African Consumers Prefer Digital Forms of Payments – Study
In a survey conducted by RegTech Africa and Agpaytech titled “African Digital Payment Systems and Consumers’ Experience in 2023,” a significant number of consumers in Africa prefer digital forms of payments.
With over 2,591 people surveyed across the African region, a resounding 91% preferred digital transactions over traditional cash, highlighting a shift toward cashless transactions.
The report highlights the pivotal role of mobile banking, with 73.5% of respondents utilizing banking apps for transactions. Notably, 85.5% of users rely on these apps for money transfers and payments, substantially reducing their dependence on physical branches.
Despite their potential to revolutionize financial infrastructure, a significant knowledge gap regarding Central Bank Digital Currencies (CBDCs) is revealed in the survey. A staggering 69% of participants admitted to having no knowledge of CBDCs. This finding underscores the pressing need for widespread education initiatives on the topic.
Opinions were divided when participants were introduced to the concept of CBDCs. Only 19.8% expressed support for their issuance, while 47.9% opposed it, and 32.3% remained unsure. This underscores the necessity for comprehensive dialogue and education on CBDCs to facilitate informed decision-making.
Challenges persist, with 45.3% of consumers expressing dissatisfaction with digital payment systems. High transaction fees, security concerns, and perceived vulnerabilities were cited as key deterrents, indicating a need for stronger safeguards and regulatory frameworks.
Moving forward, the research indicates an increasing interest in emerging trends such as “buy now, pay later,” “save now, buy later,” WhatsApp banking, CBDCs, and open banking. As consumers seek personalized solutions, financial institutions are presented with a significant opportunity to leverage these evolving demands.
