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.

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.
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