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Africa, biometric technology, cryptocurrency, digital currency, digital payment, financial technology, Kenya, Mastercard, Mastercard cryptocurrency, Nigeria, payment methods, South Africa
According to the recent Mastercard Payment Index report, Covid-19-related lock-in helped promote the use of cryptocurrency in three African countries (i.e., Nigeria, Kenya, and South Africa). The report also shows that more consumers in these countries/regions “may use an emerging payment method in the coming year.”
In fact, according to the results of a survey conducted from February 26 to March 10, 2021, many respondents from these countries/regions plan to use cryptocurrency in the coming year. For example, in Nigeria, the country recently banned banks from providing services to the cryptocurrency industry, and 65% of respondents plan to use cryptocurrency for payment.
On the contrary, about 43% of respondents from Kenya stated that they intend to use cryptocurrency when making payments. South Africa (41%) plans to have the least number of consumers using cryptocurrency in the coming year. Raghav Prasad, president of the Mastercard division, commented on the growing demand for this emerging payment method:
This pandemic has changed our views, partly because of unnecessary considerations. To provide the flexibility consumers need and increasingly expect, retailers all over the world need to provide a series of easy-to-use and always-on payment solutions. “
Prasad added that as long-term changes in consumer transactions and payment methods accelerate, MasterCard will “continue to work with merchants, fintech and banking partners to rapidly innovate payment methods.”
At the same time, the research results show that although Nigeria is ahead of the African continent, Kenya is slightly ahead in the number of respondents who “are considering emerging payment methods (such as biometrics, digital currencies and QR codes) as payment methods”. .
According to the payment giant’s index, 99% of respondents from Kenya said they will consider these emerging payment methods, which is 3 percentage points higher than Nigeria’s 96%. South Africa is close behind with a gap of 95%.
In terms of increasing opportunities to use various payment methods, 96% of consumers in Kenya stated that they now “have more payment methods” compared to the same period last year. In South Africa and Nigeria, when asked similar questions, only 86% answered yes. On the other hand, 81% of respondents from Kenya said that digital payments helped them save money. This figure is higher than 78% in South Africa and 77% in Nigeria.
How do you see the preference for emerging payment methods in Africa? You can share your thoughts in the comments section below.
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