Ripple, one of the leaders in enterprise blockchain and crypto solutions, announced its entry into Africa in partnership with MFS Africa, a leading digital payments gateway. The new partnership will see MFS Africa using Ripple’s On-Demand Liquidity (ODL) solution for crypto-enabled payments to make it easier than ever for consumers and businesses in Africa to make real-time payments with their mobile phones across borders – all powered by Ripple’s financial technology, RippleNet.

Africa has enjoyed an early mover’s position in the application of fintech in effecting financial inclusion and economic transformation. The success of the continent’s mobile money revolution caught the world’s attention over a decade ago, bringing into sharp focus the potential inherent in the combination of finance and technology – with innovation and empathy. The system was simple, scalable, accessible, and made possible by unlikely partnerships. It enabled real-time transactions, and brought millions of unbanked individuals into the financial mainstream.

“On October 25, 2022, AfricaNenda launched State of the Instant and Inclusive Payment Systems (SIIPS) 2022 report, in collaboration with the United Nations Economic Commission for Africa and the World Bank. It is the fruition of extensive consultation with a broad range of industry leaders, experts, and digital financial services (DFS) as well as MSMEs and 1,200 consumers in seven countries on the continent. The first take from the report is that Instant Payment systems (IPS) are on a rapid ascent in Africa: 29 systems have gone live on the continent over the past decade, two new systems on average emerge every year, 21 others are underway. And usage of IPS is growing commensurately. In 2021, the 29 active systems on the continent processed nearly USD 1 trillion and 16 billion in transaction values and volumes, respectively.”

“Ghana’s introduction of a a 1.5% tax on mobile money transactions in May 2022 has been watched closely by policymakers across Africa. The proponents of the electronic transaction levy (e-levy) argue that taxes on mobile money — commonly referred to in Ghana as MoMo — present an opportunity for cash-strapped governments to raise funds in the complex post-pandemic context. In Ghana, the “e-levy” has been linked to the current administration’s “Ghana Beyond Aid” strategy for reducing aid dependence. Taxes on MoMo, in Ghana and elsewhere, have also been justified as a way to “capture” those working in the informal economy, who are perceived as being untaxed. Critics have pointed out, however, that informal workers (who make up 89% of total employment in Ghana) already pay a range of fees and taxes. Therefore they may be disproportionately affected by this new tax.”

“Nedbank, the South African financial services group, recently secured a “village” in the Ubuntuland metaverse which reportedly measures 12 by 12. By securing the village, which will be used to showcase African creativity, Nedbank is said to have become one of the first financial institutions on the African continent to embrace the metaverse. According to a Bloomberg report , the financial services group has partnered with Africarare, the creators of Ubuntuland. Remarking on Nedbank’s entry into the metaverse, Khensani Nobanda, the financial giant’s marketing and corporate affairs executive, said that her organization chose to secure space in the virtual world because it wants to create experiences for its clients that “go beyond banking.””

“Prophius has announced the rollout of its PayContactless solution, enabling small businesses to accept contactless payments through their NFC-enabled Android phones. The move is expected to boost digital payments acceptance for small and micro enterprises (SMEs) in Nigeria, Ghana, Kenya, Uganda and other key markets in Sub-Saharan Africa, while supporting consumers’ preference for safe and seamless digital payments. PayContactless leverages Mastercard Tap on Phone, a simple and cost-effective digital payment technology developed for micro and small businesses and traders, who tend to operate in a cash economy due to the costs and complexity of obtaining traditional PoS devices.”

“Brazilian fintech company Ebanx S.A. on Tuesday said it has expanded into Africa, where it hopes to replicate its fast growth in Latin America by placing a greater emphasis on the digital payments side of its business. The company started operations in Kenya, South Africa and Nigeria in late August amid soaring demand for payments via mobile phones in recent years.”

“At a time of growing interest in social commerce in Africa, Instagram has started working with African startups focused on helping vendors sell more through DMs, by letting those startups connect to its messaging APIs. One of the first startups to do this integration is Bumpa, a Nigerian Shopify-like website that allows its users to create an online store, plus other functionalities like recording sales and tracking payments. Vendors who have the Bumpa app can receive Instagram direct messages from potential customers, without needing to have Instagram installed on their phones (though they must have an account).”

“Safaricom has unveiled a zero-interest credit service that will allow millions of its customers to shop for goods up to Sh100,000 and pay later in a move that is set to disrupt the mobile loans market. Users of the interest-free product to be known as Faraja will buy goods and services from as low as Sh20 to a maximum of Sh100,000 and pay the same amount without any extra fees witnessed on other credit products.   However, only the normal M-pesa transaction charges will apply at the point of sale on the product to be bankrolled by Equity Bank.”

“The South African Reserve Bank is working on a new Rapid Payments Programme (RPP) which is set to significantly shake up payments in South Africa. The programme, which is mentioned in the central bank’s 2022 annual report, forms part of the SARB’s ‘vision 2025’ plan as an industry-led payments modernisation initiative. The SARB noted that BankServAfrica is working with several bank participants to build the technology solution that forms the backbone of the RPP solution. It is currently in the testing phase with its implementation planned for the second half of 2022.”