In a groundbreaking survey conducted across the continent, RegTech Africa and Agpaytech have unveiled a significant shift in consumer preferences towards digital payment methods
With a diverse pool of 2,591 respondents, the findings highlight a clear inclination towards electronic transactions, with an overwhelming 91% expressing a preference for digital payment methods over traditional cash.
The study, titled "African Digital Payment Systems and Consumers' Experience in 2023" provides crucial insights into the evolving payment ecosystem. A notable 76% of participants voiced concerns about the lack of a unified payment platform, emphasising the need for accessible applications to streamline their multitude of payment accounts.
Mobile Banking dominates East Africa's digital payment landscape
Mobile banking emerges as a key player in Africa's digital financial landscape, with 73.5% of respondents utilising banking apps for various transactions. Impressively, 85.5% utilise these apps for fund transfers and other payments, reducing reliance on physical bank branches.
Despite the growing interest in digital solutions, the survey reveals a gap in consumer awareness regarding Central Bank Digital Currencies (CBDCs). A significant 69% of participants admitted to having no knowledge of CBDCs, highlighting the need for widespread education initiatives.
Opinions on CBDC issuance are divided, with only 19.8% expressing agreement, while 47.9% opposed the idea, and 32.3% remained uncertain. These findings underscore the importance of dialogue and education on CBDCs to facilitate informed decision-making.
Furthermore, the report identifies challenges hindering the widespread adoption of digital payment systems, with 45.3% of consumers expressing dissatisfaction. High transaction charges, fraud concerns, and perceived security vulnerabilities are primary deterrents, indicating a need for enhanced safeguards and regulatory frameworks.
Looking ahead, the research points to a growing interest in innovative payment trends, including personalised services like 'buy now pay later,' 'save now buy later,' WhatsApp banking, CBDCs, and open banking. As consumers demand tailored solutions, financial institutions have the opportunity to capitalise on emerging trends effectively.
"As Africa embraces the digital revolution, it's imperative for stakeholders to prioritise interoperability and user-centric design in crafting next-generation payment solutions," emphasised Cyril Okoroigwe, CEO of RegTech Africa. "By addressing consumer concerns and fostering collaboration across the financial ecosystem, we can unlock the full potential of digital payments to drive inclusive economic growth."
"These findings mark a pivotal moment in Africa's journey towards a digital-first economy," remarked Richard Amoah, CEO of AGPAYTECH Ltd. "The overwhelming preference for digital payment solutions underscores the transformative potential of fintech innovation in driving financial inclusion and economic empowerment across the continent."
