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First Published 08 September, 2024
While digital payments have gained traction in Africa, low-value, high-volume transactions, often prevalent in informal markets, still rely heavily on cash. Payment experts estimate e-payments to grow by at least 30% per year through 2025, with Nigeria leading the pack.
This presents a few challenges for consumers and businesses. Contactless payments offer a potential solution to these issues with speed, convenience, and security, and are emerging as frontrunners in this evolution. In Africa, where cash remains king, contactless payments can improve the payments ecosystem and boost economic growth.
Contactless payments require customers to tap NFC-enabled cards (the most prominent contactless payment mode) on the reader or a wearable device to complete transactions. It takes 15 seconds to complete a transaction and has the potential to reduce the time spent at checkout and minimise the risk of fraud. Businesses can improve operational efficiency and attract a wider customer base.
