Cash remains the most dominant payment type on the African continent with debit cards coming in as a close second, according to new data from PwC’s Open Banking and Payments Survey.
“This highlights the lack of varied digital payment acceptance mediums and infrastructure across all three African countries,” says Chantal Maritz, payments transformation leader at PwC Africa. “However, another key driver of cash prevalence across Africa is a lack of financial education. Consumers with low financial literacy often overlook indirect costs of cash, such as the cost of their transportation to cash access points, security risks, and loss of interest.
The number of respondents already using mobile phones to make POS payments in Kenya is almost double that in South Africa and in Nigeria , and this is expected to grow over the next few years as mobile phone penetration and mobile money increase further.While the concept of Open Banking remains new, the survey found that respondents are willing to share their data with reputable companies, provided that it benefits them.
While the majority of South African respondents are hesitant to open bank accounts with companies other than banks, Kenyan and Nigerian respondents are two times more willing to open bank accounts with non-banks. South African respondents said they were more likely to open an account with a retailer , compared to the other markets, which highlights the many South Africans who already hold clothing and loyalty accounts with some long-standing retailers.