Kenya boasts high mobile money potential
11 June 2014, 10:30
Nairobi - Kenya has continued to show one of the highest potentials
in mobile payment growth in the Africa and the Middle East, in contrast to
other big economies in the regions.
This is according to a report by statistics think-tank,
According to the firm, Kenya, which boasts the
internationally-acclaimed M-PESA rated higher than South Africa, said to be the
most technologically-advanced economy in the continent.
In South Africa, the most significant alternative
payment methods were bank transfers and PayPal.
“In South Africa, the most significant alternative
payment methods were bank transfer and PayPal, though usage rate of these
methods trail credit card use,” read the ystats.com report on alternative
The report however stated that mobile payment growth was
the trend to watch in the Middle East and Africa, where banking services
penetration was low.
Ystats reported that cash on delivery remained the major
payment method in growing B2C e-Commerce in the Middle East and Africa.
“This method accounted for almost 50 percent of
e-Commerce transactions in the region, while payment by cards accounted for a
third,’ the ystats.com report stated.
The findings come after a report by PEW Research Center
early in the year.
It ranked Kenya as the country with the most popular
mobile payments in Africa.
The research stated that nearly seven-in-ten Kenyans (68
percent) who owned a cell phone said they regularly used their mobile device to
make or receive payments.
Other countries ranked highly in the research after Kenya
include Uganda, South Africa, Senegal, Nigeria and Ghana in that order.
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