This archive report was first published on 17 May 2020.
As the world grapples with the COVID-19 pandemic, financial systems across the globe have been put to the test. In Africa, the pandemic has accelerated the adoption of digital payments, with many governments strengthening measures to curb the spread of the virus.
According to a report, six months into the pandemic, digital payments have kept businesses and economies afloat, helping people to reduce contact with the virus. The pandemic has also shown Africa's agility to adopt cashless transactions, with calls for the adoption of digital payments being heeded across the continent.
In Kenya, ramped up e-commerce initiatives have helped support business continuity, especially for Micro, Small and Medium Enterprises. Mobile cash penetration remains one of the highest globally, largely due to M-Pesa, which has over 24.5 million customers and a network of 176,000 agents.
The mobile payments technology has proved to be a key component in Kenya's fight against the pandemic. The fruition of financial inclusion has paved the way for reverse integration with banks linking up their card payment with mobile network operators.
As of December 2019, M-Shwari, a mobile money platform, had over 31 million customers and disbursed over Sh430 billion. The rapid growth in the mobile money industry has led to increased access to affordable financial services.
With the increased use of retail agents and communications technology, bank-led and non-bank led models are converging both e-commerce and online payment platforms. The post-COVID-19 era will recreate an ideal environment for players such as De La Rue, who can assist governments to strengthen digital payment systems.
