Payment Developments in Africa 2015, Vol. 1
Welcome to the 1st edition of our series on “Payment Developments in Africa”.
Payments has historically been viewed as being a somewhat boring topic within the financial services industry. However, with the more recent rapid pace of change, innovation and growth experienced in the payment sector both globally and within the African Region, there is a changing perception of payments and it is now seen as
potentially one of the most valuable elements of our financial system.
Emerging trends such as mobile payments, digital banking, social media, entrance of new and unconventional players and business models, growing regulatory interest and increasing efficiency in settlement mechanisms are impacting the payments sector around the world. The emerging payment trends are creating both
opportunities and challenges for industry players and regulators alike.
Payments is a key agenda item for many of our Financial Services clients, as such, we at KPMG have committed signifi cant resources to build our Africa Payments Advisory Services. KPMG is positioned with the relevant knowledge and expertise to advise our clients and provide meaningful insights in the area of payments reform, strategy and innovation in Africa and other parts of the world.
Some of the biggest challenges that face development of electronic payments in Africa today include financial inclusion, infrastructure development (specifically sustainable electricity power and telecommunication), low literacy levels, security etc. These challenges present a real and tangible opportunity for the African
continent to continue to develop secure, convenient, efficient payment instruments and channels to drive adoption and inclusion. By leap-frogging older legacy technology and using mobile payments/banking, accompanied by an enabling regulatory oversight framework, Africa has an opportunity to address challenges for
the burgeoning population.
In this payments study, we have profiled the payments systems and developments in three of our key markets in Africa – Kenya, Nigeria and South Africa. We have also explored payment developments in Brazil as comparative study given the similarities in demographics and financial inclusion. To supplement our study we have explored two additional subjects which are relevant in the development of payments within the African region:
› Embedding Payment Card Industry Data Security Standard (PCI DSS) compliance in Banks’ DNA, and
› Interchange and Regulation
We believe that our firm’s keen understanding of the African market with our experience in the payments sector positions us as the preferred adviser to both local and international players seeking to make the most of the payments transformation opportunities in Africa.
We encourage you to contact your local KPMG member firm or any of the contacts listed at the back of this publication for further enquiries.
About David Okwara
Africa, Africa brief, Africa challenges, Africa opportunities, African countries, Angola, challenges, China, development, e-payments, East Africa, economic growth, economy, Ethiopia, FDI, financial services, Foreign Direct Investment, foreign investment, GDP, Ghana, government, growth, infrastructure, investment, Kenya, KPMG, KPMG Africa, Mining, mobile payment, Mozambique, Nigeria, oil, Oil and gas, opportunities, payment systems, private equity, private sector, South Africa, sub-Saharan Africa, Zambia, Zimbabwe