Simpler Ways E-Commerce Businesses Can Collect Payments Across Africa

There has never been a better time for any business to exist online. E-commerce businesses are currently the lifeline of many economies as more and more customers are choosing to buy goods and services online. As a business, there are new ways you’ve had to adapt to in order to reach your customers and target audiences. Let’s take a look at simple ways you and other businesses can make and collect online payments from across the continent and globe.

The Classic Bank Transfer

Electronic funds transfers (or EFTs) are probably the most preferred and used mode of payment and transaction there is. They are easy to complete, especially when you are using your banking app or the USSD code needed to make the transaction. The main thing with EFTs is that you need to have a bank account in order to complete the transactions, and not everyone in your target audience has access to banks and banking services. There are also a few risks tied with banking, such as falling victim to hacking; however, employing features such as two-step verifications as well as other security measures like facial recognition, thumbprints, and pin codes and passwords for logging in can help safeguard you. Remember to always use security features as much as you can, especially on your banking and financing apps, to protect your and your business’s funds.

Mobile Money, The Not-So-New Phenomenon

The use of mobile money has been growing significantly in recent years. In 2019, Africa was the leading region by number of mobile money accounts worldwide. This payment method represents a huge potential for digital payments in a continent where a limited share of the population uses a bank account. One-to-one NFC (near-field communication) technology, which enables smart devices to share information when they are close to each other, is the foundation of mobile payments. Radio waves are used by NFC technology, a subtype of RFID (radio-frequency identification) technology, to recognise encrypted transactions. Mobile payment processing requires physical proximity, which adds an additional layer of protection. When a customer’s smartphone taps an NFC-enabled point-of-sale system, the transaction is performed virtually immediately. Mobile payments are a simple and secure way to take payments that are growing in popularity. If users have set up mobile payments using their smart device, they might no longer need to carry about a conventional wallet. Mobile money also ensures that the store of value remains consistent regardless of currencies. So, it is not just a payment gateway that charges you extra. Besides eliminating the bulky burden of physical wallets and purses, there are a lot of upsides that come with the adoption of mobile payments, such as security, convenience and speed.

E-commerce has been growing in Africa, and businesses need to enable easy collections from their customers. But unlike other markets, Africans use cash, mobile money as well as cards. So as a business, you need to be able to collect in other ways, including collecting from mobile money wallets and offline.

Collecting From Mobile Money Wallets

A secure internet connection is necessary for an online payment method. Customers’ funds are deposited to your account as soon as they use this payment option to make a purchase. Credit cards, debit cards, and Google Pay are a few examples of online payment methods. Mobile money is a secure electronic store of value that is accessible to consumers via their mobile phones. Mobile money is more affordable, secure, traceable, and transparent and is transforming traditional digital payments markets and advancing financial inclusion.

Collecting From Offline Users

Direct payment to the merchant occurs with offline transactions. While no payment gateways are used, banks may be involved if demand draughts or checks are used. It is a form of direct payment that doesn’t entail the transfer of any private information. As a result, it is safer and more transparent. Demand draughts and checks have very little in the way of fees. The senior generation prefers this method since someone must be physically present to take the cash. However, while people are carrying cash, you can also receive payments through agent networks. Agent networks facilitate cash-in and cash-out (CICO) transactions by acting as a crucial point of contact between underprivileged consumers and the suppliers of digital financial services.

How Do You Fit Into Every Market?

When it comes to money matters, it is important to note that your business should employ the kind of software or methods that are accessible to the target audience. So, the first step would be to identify the proportion of your target audience who prefer a certain payment method, and if you can employ more than one, even better. This will set you up for life and ensure that you stay ahead of your competitors. Ensure that you employ gateways that are not only safe for your customers but safe for you too.

Financial Services You Can Trust

When it comes to choosing which third party or mobile financial services company to use, you may be wondering which one is best for you and your business. Just like with everything else, you will need to research which payment method or financial services provider your target audience is familiar with, will learn and adapt to with ease, and that will cost them less than what they are expected to pay. Providing easy access to funds and transactions for your customers is one of the key factors in ensuring retainer business. Customers want to pay with ease all the time, and you want to give them accessible options so that they do not get discouraged and log out of your site. Financial services providers connect mobile money wallets to enable cross-border payments for remittance companies, financial service providers, and global merchants, and simplify transactions through cashless payments that enable real-time business growth with quick, scalable options.

Final Thoughts

The world of e-commerce is here, and more and more people are accessing it for its simplicity and convenience. Give your business the boost it needs and partner with financial services providers that put your business’s needs first and reach your customers with ease – all of them.