Mobile Payments, a great alternative for a cashless society
According to the BussinesTech article, South Africa does have a large population of unbanked or underbanked people – estimated to be at around 11 million people out of a total population of 58.93 million. Besides, people in the country never gained full trust in credit card payment option due to fraud. However, if we look at the number of mobile phone connections we find more than 103 million, 176% more connections than the total population of the country.
This provides an ideal terrain for direct carrier billing, a payment method which allows users to pay for digital services as part of their monthly bill, offering them an enriched and convenient purchasing experience.
According to a Research&Market report, the mobile payment industry in South Africa is expected to record a CAGR of 12.9% to reach US$ 29,424.3 million by 2025. Besides, based on the Africa Report, the region leads the world in mobile money transactions.
A booming market that represents a unique opportunity for both carriers and merchants.
Regulation in the South African Mobile Payments ecosystem
South Africa is no exception to the other African countries that are all opting for controlled regulation of digital payments in their most global scope.
In this article you will find out more information about Regulation in the South African Mobile Payments ecosystem:
The Competition Commission has published a paper on competition in South Africa’s ‘digital economy’ and the measures that can be introduced to promote inclusion.
“Banks, mobile network operators and the private financial sector role-players should begin the relevant innovations and product offerings that will deliver a cashless future for South African consumers.
“The challenges that South Africa has faced regarding the payment of social grants over the years have been more starkly pronounced during the current Covid-19 pandemic, as millions of citizens must collect relief grants in-person from physical pay-points.”