lluminate Path to Digital Payment Dominance with 91% of participants expressing clear preference for digital payment
LAGOS, Nigeria, 2 April 2024 /African Media Agency (AMA)/- In a groundbreaking survey conducted across the continent, RegTech Africa and Agpaytech have revealed a seismic shift in consumer preferences towards digital payment methods. With 2,591 respondents from diverse regions, the findings underscore a resounding vote of confidence in electronic transactions, with a staggering 91% of participants expressing a clear preference for digital payment approaches over traditional cash methods.
The research, titled “African Digital Payment Systems and Consumers’ Experience in 2023,” sheds light on pivotal insights driving Africa’s rapidly evolving payment ecosystem. A resounding 76% of respondents voiced concerns over the absence of a unified payment platform, advocating for accessible application platforms to consolidate their myriad of payment accounts seamlessly.
Mobile banking emerges as a cornerstone of Africa’s digital financial landscape, with 73.5% of respondents leveraging banking apps for various transactions. Remarkably, 85.5% utilize these apps for fund transfers and other payments, significantly reducing reliance on physical bank branches, with many users eschewing branch visits entirely.
While the survey reflects a burgeoning appetite for digital solutions, it also illuminates significant gaps in consumer awareness regarding Central Bank Digital Currencies (CBDCs). Despite their potential to transform financial infrastructure, a staggering 69% of participants admitted to lacking any knowledge of CBDCs, highlighting the imperative for widespread education initiatives.
Interestingly, when presented with the concept of CBDCs, sentiments were divided, with only 19.8% expressing agreement with their issuance, while 47.9% opposed the idea, and 32.3% remained uncertain. These findings underscore the necessity for comprehensive dialogue and education surrounding CBDCs to foster informed decision-making.
Moreover, the report uncovers persistent challenges hindering the widespread adoption of digital payment systems, with 45.3% of consumers expressing dissatisfaction. High transaction charges, fraud concerns, and perceived security vulnerabilities were cited as primary deterrents, signaling a pressing need for enhanced safeguards and regulatory frameworks.
Looking ahead, the research identifies a burgeoning interest in innovative payment trends, including personalized services such as ‘buy now pay later,’ ‘save now buy later,’ WhatsApp banking, CBDCs, and open banking. As consumers gravitate towards tailored solutions, financial institutions are poised to capitalize on emerging opportunities to meet evolving demands effectively.
“As Africa embraces the digital revolution, it’s imperative for stakeholders to prioritize interoperability and user-centric design in crafting next-generation payment solutions,” emphasized Cyril Okoroigwe, CEO of RegTech Africa. “By addressing consumer concerns and fostering collaboration across the financial ecosystem, we can unlock the full potential of digital payments to drive inclusive economic growth.”
“These findings mark a pivotal moment in Africa’s journey towards a digital-first economy,” remarked Richard Amoah, CEO of AGPAYTECH Ltd. “The overwhelming preference for digital payment solutions underscores the transformative potential of fintech innovation in driving financial inclusion and economic empowerment across the continent.”
Distributed by African Media Agency on behalf of RegTech Africa.
About RegTech Africa
RegTech Africa Insights is a leading research and advisory platform specializing in financial technology and regulatory compliance across Africa. With a dedicated focus on advancing digital financial solutions, we empower stakeholders with actionable insights to navigate the evolving landscape of financial innovation.
Our ecosystem insights provide organizations with comprehensive data, expert insights, and management tools that enable them to discover, analyze and make informed decisions.
Website: www.regtechafrica.com | LinkedIn: @RegTech Africa | Youtube: RegTechAfrica TV
About Agpaytech Ltd
Agpaytech Ltd. is a company pioneering in the Fintech Space with a focused approach to building robust technologies for e-commerce Card Processing Solutions for Payment Service Providers (PSPs). Additionally, we provide Compliance and Regulatory Umbrella, Remittance-as-a-Service, Banking-as-a-service, Foreign Exchange, Cross Border Payments, and digital currency technology. Our services expand from research projects, state-of-industry reports, project assessment, data collection, and consulting services in the FinTech space
Website: https://www.agpaytech.co.uk/ | LinkedIn: @AGPAYTECH LTD
Report available for download here: https://bit.ly/43Jhl60 | https://www.agpaytech.co.uk
Source: RegTech Africa
Contact: Email: info@regtechafrica.com
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