As digital payments become more ubiquitous, businesses that offer digital payment services are poised to thrive. Consumers are shifting away from cash and towards digital payments, making it increasingly important for businesses to offer digital payment options. From e-commerce platforms to mobile payment services, there are many types of businesses that can benefit from the growing trend towards digital payments. Here are some businesses in Africa that are poised to benefit from a shift towards digital payments.
E-commerce platforms
E-commerce platforms like Jumia and Konga in Nigeria, Kilimall in Kenya, and Takealot in South Africa have gained popularity due to their ease of use and convenience. Customers can purchase products and services online and make payments through digital channels. However, e-commerce platforms are not just limited to physical products, but also digital products and services. In a cashless era, digital products such as e-books, music, and software can be easily sold and delivered through e-commerce platforms. Additionally, e-commerce platforms can offer subscription-based services, such as monthly product boxes or access to exclusive content.
Digital wallets
Digital wallets such as Flutterwave, Paystack, and Cellulant in Africa allow users to store their payment information securely and make transactions through their mobile devices. Digital wallets are not just limited to mobile devices, but can also be used on desktops and laptops. They offer a range of features, including instant payments, bill payments, and fund transfers. Some digital wallets also offer cashback and reward points for transactions, encouraging customers to use them more frequently.
Subscription-based services
Subscription-based businesses, such as streaming services, meal delivery services, and online fitness classes, can thrive in a cashless era. These businesses can offer customers a convenient and affordable way to access a range of services and can benefit from the ease of digital payments and subscription management. subscription-based services can also offer tiered pricing options, with different levels of access and benefits for customers. For example, a streaming service may offer a basic plan with limited features and a premium plan with additional content and features.
Mobile network operators
Mobile network operators like MTN, Glo, Airtel, and 9mobile offers mobile payment services like MTN Mobile Money and Airtel Money are also likely to thrive in a cashless era. These services offer features such as airtime top-ups, bill payments, and fund transfers to bank accounts. Some mobile network operators also offer partnerships with banks, allowing users to access financial services through their mobile phones. These companies offer digital payment solutions for consumers who do not have access to traditional banking services. Mobile network operators can also offer additional services, such as microloans and insurance, through their mobile payment platforms. These services can provide financial inclusion for individuals who do not have access to traditional banking services.
Food delivery services
Food delivery services that accept digital payments are likely to thrive in a cashless era, as consumers increasingly order meals online and pay through digital channels. n addition to accepting digital payments, food delivery services can also offer other features, such as real-time order tracking and customized delivery options. They can also partner with local restaurants to offer a wider range of cuisine options to customers. Food delivery services like Jumia Food, Uber Eats, and Bolt Food have gained popularity in Nigeria due to their convenience and variety of options. These services offer features such as real-time order tracking and customized delivery options.
Transportation services
Transportation services such as ride-hailing apps and public transportation systems that accept digital payments are also likely to thrive in a cashless era, as consumers increasingly prefer to pay for their transportation digitally. In Nigeria, ride-hailing apps such as Uber, Bolt, and OCar have become increasingly popular due to their convenience and ease of use. These services offer cashless payment options, allowing users to pay for their rides through digital payment platforms like Paga or through their debit/credit cards. In addition, public transportation systems like the Lagos Bus Rapid Transit (BRT) system and some state-run taxi services also offer digital payment options through mobile wallets or contactless payment cards, making commuting more convenient and accessible for passengers.
Online education platforms like Udemy, Coursera, and EdX offer a range of courses and degrees that can be accessed online from anywhere in the world. With the rise of remote work and the need for continuous learning, online education is likely to become even more popular in the future. Digital payments can offer a more convenient and secure way for students to pay for their courses and degrees.
