The state of payments in Africa

97b8897f620c6dc18f4ea6a53e0e0796?s=47 Ekene Eze
October 15, 2019

The state of payments in Africa

The payments ecosystem in Africa has evolved over time. We've gone from a cash-only society to an instant global payment system. We'll discuss the transitional process that brought us here and how the current state of making/receiving payments in Africa has given us a share of the global economy.

97b8897f620c6dc18f4ea6a53e0e0796?s=128

Ekene Eze

October 15, 2019
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Transcript

  1. The state of payments in Africa We’ve come a long

    way
  2. Bio Ekene Eze Developer Advocate At Flutterwave Ekene Kenny @kenny_io

  3. Let’s go back in time

  4. Early trade processes Bartering is a method of exchange for

    goods and services that thrived in Africa for a very long time Flaws Trade by Barter • No standard value system
 • No solution to double coincidence of wants
 • Diminishing store value • Indivisibility of some goods

  5. Bartering is a method of exchange for goods and services

    that thrived in Africa for a very long time Flaws Trade by Barter • No standard value system
 • No solution to double coincidence of wants
 • Diminishing store value • Indivisibility of some goods

  6. Bartering is a method of exchange for goods and services

    that thrived in Africa for a very long time Flaws Trade by Barter • No standard value system
 • No solution to double coincidence of wants
 • Diminishing store value • Indivisibility of some goods

  7. Bartering is a method of exchange for goods and services

    that thrived in Africa for a very long time Flaws Trade by Barter • No standard value system
 • No solution to double coincidence of wants • Diminishing store value • Indivisibility of some goods

  8. Moving on … Cowries are mostly sea shells often shaped

    into beads for ornamentation or used as coins for trade Cowries Flaws • Tendency for excessive money creation • Inflation vulnerability
  9. Cowries are mostly sea shells often shaped into beads for

    ornamentation or used as coins for trade Cowries Flaws • Tendency for excessive money creation • Inflation vulnerability
  10. Metal Money Flaws • Shortage of metals • High production

    costs • High transportation costs • Non discreteness Metal money was generally accepted for payments and settlement of debts Then comes …
  11. Metal Money Flaws • Shortage of metals • High production

    costs • High transportation costs • Non discreteness Metal money was generally accepted for payments and settlement of debts
  12. Metal Money Flaws • Shortage of metals • High production

    costs • High transportation costs • Non discreteness Metal money was generally accepted for payments and settlement of debts
  13. Metal Money Flaws • Shortage of metals • High production

    costs • High transportation costs • Non discreteness Metal money was generally accepted for payments and settlement of debts
  14. Back to the future Sometime around 2010

  15. • We have paper money
 • Standard monetary value system


    • We have banking processes
 • Dedicated currencies tied to national economies
  16. • Bank transfers were done by visiting the beneficiary branch

    bank to make physical deposits
 • Confirmation of deposits was done by the beneficiary having to visit the bank to check account balances
 • Payments were made with more of cash transactions
 • Then payments moved from cash deposits at the beneficiary branch to inter- branch transfers only within the same bank’s network
 • Payments then moved to interbank transfers from one bank to the other locally.
  17. • Bank transfers were done by visiting the beneficiary branch

    bank to make physical deposits
 • Confirmation of deposits was done by the beneficiary having to visit the bank to check account balances
 • Payments were made with more of cash transactions
 • Then payments moved from cash deposits at the beneficiary branch to inter- branch transfers only within the same bank’s network
 • Payments then moved to interbank transfers from one bank to the other locally.
  18. • Bank transfers were done by visiting the beneficiary branch

    bank to make physical deposits
 • Confirmation of deposits was done by the beneficiary having to visit the bank to check account balances
 • Payments were made with more of cash transactions
 • Then payments moved from cash deposits at the beneficiary branch to inter- branch transfers only within the same bank’s network
 • Payments then moved to interbank transfers from one bank to the other locally.
  19. • Bank transfers were done by visiting the beneficiary branch

