world nations when it comes to payment technology.

Here are 10 of the jurors’ top findings:

1. Business-to-business payment has not received as much attention from entrepreneurs and investors as the consumer sector despite an often stronger business potential.
2. Acquisition by a technology giant or an established payments technology vendor is the most likely exit option for a successful payments start-up, showing how these firms recognise the commercial potential of the sector.
3. Acquisition by banks is the least likely exit option for payments start-ups.
4. Availability of low-cost smartphones rather than improved data connectivity will be the biggest enabler for driving adoption of mobile money in developing economies and thus helping financial inclusion.
5. 70% of jurors said start-ups are in the best position to drive payments innovation. Banks are the least equipped to drive innovation.
6. 93% of jurors feel the developed world has lessons to learn from the developing world when it comes to payments innovation.

Source: ITWeb Africa (link opens in a new window)

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Tags
digital payments, financial inclusion, mobile money