Finding payment solutions to suit Africa

This is the reason why the task at hand is easier than many make it out to be, according to Mark Chirnside, CEO of PayU.

PayU enables and empowers businesses and individuals in the Middle East and Africa to safely transact and easily participate in e-commerce. Recently PayU has partnered with Oltio, a joint venture company between Standard Bank and MTN - a move which now enables consumers to make debit card payments through the mobile payment solution PayD, which introduces a very important market to the e-commerce sector.

Online payments without a card

This partnership enables PayU to tap into the very important mobile-commerce environment in Africa, a market which is showing significant growth, especially in light of the fact that most transactions in the region are still cash based. According to the Economic Commission for Africa, approximately 0.03% of Africans own bank accounts, compared to 6% of Africans who have a mobile telephone, which indicates the need for online payment methods which don't necessarily call for credit cards.

"We are finding African solutions to Africa's problems," says Chirnside. "In the not too distant future we will see a world where the poorest person will be able to buy the cheapest flight by using the channel and payment method that suits them." Not ignoring the obstacles to e-commerce on the continent, the introduction of e-commerce to the continent impacts on more than just an economical level. "To make electronic commerce work on the continent one has to be aware of socio-economic realities - it calls for a micro approach to certain realities, in order to achieve macro outcomes."

Instead of following a top-to-bottom approach when tackling the issue of e-commerce in the region, Chirnside is arguing for a grassroots-up strategy. This approach takes regional, and even communal, differences into consideration, finding particular solutions to the obstacles which unable societies to participate in online commerce.