Distribution of online payment methods in Africa 2020, by country

As of 2020, cash was the main payment method used in online retail in Egypt, Kenya, and Morocco, accounting for 55 percent, 40 percent, and 41 percent of the total share, respectively. On the other hand, cash was not that prevalent in Nigeria, where 27 percent of e-commerce payments occurred by card, and 24 percent by bank transfer.

Cash is still the most popular

In general, the majority of the transactions in Africa occur in cash. Most countries on the continent rely significantly on cash, which is frequently used also in informal economies. In fact, credit cards are still not common in Africa, that is why other payment methods are usually preferred. The same applies to online retail. When purchasing online, customers often use cash-on-delivery payments. Despite country-specific differences, cash remains the leading payment method in Africa. Nevertheless, 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 owns a bank account.

African e-commerce

E-commerce in Africa has been rapidly expanding in recent years. This growth was due to several factors, including demographic trends as well as the increasingly higher levels of internet penetration. On the continent, online retail generates the highest revenues in Nigeria, South Africa, and Kenya. Jumia, Konga, takealot.com, and Kilimall are among the leading online marketplaces, all local websites. Founded in Nigeria in 2012, Jumia was the most common e-commerce platform by number of visitors. The number of online shoppers in Africa is expected to increase in the coming years to exceed 476 million by 2024.