On October 29, Mastercard hosted its first African Debit Forum, as part of its Connecting Tomorrow 2018 Forum in Barcelona with talks centered at how technology can be used to better service delivery to customers in the banking sector.
Over the one-day event, executives from leading financial institutions discussed the need to harness new technologies such as mobile and add targeted loyalty offerings to appeal to the emerging digital natives in Africa.
In its journey to build a stronger payment ecosystem across Africa, Mastercard through the forum explored topics that included the strategic role that current accounts and debit cards play in shaping consumer relationships, trends and insights into how African retail banking is evolving, as well as how digital and mobile channels are changing the habits of consumers and what this means for the banking industry.
According to Raghav Prasad, Division President for Sub-Saharan Africa, Mastercard remains fully committed to delivering solutions that build inclusive ecosystems and consequently drive a cashless society.
“The most effective way to ensure the continued evolution of products and services is by forging strong partnerships,” he said.
With an estimated 95 percent of retail transactions still being made in cash in Africa, there remains a great opportunity to drive financial inclusion within the region through innovative technologies, as well as driving debit card adoption and usage.
Africa’s banking industry is the second fastest growing of any global region, with a revenue pool expected to grow further at CAGR 8.7 percent until 2022. Banking penetration, however, is low with only 300 million banked adults in 2017 (35 percent), although it is expected to grow to 460 million by 2022 (48 percent).
“By continuing to partner with market leaders to roll-out relevant debit card solutions and drive consumer education to start using cards for payments at the point of sale, we will enable people to move beyond cash,” Prasad concluded.