The Director for Africa, Unlimint, Mr. Trevor Goott, speaks about the growth of African payment solutions and Fintech industry, highlighting some of the factors that have contributed to such growth, as well as projections and trends that will shape the ecosystem this year.The year 2022 was regarded as one of severe economic contraction, hyperinflation, and an increase in the expense of life.
New credit or ‘buy now pay later’ products within the payments ecosystem system will emerge and this will facilitate and stimulate online sales. The payment ecosystem is therefore launching products to help facilitate online e-commerce growth in 2023.In the same vein, the payments sector went through a transitional era that fueled intense industry consolidation in 2022.
Unlimint is quick to offer all the local relevant payment methods. We currently have over 1,000 payment methods globally. Our local teams constantly seek out new and up and coming payment methods, and then add that payment method to our portfolio. We do not limit ourselves in terms of payment methods – we are dynamic in that respect. Our strategy is quite simple – and that is to keep current and relevant.
A large portion of the Nigerian population is unbanked for various reasons. They prefer to keep their cash on hand and transact in cash. A lot of this has to do with a lack of understanding or trust in the banking system – but with a robust Nigerian banking sector, this lack of trust is not necessarily valid. By forcing these unbanked people to now interact with a financial institution, they can see for themselves how simple the banking system works and how it can be trusted.
I agree completely with that. There is a move away from cash, driven largely by governments. Yet transactions still need to take place. Therefore online payments, digital services and super apps will continue to grow. The only question is how quickly. The two key drivers of this growth are the rate at which a country moves towards a cashless country, and the rate at which new businesses and service companies move online or add an e-commerce channel to their existing off-line business.