The payments landscape in Africa is rapidly evolving, driven by a combination of technological innovation, government initiatives, and economic growth. As the continent continues to develop and modernize, we can expect to see continued growth and innovation in the payments industry, including cross-border payments.
But what does this all mean for NGOs?
Cross-border payments are a critical aspect of global economic activity, enabling businesses, individuals, and organizations to send and receive money across international borders. From a non-governmental organizations (NGOs) perspective, they are especially crucial, given that these organizations often operate in developing countries where access to financial services is limited, and traditional payment methods may not be viable.
The Challenge of Cross-Border Payments in Africa
Africa is a continent of immense potential, with a population of over 1.3 billion people, a young and growing workforce, and abundant natural resources. However, the continent also faces significant challenges, including poverty, inequality, and limited access to financial services. According to the World Bank, only 43% of adults in sub-Saharan Africa have a bank account, compared to a global average of 69%. This lack of financial inclusion makes it challenging for NGOs to operate in the region, as the ability to make last mile payment is an essential part of their operational requirements.
NGOs working in Africa face several challenges related to cross-border payments, including high transaction costs, limited access to local currencies and complex regulatory requirements.
Embracing technology for cross-border payments
In recent years, financial technology (fintech) has emerged as a potential solution to the challenges with traditional payment methods such as wire transfer and checks, which can be often slow, costly, and be subject to fraud and other security risks. Fintech refers to the use of digital technology to deliver financial services and products, and it has the potential to improve the speed, security, and cost-effectiveness of cross-border payments for NGOs.
By embracing fintech, NGOs can streamline their payment processes, reduce transaction costs, and increase financial transparency. Moreover, fintech solutions can provide greater flexibility and control over funds, enabling NGOs to manage their financial resources more efficiently and effectively.
At IPT Africa, we believe payments to be the engine that will drive growth in emerging markets, creating economic opportunities, and supporting local economies. A single interface gives you real-time transparent pricing across an unbeatable range of emerging markets (+100), while our technology ensures payments credit with the full amount and zero fees are charged for sending them. We reduce the stress of operating in emerging markets and provide a range of security and monitoring solutions to ensure your payments remain fully compliant at all times.
If you’d like a demo, talk to us.