For each individual’s lifestyle there is a vibrant tapestry of daily survival roadmap one that is summed up through diverse payment transactions. From bustling city centers to remote rural communities, the shift away from traditional cash-based transactions is undeniable.
This is why Johnson Akinfenwa, a technical account expert at Flutterwave, gave insights on how to bridge payment gaps for both the ease of business and individual day to day transactions.
According to Akinfenwa, there is a surge in payment adoption driven by mobile penetration and a youthful, tech-savvy population. He said: “While mobile money remains a dominant force in many East African countries, we’re also witnessing the rise of card payments, particularly with the growth of e-commerce. Domestic card schemes like Verve in Nigeria are crucial, coexisting alongside global players like Visa and Mastercard. The diversity is key, as each market has its own nuances, influenced by infrastructure, regulatory frameworks, and cultural preferences. However, there are key challenges hindering wider adoption and seamless experiences for both merchants and consumers.
“These challenges are multifaceted. Infrastructure limitations, particularly in terms of reliable internet connectivity and power supply remain significant hurdles in many areas. Regulatory complexities also play a major role. Navigating different licensing requirements, cross-border payment regulations, and evolving compliance standards across multiple countries can be intricate for businesses.
“Then there’s the crucial aspect of trust. For consumers, security concerns around digital transactions are still prevalent. For merchants, issues like high transaction fees and the complexities of integrating with various payment methods can be deterrents”.
Building confidence and ensuring secure, reliable transactions is paramount.”
Akinfenwa, however, revealed that Flutterwave has been instrumental in addressing some of these challenges. “My work at Flutterwave as a Senior Technical Account Manager involves constantly thinking about how we can leverage technology to bridge these gaps and create more inclusive and efficient payment ecosystems. This includes exploring more robust fraud detection mechanisms and user-friendly interfaces that cater to varying levels of digital literacy.”
He also noted the importance of digital payment localisation. “Localisation is absolutely non-negotiable. A one-size-fits-all approach simply won’t work. This goes beyond just language. It involves understanding local payment preferences – the dominance of mobile money in some regions, the trust in specific domestic card schemes, and the cultural nuances around financial transactions. For example, in Nigeria, integrating with Verve and offering various mobile money options is crucial for reaching a wider audience. In other markets, different mobile network operators and their specific mobile money services hold sway. Successful digital payment solutions must be deeply embedded in the local context, offering familiar and trusted methods, and communicating in a way that resonates with the local population.”
On the future potentials and opportunities for global players in the African digital payments space, Akinfenwa said: “The potential is immense. Africa represents a significant growth market with a rapidly expanding digital economy.”
Pix: Johnson Akinfenwa
