DATA FROM SOUTH AFRICA SHOWS THAT ONLINE COMMERCE GREW BY AROUND 40 % DURING LOCKDOWNS IN 2020 AND 2021 .
INDUSTRY WATCH experience with international payments . Therefore , it is essential to offer similar solutions that will increase interoperability .
This can be achieved by :
• Linking domestic real-time payment systems
• Aligning operating hours of RTGS systems
• Allowing instant payment schemes to become the channel for incoming international payments
• Increased traceability of transactions and transparency of fees .
Arthi Narayanan , Lead Payments
Consultant , Synthesis in Africa . The adoption of Money Transfer Operators and Mobile Network Operators have significantly increased . Digital wallets connected to diverse payment methods such as cards , accounts , and mobile money are experiencing increased availability and adoption .
Distributed Ledger Technology with block chain is challenging the traditional operating model of crossborder payments and has proved to be faster , more efficient , cheaper , transparent , and secure .
Consumers and businesses have seen the benefits of domestic realtime payments offering 24x7 year-round availability . It is no wonder they are expecting the same
DATA FROM SOUTH AFRICA SHOWS THAT ONLINE COMMERCE GREW BY AROUND 40 % DURING LOCKDOWNS IN 2020 AND 2021 .
The implementation of the Transactions Cleared on an Immediate Basis , scheme is gaining popularity in the Southern African Development Community , SADC region with participation from both banks and non-banks . Successful adoption of this scheme in all countries will result in low cost and faster remittances to end-users .
Further , there are potential integration points into other African regions including the East African Community , the Common Market for Eastern and Southern Africa , and East African Community .
To alleviate payment challenges within Africa ’ s intricate network of over 50 countries and around 40 different currencies , The Pan-African Payment and Settlement System , PAPSS was developed by the African Continental Free Trade Area . This represents a potentially transformative advancement for crossborder payments .
Developments such as this will leverage the unique competitive strengths of banks , financial institutions , MNOs , MTOs , and FinTech to build effective payment infrastructure and ecosystems through partnerships and collaborations .
Tokenisation Technology is another trend that can streamline financial processes and foster financial inclusion . Africa ’ s first Central Bank Digital Currency was issued by the Central Bank of Nigeria and South Africa and Ghana are currently running pilot projects .
Finally , effective adoption of ISO20022 messaging standards can result in improved payment exceptions and investigations , simplify regulatory reporting , enhance customer insights , build vertical value propositions , and strengthen corporate treasury activities .
These are just a few of the opportunities and trends available to improve cross-border commerce . p
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