Africa’s search for a cashless economy has accelerated in recent years. Many African governments promote cashless transactions among their citizens. Online sports betting is driving Africa’s cashless economy agenda.
However, the ordinary young African adult today does everything on their phones.
Them teenagers utilize iGaming betting and gaming as a means of transaction, necessitating many to maintain a mobile money account. The cashless economy increases openness and reduces corruption across industries. Although we have seen several digital payment solution channels establish themselves in the region, along with many telecommunication companies dabbling in the financial sector, this has been a testament to the massive penetration growth the financial industry has achieved in recent times.
Particularly, the iGaming industry has grown exponentially in recent years, thanks to the widespread use of mobile phones, which are the first choice for most Africans to conduct online activities, and has influenced the popularity of sports betting among the youth, with many Africans preferring to place bets from the comfort of their homes.
Unbanked people increasingly utilize mobile money, bank cards, and other digital payment methods.
According to the Geopoll study, mobile money is gaining popularity across Africa, especially in the east. About half of Africa’s 300 million registered mobile money accounts are in the east. Most people who utilize these services do so to fill up their betting accounts or for other vital purposes. In 2019, Safaricom, owned by M-Pesa, reports that 25% of its subscribers are bettors utilizing the mobile money service to deposit/receive payment from betting firms via their M-Pesa e-wallet account.
Cashless policy is gaining traction in Africa through e-commerce and betting enterprises.
With a quick and secure payment system, gaming companies may combine local optimization with market development. Some recent papers demonstrate current global trends in online money circulation. Wordplay predicted that e-commerce transactions would hit US$4.6 trillion by 2022, with 140 online payment methods now in use. To reach 68 percent in 2024, internet and mobile channels will each handle 63 percent of transactions. According to Juniper Research’s latest report, Global Digital International Money Transfer Key Trends, Player Innovation & Market Forecasts 2019-2024, Africa will contribute for 15% of total volume, up from 1.1 billion in 2019.
These advantages include enhanced app-based experiences, growing interoperability of mobile money solutions, and very competitive pricing from app-based disruptors and inexpensive mobile phones throughout the continent, the report found.