The document provides information on payments in Africa, including: 1) Key economic statistics and populations of several African countries like Nigeria, Egypt, and South Africa. 2) The large Muslim populations in some countries poses challenges for credit cards. 3) Africa has 557 million mobile subscribers with 46% penetration, projected to reach 54% by 2020, and a $153 billion mobile ecosystem. 4) Mobile money has become widespread, though 9 out of 10 transactions are still cash/mobile money, with Visa and Mastercard dominating credit purchases.

1. 01
Payments in Africa
B A R C L A Y S A F R I C A G R O U P
1
A C O N T I N E N T O F P O S S I B I L I T I E S

2. PAYMENTSINAFRICA|2017
The State of Africa The Economics
$405Bn
$2500
-13%
14%
186m
Nigeria
$336Bn
$2700
3.4%
12%
93m
Egypt
$294Bn
$7500
-7%
28%
56m
South Africa
Gross Domestic Product (GDP) GDP per Capita Growth rate Unemployment Population

3. PAYMENTSINAFRICA|2017
The State of Africa The Economics
$36Bn
$1563
8.2%
5.3%
22.7m
Cote D’Ivore (Ivory Coast)
$8.6Bn
$2010
5%
1%
11m
Benin
Gross Domestic Product (GDP) GDP per Capita Growth rate Unemployment Population
$4.4Bn
$558
5.4%
7.1%
7.3m
Togo
$14.7Bn
$1093
-10.3%
17%
15m
Senegal
$101Bn
$3196
10.7%
4.3%
34.7m
Morocco

4. PAYMENTSINAFRICA|2017
The State of Africa Socio-Cultural

5. PAYMENTSINAFRICA|2017
The State of Africa Religions
• Credit cards struggle to
gain ground in Muslim
dominated markets
• Muslim population
– Egypt 95%
– Nigeria 48%
– Kenya 7%

6. PAYMENTSINAFRICA|2017
The Digital Landscape
557m
unique
subscribers
46%
penetration
54% by 2020
$153b
Mobile
ecosystem

7. PAYMENTSINAFRICA|2017
The Digital Landscape Mobile – the silver bullet

8. PAYMENTSINAFRICA|2017
The Digital Landscape Mobile – the silver bullet

9. PAYMENTSINAFRICA|2017
The Digital Landscape Mobile – the silver bullet

10. PAYMENTSINAFRICA|2017
The Digital Landscape Mobile – the silver bullet

11. PAYMENTSINAFRICA|2017
The API Economy Mobile – the silver bullet

12. PAYMENTSINAFRICA|2017
Growth Industries
765k in 2016
(143% YoY)
1.5m in 2017
eCommerce Social Media Transport Hospitality
2m trips in 2016
4000+ opportunities
170m in 2016
7/10 ‘net users
1.5m in 2016
(4.3% YoY)
23 African markets

13. PAYMENTSINAFRICA|2017
Micro-everything
M-Shwari – save from KSH 1.00
MicroEverything

14. PAYMENTSINAFRICA|2017
Payments Mobile Money

15. PAYMENTSINAFRICA|2017
Payments Mobile Money

16. PAYMENTSINAFRICA|2017
Mobile Money

17. PAYMENTSINAFRICA|2017
Payment Methods
• 9 out of 10 transactions are still cash/mobile
• Visa (57%) & MC (39%) of credit purchases
• UnionPay
– Partners Societe Generale for Francophone
countries
– East Africa: Kenya Commercial Bank
– SA: BAGL, ABSA & Nedbank accept Unionpay at
ATM & POS
• Mastercard and Egyptian ID system partnership
• NFC
Card

18. PAYMENTSINAFRICA|2017
Payment Methods
• Barkserv Africa – SA & SADC
– daily clearing and settlement
– Direct debit orders & credit payments
– Low-cost, efficient cross-border
payments such as mobile payments to
drive financial inclusion
EFT

19. PAYMENTSINAFRICA|2017
Payment Methods
• Unstructured Supplementary Service Data (54%
more feature phones sold)
– Lowest priced: Charged per session (20c per
20s) vs SMS (50c to R30)
– Phone agnostic
– Menu based interaction
– Accurate inputs
• Short Message Service
– 31b messages in 2016 (KCA)
SMS & USSD

20. PAYMENTSINAFRICA|2017
Payment Methods
Chat banking

21. PAYMENTSINAFRICA|2017
Payment Methods
QR _Codes

22. PAYMENTSINAFRICA|2017
Recommendations in Product Development
• Product-market fit
products
• Culture fit
• Partnerships
• Regulation

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End
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