MEMPHIS REISEN

Africa goes digital: Survey reveals overwhelming shift towards cashless transactions – Dailynewsegypt

A landmark survey by RegTech Africa and Agpaytech exposes a dramatic surge in African consumers’ preference for digital payments. The study, titled “African Digital Payment Systems and Consumers’ Experience in 2023,” surveyed 2,591 individuals across various regions, revealing a resounding 91% favour digital transactions over traditional cash.

This data highlights a seismic shift in Africa’s financial landscape. The report underscores the critical role of mobile banking, with 73.5% of respondents utilising banking apps for transactions. Notably, 85.5% use these apps for money transfers and payments, significantly reducing reliance on physical branches.

However, the survey also unveils a knowledge gap regarding Central Bank Digital Currencies (CBDCs). Despite their potential to revolutionise financial infrastructure, a staggering 69% of participants admitted no knowledge of CBDCs. This finding underscores the urgent need for widespread education initiatives.

Interestingly, when presented with the concept of CBDCs, opinions were divided. Only 19.8% expressed support for their issuance, while 47.9% opposed it, and 32.3% remained unsure. This highlights the need for comprehensive dialogue and education surrounding CBDCs to foster 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.

Looking ahead, the research identifies a growing interest in innovative trends like “buy now, pay later,” “save now, buy later,” WhatsApp banking, CBDCs, and open banking. As consumers gravitate towards personalised solutions, financial institutions have a significant opportunity to capitalise on these evolving demands.

“Prioritising interoperability and user-centric design is crucial for crafting next-generation payment solutions,” emphasised Cyril Okoroigwe, CEO of RegTech Africa. “By addressing consumer concerns and fostering collaboration, we can unlock the full potential of digital payments to drive inclusive economic growth on the continent.”

“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 payments underscores the transformative power of fintech innovation in driving financial inclusion and economic empowerment across Africa.”