Skip to content

Grocers and Department Stores are Driving the Uptake of Digital Payments in East Africa

Buyers are preferring to pay online instead of using physical debit or credit cards, according to payments provider Pesapal Ltd. The typical e-commerce basket is about $36, while a basket settled using a point-of-sale terminal averages 5,117 shillings, according to Agosta Liko, founder and group chief executive officer of Nairobi-based Pesapal. The company forecasts East African e-commerce basket values will increase by as much as 18% in the next two years. “It will be driven by growing acceptance among customers and by retailers diversifying to digital products,” Liko said in response to emailed questions. East Africa’s payments market, primarily in Kenya and Uganda, is seen growing at 20% annually until 2025, according to a report by McKinsey & Co. published in September. West Africa, including Nigeria, Ghana and Ivory Coast, is the fastest-growing sub-region at 35%. On the continent, the industry is forecast to reach $40 billion by 2025, from $16 billion in 2020, according to the management consulting giant.