Africa: e-commerce payment methods by country 2022

As of 2022, cash was the main payment method used in online retail in Morocco, Egypt, and Kenya, accounting for 66 percent, 57 percent, and 40 percent of the total, respectively. On the other hand, cash was not that prevalent in South Africa, where 44 percent of e-commerce payments occurred by card, and 19 percent by bank transfer. In Nigeria, most digital buyers used card-based payments (37 percent) and bank transfer (26 percent).

Cash is still the most popular payment method

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. Since credit cards are still not common in Africa, 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 2021, Sub-Saharan 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.

E-commerce growth in Africa

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 popular e-commerce platform by number of visitors. The number of online shoppers in Africa is forecast to increase in the coming years to exceed 500 million by 2025.