So many countries, so many ways people prefer to transfer funds. This process is one of the vital elements of a business chain. No doubt, knowledge of clients’ payment customs and habits plays a great deal in further growth and development.
Wise payment thinking enables the business to be run with ease and pleasure. In this case, not foreign merchant will be looking for partners, but local entrepreneurs will be searching the way to collaborate.
Previously, it was reviewed a great number of markets around the world. Now it is turn of African direction.
African perspective direction
In fact, Internet technology intervention is gaining pace towards African market. E-commerce obtains more and more dynamic features. A lot of African market places are laying idle, waiting for merchants to participate the cross-border trading.
Due to the lack of operating system, capable to support digital payments, e-commerce sector faces with lots of obstacles to develop faster. However, population here is inspired to go international and to expand their businesses across the local boundaries.
One of the main hurdles in front of e-commerce formation is a common belief, that phishing is a frequent threat on African digital markets. Thus, many entrepreneurs scruple to start online business here.
Another deterrent is shortage of infrastructure development that concerns post offices, broadband and transport system. All these elements implemented, along with ensuring private data security will lead to effective business running results.
Cash over credit cards. Few words about payment methods
Unlike the major part of the world markets, African one generally is flooded with payments via cash on delivery. Most clients prefer cash to pay for online purchases, the exception is South Africa. In this region the majority of transfers are made with credit cards or checks. However, credit card option choice is becoming more and more popular across the African market, despite the fact, that cash on delivery is still used in more than 50% of shopping in the Internet.
As an alternative to credit cards, mobile payments also expand their usage. This method is quite usual in such countries, as Nigeria and Kenya.
Nigeria. E-commerce leader
Almost ninety per cent of Internet users in Nigeria are potential online customers. One third of them tends to make shopping across the Africa. The two main electronic commerce directions are South Africa and Kenya.
On the Nigeria territory act several payment processors. One of the most famous all around the world, is PayPal. Due to its guaranteeing the payment process security, this system is of high demand.
Among popular payment systems Interswitch InternetPay must be mentioned. It provides three ways of purchasing process conducting: direct payments, redirected option and one without reporting information. Most systems implement transactions, only if there is an appropriate e-mail and bank account.
Clients appreciate the most transfers safety, in order to avoid being a victim of fraudulent attack.
Kenya is moving mobile
Payment methods in Kenya experience revolutionary period. Being pretty criminal place, the country decided to prevent dangerous threats by mobile payments penetration. Thus, popular here mobile platform, M-Pesa has turned upside down the customers’ payment thinking.
Cash widespread remains the core challenge to resolve in Kenya. But this region is on the right way to change the situation.
South Africa. E-commerce perspective region
South Africa is considered to be a potential prospering e-commerce market. Nowadays only one fourth of the region population is involved in digital trading. But there are all the ingredients to become a strong online market.
The hitch lays in the imperfection of the payment mechanism, notably the obligation to enter the necessary client’s information every new order.
Clients’ mistrust includes and Egyptian market. But it is only the beginning of the whole obstruction. Moreover, there is neither judicious government regulation of the digital market, nor proper infrastructure to support the electronic commerce.
Despite all this, Egyptian region is quite promising. Investigations have revealed, that population here is ready to commit electronic purchases and to promote online payments via cards, as well as mobile ones.
Now African direction is standing before significant transformations, which require serious approach and maximum efforts. Today’s world is filled with various gadgets and technological innovations, so becoming digital is inevitable in order to be in the loop of modern lifestyle.