African mobile payments for gambling: current state and perspectives
Africa is a coveted region for many gambling products, despite its regulatory complexities and significant differences in payment habits compared to Europe or the CIS. Understanding the behavior of African players will play a crucial role in success of your product, with payment systems being a top priority. It is well known that popular payment methods in a region are shaped by lifestyle and economic factors. For instance, distrust in the banking system in Latin America has led to the proliferation of cash payment systems, while the advanced financial structure in the UK has made it a pioneer in many technologies.
For a long time, Africa was overlooked by foreign businesspeople, but the situation has recently changed. International cooperation on the African continent and a focus on developing gambling have attracted a large number of operators to the region, including major players who have been successful in the CIS and EU. The fertile ground of a large population and a relatively low barrier to entry into the market has even attracted fledgling gambling operators. Today, we will explore how mobile payments became so popular in Africa and delve into the essence of mobile payment methods.
How do mobile payments actually work?
The convenience and simplicity of service justify prevalence of mobile payments in Africa. While using mobile payments, it is not necessary to have a bank account, and therefore to undergo a compliance and verification process. Opening an account with a mobile operator and registering for the service is pretty easy.
The functionality of mobile payments is quite wide and allows you to cover any demand: from payment for electricity to payments for education and various services. Thanks to this, access to the financial system is simplified for regional residents with any income.
The essence of mobile payments lies in making payments through a mobile operator. This approach achieves the unification of all processes and provides a convenient "all-in-one" solution. It's no longer new when tech companies create a multitude of other services under their umbrella, including payment systems and even banks. Prominent examples in Russia include Ozon and Yandex, while globally, there are even more such companies: Apple, Amazon, WeChat, Alibaba, and many others. All these companies initially set different goals for themselves and later supported their achievements with payment solutions. By closing the loop within their ecosystem, companies can significantly save costs and simplify the user flow.
As is known, users of gaming platforms do not seek complicated paths, and the main task of the operator is to build a unified flow and provide the ability to pay for services with just a few clicks. This becomes especially important for a region like Africa. In this article, we will explore the mobile payment methods available in the region and how they function.
Which mobile payment methods are most common in Africa?
The most popular payment method in this region is M-PESA. M-PESA (Mobile Money in Swahili) is the mobile payment system, most used in Kenya, but is also in other African countries. The payment service was developed by Safaricom, the largest mobile operator in Kenya, and launched in 2007. You can use a cell phone to make online payments for goods and services, make transfers to other users, and other payments while using M-PESA.
M-PESA's online payment options include payment through websites and apps as it is integrated with many online platforms like Jumia, Uber, and others. Thus, it is possible to pay for purchases and services directly through websites and apps. Paying p2p through the M-PESA account is another option. Users can transfer money from their account to the merchant or service provider. This can be done using a code or the recipient's phone number. In addition, M-PESA supports QR codes too.
Code scanning is the basis for many payment systems and methods around the world. Bank transfers, payments from wallets and prepaid cards, mobile balances are all implemented using QR codes in many variations. Although code scanning is not a new technology, it is still actively used by lots of residents.
Other popular mobile payment systems in the region are Airtel Money, MTN Mobile Money, Tigo Pesa, and Orange Money.
Airtel Money is a mobile commerce service provided by Airtel Africa. It allows users to deposit, withdraw, transfer money, pay for goods and services. Users can have access to Airtel Money even if they do not have a smartphone or internet connection. For this, they need to register for the service at any Airtel Money office.
MTN Mobile Money is provided by MTN, one of the leading telecommunications companies in Africa. Mobile commerce allows users to store, send and receive money using their cell phones. Users can also pay bills, school fees and other services. Users have to register at an MTN service center or with an authorized agent to use the service. Once registered, they have access by dialing a USSD code or through the MTN Mobile Money app if they have a smartphone. Similar to Airtel Money, you do not need to have a phone with you to use the mobile payment service. African audience really appreciated this detail and it helped mobile payments gain credibility and popularity among users.
Tigo Pesa and Orange Money provide essentially similar services, on behalf of other telecom operators. MTN Mobile Money is one of the most extensive operators in terms of coverage and provides services in 21 countries including Ghana, Uganda, Rwanda, Benin, Cameroon, the Republic of Congo, Cote d'Ivoire, Liberia, Swaziland, South Sudan, Sudan, Yemen, Afghanistan, Iran, Cyprus, Guinea, Guinea-Bissau, Liberia, Sierra Leone, South Africa and Zambia.
Payment systems for gambling in Africa
Like any business that operates globally, gambling needs to meet the requirements and payment habits of users in each country. Then only it will be able to successfully operate and generate revenue, as well as retain local players. The African region is not the exception, but rather the opposite. Without a proper study of the financial system, it will be extremely difficult to work here.
The main payment methods that should be considered for connection will be mobile commerce and card payments. In this case, the search for providers is not an easy task, due to the presence of a large number of providers in the gray zone. Therefore, checking counterparties before starting cooperation and quality research comes to the forefront. With Monoup payment system research you can forget about uncertainty and answer all your questions at once. Getting our analytics will be the best way to start business operations and not to miss any detail on the way.
