Hundreds of Free Fully Accredited Data science learnerships up for grabs

Registrations open today for EXPLORE Data Science Academy’s (EDSA) 2021 intake of its 12-month fully-sponsored data science learnerships, starting January 11, 2021. For hundreds of successful...

Latest Posts

What To Expect From A Criminal Defense Lawyer?

If you feel like you or someone you know is stuck or trapped in a criminal case, it’s a good idea to hire a...

Chinese Smartphone Manufacturer Oppo Sets Up Shop in South Africa

Chinese smartphone manufacturer Oppo is investing in South Africa with local head office and a commitment to making world-leading innovations more accessible. Oppo is the...

SA’s Digital Heritage: Keeping Us Globally Relevant

South Africa’s heritage is not just physical. It is intimately part of the digital world. Digital connectively can enhance the value of that heritage,...

How is Huawei Powering Digital Inclusion with Technology in Africa?

Huawei believes that no one should be left behind in the digital world, so the Chinese telecoms giant developed TECH4ALL. TECH4ALL is a long-term, digital...

Studies show mobile payments add to tourism business success in Africa

International travel companies hoping to penetrate the African market must include mobile payments as a strategic initiative, according to recent surveys. By Eran Feinstein 

Africa has been called the world’s mobile-first continent and the fastest-growing travel market in the world. In order to dominate in the African market, mobile payments must take priority in the corporate agenda.

Report: Growth of African tourism

From 26 million international tourists in 2000 to 56 million in 2014, according to The World Tourism Organization, African tourism is growing steadily. It is not only African travel and hospitality companies that are poised to gain. International conglomerates, like Marriott, will profit in Africa, too. The hotel chain added 9 locations throughout Africa in 2015. The company plans to expand from 10 to 17 African countries, and is receiving a $1.5 billion capital investment for the projects.

As African tourism grows, so does international interest from companies poised to benefit. Those planning to penetrate the market must understand its mobile landscape.

Surveys: Growth of African mobile payments

In a recent survey by Statista, the number of mobile payment users in Africa in 2011 was 54.54 million and is expected to nearly double to 101.34 million users in 2016.

Mobile phone users

 

Nowhere in the world is mobile penetration so substantial, and nowhere in the world have mobile payments seen such growth in such a short period of time.

The African continent is a perfect backdrop for mobile payment innovation.

While World Bank’s Lead Economist for Development Research, Leora Klapper, reports that 62% of the world’s population has a bank account, in Africa the reality, according to a McKinsey & Company projection, is that 80% of the continent’s population is not connected to formal financial services.

This is one of the major contributing factors to the penetration and growth of mobile payments in the region. By and large, Africans do not use banks, but still need a way to make payments, book air travel, and secure hotel reservations.

In a separate survey reported in the Financial Times, mobile payments in Africa doubled from approximately $5 billion in 2012 to well over $10 billion just two years later.

Financial Times
With the growth of African travel mirrored by the growth of African mobile payments, combining the two seems like a sure bet

Survey: African travelers want mobile

An independent research study commissioned by Amadeus and run by strategy consultancy, Inquisition, uncovered that Africans are increasingly looking for agents that offer online and mobile services. Key findings from the survey of over 2,500 travelers across Angola, Ghana, Kenya, Ivory Coast, Nigeria, Senegal and South Africa, include:

  • Travelers increasingly take control of their bookings using online tools, with 25% of them booking directly with the service provider, such as the airline or the hotel
  • Travelers want to manage travel themselves, with 25% reporting they go online to use a travel booking website to make reservations and confirm their hotel
  • Travelers are increasingly booking travel arrangements via mobile, with 14% of the African travelers polled using their mobile phones to pay service providers

Report: Kenya as a microcosm

According to the International Reporting Project of Johns Hopkins University, Kenya can be considered a microcosm for the African continent due in part to its high literacy rate, progress as “one of the most promising and prosperous African nations,” and being one of the most popular tourist destinations in the world.

As such, statistics like those presented by the Central Bank of Kenya, which show that 60% of the adult population are using mobile money transfer, highlighted by the success of sites like the hotel booking website Jovago, proves how mobile payments ease people’s lives in the African travel industry.

Using the success of mobile payments within the Kenyan microcosm, we can clearly visualize the future of the travel industry throughout the African continent.

Mobile payments as a competitive edge

These studies and reports point to one absolute: international travel companies – whether they are airlines, hotel chains, or large global travel agencies – must offer mobile payments to the African travel and tourism market. Doing so positions them to gain on their competition and establish a stronghold in a market and a region that is expected to bloom.

Eran Feinstein Eran Feinstein is the founder of 3G Direct Pay Group , a global e-commerce and online payments solutions provider for the travel and related industries. With over 14 years of experience leading technology, sales, marketing and operation teams, Eran is an authority in the East African e-commerce and payments arena. He’s also an avid marathon runner. 

Latest Posts

What To Expect From A Criminal Defense Lawyer?

If you feel like you or someone you know is stuck or trapped in a criminal case, it’s a good idea to hire a...

Chinese Smartphone Manufacturer Oppo Sets Up Shop in South Africa

Chinese smartphone manufacturer Oppo is investing in South Africa with local head office and a commitment to making world-leading innovations more accessible. Oppo is the...

SA’s Digital Heritage: Keeping Us Globally Relevant

South Africa’s heritage is not just physical. It is intimately part of the digital world. Digital connectively can enhance the value of that heritage,...

How is Huawei Powering Digital Inclusion with Technology in Africa?

Huawei believes that no one should be left behind in the digital world, so the Chinese telecoms giant developed TECH4ALL. TECH4ALL is a long-term, digital...

Don't Miss

Enjoy a Revitalizing Weekend Away With The Whole Family at Knorhoek

Wide-open spaces are a great place to decompress after months of lockdown, and Knorhoek ticks all the boxes for the perfect country escape. Situated in...

Getting Smart With Gadget Shopping During An Extended Quarantine

Staying quarantined for a prolonged period is the last thing that anyone would want to do. But there’s hardly a choice for people amid...

Avon Disrupts the Norms to Create Addictive, Rebellious & Fierce “Far Away Rebel & Diva”

Avon breaks all the rules with Far Away Rebel & Diva. The new launch is the next step in the glamorous bold journey of...

Investec Says Union Must Seek Answers For Phantom Shares from Cell C

Investec has told the Information Communication Technology Union (ICTU) to direct its questions about the Believe Phantom Option Share Scheme for Cell C workers to the...

Union Asks If Blue Label Telecoms Is Using Cell C as a ‘Piggy Bank’

The Information Communication Technology Union (ICTU) wants Blue Label Telecoms to explain how the JSE-listed company can zero rate its stake in Cell C...

Stay in touch

To be updated with all the latest news, offers and special announcements.