Africa is always in cash. There is a great opportunity to create new solutions that will take africa payment area towards new frontiers. International companies are now flying to the continent to capitalize on the continent’s growing digital economy.
In June 2022Endeavor reported that africa the digital economy is worth 115 billion US dollars due to COVID-19 coupled with a young population and ever-increasing digital penetration rates.
- Ebanx, a Brazilian fintech start-up, has announced its expansion into Africa. With a greater focus on its digital payments side of the business, it expects to emulate its rapid growth in Latin America.
- The 10-year-old unicorn operates in 15 Latin American countries and has processed over 1 billion US dollars in payments.
- One of the possible reasons for this decision could be that Africa shows great signs of rapid digital transformation.
An international fintech startup called EBANX said it wants to expand its operations and payment gateway solution to Africa. EBANX is launched in Africa with Kenya, Nigeriaand South Africa as his first stopovers for his next trip outside Latin America. The 10-year-old unicorn, which operates in 15 Latin American countries and has processed over 1 billion US dollars in payments, wants to focus initially on mobile money Africa.
He carved out a niche for himself by helping global companies like Spotify, and Uber receive payments from customers residing in Latin America. Last October, it filed documents for an initial public offering in the United States, although the process has slowed due to the ongoing economic downturn.
Just as he did in South America, EBANX wants to focus its strategy on collaborations and partnerships with global merchants. The company processes payments for UberAirbnb and over 1,000 digital businesses across Latin America.
In a statement, CEO and co-founder, Joao Del Valleexplained that although africa the digital economy is still nascent, its exciting potential motivated the decision of his company. “africa The fast-growing digital economy is still in its infancy and is expected to grow and recover over the coming decades. Together with local stakeholders, EBANX will be a catalyst to realize even faster the many benefits of a digital economy.”
“Expanding our solutions to African countries is directly linked to EBANX’s mission to create access, and having Pipefy as a merchant makes this moment even more special for us, expanding solutions and services into regions full of opportunities, Paula Belliziathe president of Global Payments to EBANX, said in a statement.
“After studying the territory and building a deep understanding of its actors, entities and local issues, we dive into Africa to provide local payment solutions that will help build the digital economy at a rapid pace, foster broader financial inclusion for its population, and provide greater access to a variety of goods and services from global merchants interested in growing their market share there,” added Bellizia.
It may seem odd that EBANX focuses on Africa instead of turning to Europe and North America for this launch. According to Technological Republicone of the possible reasons for this decision could be that Africa shows great signs of rapid digital transformation.
“Africa is now brimming with growth potential,” Del Valle explained. “Digital adoption and consumption of online goods and services has accelerated rapidly in its countries, and investment capital has flowed into the region.
“africa The fast-growing digital economy is still in its infancy and is expected to grow and recover over the coming decades. Together with local stakeholders, EBANX will be a catalyst to realize even faster the many benefits of a digital economy.”
EBANX further reveals that cloud adoption is rapidly penetrating developing countries, even faster than originally imagined.
According to Quartz Africa, beyond flattering “next frontier” rhetoric, Africa chooses EBANX because developing economies share similar challenges with traditional financial systems designed for a bygone era. Indeed, some South American startups have become a source of inspiration for African startups in similar sectors.
At least in its first year, EBANX is unlikely to operate as an African fintech disruptor, but as a student and potential partner of powerful local players.
According to Tech Cabal, EBANX has already started operations in Kenya, South Africaand Nigeria at the end of August and chose these three countries because, with Egyptthey represent 32% of the continent’s population, 51% of its GDP and 73% of the startup accelerators active in Africa today. Pipefy, a low-code workflow management platform founded in 2015 in Latin America and operating in more than 200 countries around the world, is present in the Africa region with EBANX as payment partner.
In Kenyait will offer a mobile banking service that will allow users to store and transfer money and pay for online purchases through their mobile phone, much like M-Pesa.
In Nigeria, it will offer USSD and bank transfer services. The first will be a session-based protocol that travels through the GSM signaling channel to request information, trigger services, and allow customers to pay for online purchases. The latter will allow customers to quickly and easily pay for their online purchases without the need for a credit or debit card.
Meanwhile, in an effort to address the challenges businesses face in providing flexible payment options, EBANX has launched a new automated payment solution for high-value notes.
For companies looking to sell cloud, enterprise resource planning (ERP), IT services, or SaaS subscriptions, processing high-value B2B (business-to-business) transactions with flexible payment options has proven hard. There are also challenges with how businesses in these service lines can complete high-volume transactions quickly and cost-effectively through an automated checkout process.
The announcement was made at EBANX’s annual Latin America Summit in Mexico. The company announced that the automated checkout process is targeting more companies looking to sell cloud, ERP and SaaS subscriptions across Latin America and other parts of the world.
Since the announcement made by the CEO and co-founder of EBANX, Joao Del Valleat launch, this new solution should automate checkout purchases from $10,000 and above and process large volumes of tickets in one go. Additionally, the solution also aims to ensure that the rapidly growing SaaS market in South America comes with a payment processing solution that will streamline payments between SaaS businesses in Latin America and other places around the world.
Copyright The Africa Exchange. Distributed by AllAfrica Global Media (allAfrica.com)., source English press service