Perspectives and development of gambling and fintech in Africa
Africa has become a revelation for many businesses, transforming from an overlooked and seemingly unpromising region into the top target. For many years, business followed well-trodden paths and automatically chose regions for operation, among which European Union seemed the most profitable and wealthy. This was the case for gambling as well, which is known to chase big players and high LTV (Lifetime Value). Affluent Europeans always appeared to be an excellent customer base, but European regulations and bureaucracy are increasingly complicating business operations, especially in iGaming sector.
Stricter gambling licensing and more stringent AML (Anti-Money Laundering) laws, has forced businesses to consider alternatives. Africa has become one of these unexpected alternatives, which is now being viewed with fresh eyes. This densely populated region has been developing for a long time, including technological improvements, although many were unaware of this. Payment methods such as credit cards and mobile payments allow the population to access online payments, and we can see a real demand for services in the region. Global iGaming brands have recently started entering Nigeria, Kenya, and South Africa as the main countries on the continent. Payment systems have supported this trend and are also expanding their presence. This can be brightly seen with two established fintech brands, PayRetailers and Unlimint. Of course, they are not the only ones offering local payment methods, but considering that these providers have been in the market for a long time and conduct serious business in many regions, their entry into new markets was not an experiment. Rather, it was a calculated step to strengthen positions and not to miss the trend and merchants.
What do PayRetailers say? The large Latin American provider has opened operations in the following countries: Burkina Faso, Cameroon, Kenya, Côte d'Ivoire, Ghana, Senegal, South Africa, Nigeria, Rwanda, Tanzania, Uganda, and Zambia. This is an impressive list with even more plans for a stable merchant inflow. Earlier, Unlimint did the same, offering to cover payments across the entire continent.
The growing interest in Africa is understandable and predictable, but at the same time, we understand that arrival of large businesses from such industries will change environment and regulation. Whether the pioneers will secure the most advantageous positions — can’t say exactly, but the race has undoubtedly begun.
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