An Exploratory Study on E-commerce, Digital
Payments and Digital Remittances in East Africa
20th November 2013

Christine ...
Why this research?

What factors are influencing consumer use
of digital money and the growth of ecommerce in Kenya (and th...
Data Collection
Data Collection

•  Use of BiNu platform to collect
quantitative data about consumers
•  In-depth interviews with e-commer...
BiNu
+++
•  Fantastic for rapid data collection – 528
responses in less than 2 weeks!!!
•  Small learning curve - easy to ...
In fact….
Findings
E-commerce
Consumers

Products

Businesses

Channels

Payments
E-commerce Pioneers
•  From Travel Industry e.g. Travelstart,
3G Direct Pay
•  Mama Mikes - oldest local online
stores(fro...
E-commerce Trends
•  Buy online pay online -includes receiving
the good or service digitally or physically.
•  Buy online ...
More than

40%

of the respondents in EA

urban cities are e-commerce consumers.
Goods Bought Online

Airtime most
popular…
Perhaps purchasing
airtime via mobile
money?!

n=226
Where are People Buying From
Access to E-commerce
Goods mainly bought
from online sites

n=226

Mobile phones are key
devices in e-commerce
Payment Options for E-commerce
Cash Is still King!
 
•  Mobile money replacing cash: Mobile money was either the most
popu...
Challenges faced by consumers vs. startups
•  Payments: Difficult for consumers to make
payments and start-ups limited by mo...
Future Trends/Discussions
•  Rapid growth of e•   Other Factors :
commerce – pinned to
–  Better regulation
adoption by ut...
Thank You!
Christine Mahihu christine@ihub.co.ke
Leo Mutuku Leo@ihub.co.ke
@iHubResearch | @sokoni | @C_Leo_patra
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An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa

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An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa

  1. 1. An Exploratory Study on E-commerce, Digital Payments and Digital Remittances in East Africa 20th November 2013 Christine Mahihu Leonida Mutuku
  2. 2. Why this research? What factors are influencing consumer use of digital money and the growth of ecommerce in Kenya (and the rest of Africa)?
  3. 3. Data Collection
  4. 4. Data Collection •  Use of BiNu platform to collect quantitative data about consumers •  In-depth interviews with e-commerce/ digital payment start-ups •  Literature Review
  5. 5. BiNu +++ •  Fantastic for rapid data collection – 528 responses in less than 2 weeks!!! •  Small learning curve - easy to set up and no coding required --•  Sample restricted to current demographics using BiNu - mostly urban males aged between 18 and 35 •  Given access is via mobile phone limits number of questions we can ask
  6. 6. In fact….
  7. 7. Findings
  8. 8. E-commerce Consumers Products Businesses Channels Payments
  9. 9. E-commerce Pioneers •  From Travel Industry e.g. Travelstart, 3G Direct Pay •  Mama Mikes - oldest local online stores(from 2001) offering gifting services to Kenyans both within and out of the county. •  Payment options for these businesses were mostly credit and debit cards as the target client was either more affluent or in the diaspora.
  10. 10. E-commerce Trends •  Buy online pay online -includes receiving the good or service digitally or physically. •  Buy online pay offline –includes physical delivery or pick up •  Find online, go to shop to buy and pay offline.
  11. 11. More than 40% of the respondents in EA urban cities are e-commerce consumers.
  12. 12. Goods Bought Online Airtime most popular… Perhaps purchasing airtime via mobile money?! n=226
  13. 13. Where are People Buying From
  14. 14. Access to E-commerce Goods mainly bought from online sites n=226 Mobile phones are key devices in e-commerce
  15. 15. Payment Options for E-commerce Cash Is still King!   •  Mobile money replacing cash: Mobile money was either the most popular or among the top two payment services among businesses interviewed. •  Airline travel related payments rely heavily on credit card transactions.    Credit  Card penetration is only at 10% in Kenya (Travelstart).
  16. 16. Challenges faced by consumers vs. startups •  Payments: Difficult for consumers to make payments and start-ups limited by mobile money and high fees. •  Trust issues of payment platforms and general satisfaction with delivered goods. •  Security challenges for businesses on their payment platforms.
  17. 17. Future Trends/Discussions •  Rapid growth of e•   Other Factors : commerce – pinned to –  Better regulation adoption by utility –  Merging of platforms/ companies and services government services. –  Raised Awareness Levels •  What role will mobile money play in expanding this space?
  18. 18. Thank You! Christine Mahihu christine@ihub.co.ke Leo Mutuku Leo@ihub.co.ke @iHubResearch | @sokoni | @C_Leo_patra

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