Customer Management

South Sudan – and beyond: Africa continues to make digital payments headlines

South Sudan – and beyond: Africa continues to make digital payments headlines

MTN's mobile money (MoMo) service in South Sudan has teamed up with Onafriq, a pan-African payments provider, to offer inbound international remittance services.

Consumers in the East African country can now receive money from 15 countries, including the UAE, Uganda, Kenya, the US and Australia.

This comes as the MTN Group announced its expansion of its international remittances capabilities by launching 25 additional wallet corridors in 10 new countries.

Meanwhile, a recent report suggests that within Africa as a whole, digital payment across borders is a very fast-growing market. Indeed, Africa’s cross-border payments market is on track to hit US$1 trillion by 2035, according to a new report by venture capital firm Oui Capital.

The report suggests that the market is currently valued at US$329 billion and growing at a compound annual growth rate of 12%. It identifies, not too surprisingly, Africa’s booming digital adoption, increasing intra-African trade, and a surge in mobile money usage as the key growth drivers.

At the same time Oui Capital says: “Legacy rails, double currency conversions, and fragmented regulations still siphon billions in hidden costs,” and adds that the continent continues to have the highest global remittance costs, averaging 7–8%.

Then again, the report argues, there may be investment potential in addressing these inefficiencies, especially when digital innovation is continuing to reshape the landscape. Mobile money is now a key channel, with 30% of sub-Saharan remittances flowing through mobile wallets.



More Articles you may be Interested in...