Africa’s youth is driving digital payments, and here’s what businesses need to know… - Pay@

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Africa’s youth is driving digital payments, and here’s what businesses need to know…
27 July 2022

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Africa’s youth is driving digital payments, and here’s what businesses need to know…

With 70% of sub-Saharan Africa under the age of 301 and the youngest population in the world, Africa is home to one of the most ambitious, highly motivated, and vibrant youth populations in the world. Millennials, the largest living generation of today, together with Gen Z, are set to make up 72% of the world’s workforce by 20292. Their combined purchasing power and influence will shape the world of commerce in the years to come.

From mobile money to e-wallets, ways to digitise cash has evolved and will continue to do so.

Today, we are seeing payments being processed via QR codes, and have become increasingly popular3 in the past year. Banks are now finally incorporating QR code scanners within their apps that are able to scan QR codes from Pay@, Zapper, SnapScan or Masterpass wherever they are presented.

With this generation never knowing a world without mobile, online and app-based services, it’s no surprise that they are driving overall fintech adoption globally.

This also means that businesses can no longer ignore the role that South Africa’s youth plays in shaping the future of our digital payments sector and the positive impact that these trends have on the future of South Africa’s economic development

Through their online purchasing behaviour using the internet, multiple apps, and social media, the youth are playing an active role in society and the digital economy.

Fintechs across the continent have been playing a key role in bringing financial services to the underserved, including mobile phone-based money transfer services, payments and micro-financing services. Now, with their agility and responsiveness to market needs and the acceleration of technology, businesses must get on board and ensure that they are able to offer some of the most innovative and customer-first payment offerings aimed at youth.

At Pay@, we partner with various retail businesses to facilitate multiple payment methods which create convenient and reliable payment experiences.

Our secure and convenience digital payment solutions includes:

 

QR code payments – Customers receive a notification via SMS, MMS, WhatsApp or email to pay a bill. This notification will include different ways to pay, including a link, QR Code, barcode, Scan to Pay inside a bank app or other Mobile Payment Apps

 

EFT payments – Customers receive a notification via SMS, MMS, WhatsApp or email to pay a bill. After selecting Pay with EFT, log in with your online banking details. You can now pay via ABSA, FNB, Capitec, Discovery, Standard Bank, Nedbank, and Investec. Select the account to pay with, and you will receive a notification from your bank once the payment is successful.

 

Smartphone payment – Customers receive a notification via SMS, MMS, WhatsApp or email to pay a bill. Specific mobile payment processing apps can be used to facilitate a payment transaction e.g., Masterpass, Zapper or Snapscan.

 

USSD payment – Call *120*395# on Vodacom and *120*151# on MTN MoMo. Add a bank card (debit, credit or cheque) to any big bank. Customers receive an SMS proof of payment after a successful transaction.

 

Pay@ is confident that digital innovations in the current payment space will continue to emerge, providing consumers with more ways to reach their clients and increase the convenience and efficiency of the front-end payment process.

  1. https://www.un.org/ohrlls/news/young-people%E2%80%99s-potential-key-africa%E2%80%99s-sustainable-development
  2. https://www.globalpayments.com/en-gb/insights/2022/01/31/millennials-and-gen-z-shaping-the-future-of-payments
  3. https://newsroom.paypal-corp.com/covid-19-the-rise-of-qr-codes-as-a-payments-tool