    bank to make physical deposits
 • Confirmation of deposits was done by the beneficiary having to visit the bank to check account balances
 • Payments were made with more of cash transactions
 • Then payments moved from cash deposits at the beneficiary branch to inter- branch transfers only within the same bank’s network
 • Payments then moved to interbank transfers from one bank to the other locally.
  20. • Bank transfers were done by visiting the beneficiary branch

    bank to make physical deposits
 • Confirmation of deposits was done by the beneficiary having to visit the bank to check account balances
 • Payments were made with more of cash transactions
 • Then payments moved from cash deposits at the beneficiary branch to inter- branch transfers only within the same bank’s network
 • Payments then moved to interbank transfers from one bank to the other locally
  21. One problem remained

  22. International Transactions Banks? ✘ MoneyGram WesternUnion

  23. You will need to fill approximately 50 different fields in

    the form including both your details and the receivers details, with copies of your ID’s, Physical Address, etc. There are amount restrictions, transaction fees up to $15 per transaction etc.
  24. Then came Fintech

  25. Flutterwave’s Solution • A single API that businesses can leverage

    to send and receive money from within Africa and anywhere in the world
 • We also made it possible for Africans to buy from international marketplaces using our Flutterwave for consumers product called Barter
 • Barter provides virtual $ cards for services like Spotify, AppleMusic etc.
  26. Flutterwave’s Solution • A single API that businesses can leverage

    to send and receive money from within Africa and anywhere in the world
 • We also made it possible for Africans to buy from international marketplaces using our Flutterwave for consumers product called Barter
 • Barter provides virtual $ cards for services like Spotify, AppleMusic etc.
  27. Flutterwave’s Solution • A single API that businesses can leverage

    to send and receive money from within Africa and anywhere in the world
 • We also made it possible for Africans to buy from international marketplaces using our Flutterwave for consumers product called Barter
 • Barter provides virtual $ cards for services like Spotify, AppleMusic etc.
  28. None
  29. So far … • We have processed over NGN 4BILLION

    in transactions • We process payments on over 10 different currencies
 • We are operational in the US, UK and over 10 African countries
 • 70,000 + Merchants across Africa • Opened our merchants to over 1 BILLION customers on Alipay • 30,000 + Customers on Barter
  30. So far … • We have processed over NGN 4BILLION

    in transactions • We process payments on over 10 different currencies
 • We are operational in the US, UK and over 10 African countries
 • 70,000 + Merchants across Africa • Opened our merchants to over 1 BILLION customers on Alipay • 30,000 + Customers on Barter
  31. So far … • We have processed over NGN 4BILLION

    in transactions • We process over 10 different currencies
 • We are operational in the US, UK and over 10 other African countries
 • 70,000 + Merchants across Africa • Opened our merchants to over 1 BILLION customers on Alipay • 30,000 + Customers on Barter
  32. So far … • We have processed over NGN 4BILLION

    in transactions • We process payments on over 10 different currencies
 • We are operational in the US, UK and over 10 African countries
 • 70,000 + Merchants across Africa • Opened our merchants to over 1 BILLION customers on Alipay • 30,000 + Customers on Barter
  33. So far … • We have processed over NGN 4BILLION

    in transactions • We process payments on over 10 different currencies
 • We are operational in the US, UK and over 10 African countries
 • 70,000 + Merchants across Africa • Opened our merchants to over 1 BILLION customers on Alipay • 30,000 + Customers on Barter
  34. So far … • We have processed over NGN 4BILLION

    in transactions • We process payments on over 10 different currencies
 • We are operational in the US, UK and over 10 African countries
 • 70,000 + Merchants across Africa • Opened our merchants to over 1 BILLION customers on Alipay • 30,000 + Customers on Barter
  35. Challenges •Government regulations •Angry customers •Cyber attacks

  36. Challenges •Government regulations •Angry customers •Cyber attacks

  37. Challenges •Government regulations •Angry customers •Cyber attacks

  38. The state of payments in Africa at the moment •

    Instant payments across the world • Biometric payment authorizations • Digital currencies • Global payment cards • One of the fastest banking systems in the world We’ve come a long way to bring Africa to the world, and we are not stopping here!
  39. Thank You