How technology is driving Africa's digital payments

The digital landscape in Africa has been rapidly evolving, especially in the realm of digital payments. Kari Tukur, the Vice President and Head of Products for East and West Africa at Mastercard, recently spoke with CNBC Africa's Kenneth Igbomo about how technology has been instrumental in driving the digital inclusion of small merchants in Africa. Tukur emphasized the importance of adopting emerging technologies in Africa to further propel the growth of digital payments. The transformation and evolution of cards have played a significant role in this digital revolution. Tukur highlighted how technology has revolutionized the traditional payment card form factor, moving from physical plastic to digital cards. This shift has been made possible through smartphone technology, enabling seamless and secure digital payments. Tukur pointed out that biometric authentication has been a key driver in enhancing security, with features like facial recognition and fingerprint authentication offering heightened levels of protection. Additionally, technologies such as RFID and near field communication (NFC) have enhanced the contactless payment experience, allowing small merchants to leverage their mobile phones as payment devices. This technological advancement has facilitated the integration of small merchants into the digital payment ecosystem, bridging the gap for greater financial inclusion. Tukur underscored the significance of digital wallets, which can now be embedded in smartphones, enabling users to simply tap their phone on a merchant's device for a seamless value transfer. The proliferation of emerging technologies has sparked innovation within the payments industry, with a focus on enhancing customer experiences, security, and the economic viability of digital solutions. As Africa prepares for the Africa Continental Free Trade Agreement and prioritizes cross-border payments, Tukur highlighted the pivotal role of technology in driving seamless payment solutions. Mastercard's extensive global network and sophisticated technology infrastructure position the company as a key player in facilitating cross-border payment platforms like PAPS. Tukur emphasized Mastercard's commitment to providing value-added services, such as cyber resilience and security capabilities, consultancy services, and product functionalities, to support the seamless transfer of funds across different markets. The company's versatile product offerings and collaborative approach with governments in Africa aim to bolster the implementation of the Africa Continental Free Trade Agreement and foster a thriving digital payment ecosystem. In a discussion about acceptance strategies in digital payments, Tukur elaborated on the importance of empowering merchants with the right tools to receive and process digital payments. Tokenizing transactions and leveraging technologies like the Mastercard Digital Enablement Service enable secure face-to-face transactions and enhance the overall security of digital payments. Tukur stressed the need to equip merchants with acceptance solutions such as QR codes, payment links, and mobile phone terminal conversion capabilities to enable seamless contactless transactions. By providing merchants with these acceptance tools, Tukur believes that the scalability of digital payment solutions can be accelerated, driving further digital inclusion and financial empowerment across Africa.