Kenya and South Africa are transitioning to cashless economies, predicted to eliminate cash machines within 28 and 32 years respectively. Kenya’s leadership in digital payments is driven by mobile penetration and a growing banked population. South Africa’s progress is supported by government policies promoting digital payment adoption, despite challenges such as financial exclusion.
Kenya and South Africa are emerging leaders in the movement towards cashless economies, driven by the increasing adoption of digital payment systems, mobile money, and contactless transactions. A study by Merchant Machine indicates that Norway may achieve a fully cashless status in 11 years, while Kenya and South Africa are projected to run out of cash machines in 28 and 32 years respectively.
Kenya has established itself as a pioneer in digital payments in Africa, attributed largely to the success of M-Pesa, which transformed mobile money since its inception in 2007. The high prevalence of mobile phones and a growing banked population are significant contributors to this trend. These factors are driving Kenya steadily closer to a cashless economy.
South Africa is also making strides toward a reduced reliance on cash, bolstered by governmental initiatives that encourage electronic payment solutions. Despite an extensive unbanked demographic, research reveals that approximately 95% of South Africans have engaged in at least one digital payment.
Nonetheless, the path to a fully cashless system is not without challenges. Issues such as financial exclusion and potential service interruptions present substantial hurdles that need to be addressed as both countries navigate their transition to digital economies.
In summary, both Kenya and South Africa are poised to become cashless societies within the next few decades, propelled by the rise of digital payment platforms and mobile money. While Kenya leads the charge, aided by its mobile infrastructure and banking growth, South Africa follows suit with governmental support. However, challenges such as financial exclusion and service reliability must be resolved to realize the full potential of these cashless innovations.
Original Source: africa.businessinsider.com
