“2% of global digital commerce, 17% of the world population” -Paystack’s Shola Akinlade reveals why payment solutions thrive in Africa
Massive gap reveals untapped potential for fintech growth across the continent
Africa accounts for 17% of the world’s population but represents only 2% of global digital commerce, creating enormous opportunities for payment companies and e-commerce platforms, according to Paystack CEO Shola Akinlade.
Akinlade, speaking at the Next 3 Billion event by Semafor on the sidelines of UNGA 80, explained that this disparity explains why digital payments have evolved rapidly in Africa, with the continent leapfrogging traditional banking infrastructure in favour of mobile-first financial services.
The most exciting thing is that it’s never been a better time to get payments because the rules are being rewritten as we’re talking. And the reason Africa leads or there is a higher payment volume in Africa is that Africa has 17% of the world’s population, but just 2% of the world’s digital commerce.
Africa currently has 700 million “everyday earners” who will grow to 1 billion within the next decade, representing a massive market for financial services, according to M-KOPA CEO Jesse Moore, who spoke on the same panel.
“There’s just a lot of space,” Akinlade stated, suggesting that Africa’s low baseline in digital commerce creates significant room for expansion as internet penetration and smartphone adoption continue growing across the continent.
