Revolutionizing Payments in Kenya: Interswitch and Tuma Launch Tumatap
Kenya’s fintech landscape is evolving with the introduction of Tumatap, a groundbreaking contactless payment solution. This innovative system emerges from a strategic partnership between Nigerian fintech giant Interswitch and Kenyan-based Elie Technologies, also known as Tuma.
Tumatap aims to transform the way Micro, Small, and Medium Enterprises (MSMEs) handle transactions. The system’s core strength lies in its ability to convert everyday smartphones into functional point-of-sale (POS) terminals. This breakthrough eliminates the need for additional hardware, making it accessible to a wide range of businesses.
The versatility of Tumatap is remarkable. It’s compatible with both Android and iOS platforms, and even extends its functionality to feature phones. This broad compatibility ensures that businesses of all sizes can leverage this technology without significant infrastructure investments.
Read more here: https://www.techinafrica.com/revolutionizing-payments-in-kenya-interswitch-and-tuma-launch-tumatap/
Digital Payments And The Fintech Eruption: Bolstering African Financial Inclusion
s internet connectivity permeates every corner of Africa, the everyday exchange of money is profoundly changing – increasingly shaped by the continent’s burgeoning fintech sector. This shift, driven by digital innovation in payment processes, is turning what was once an informal network of transactions into a robust, inclusive financial system.
Cashless payments technology is set to leapfrog established banking tools, and with many Africans’ first financial services experiences taking place through their phones, telco-fintech players are likely going to dominate local markets in the coming years – especially in South Africa, Nigeria, Egypt, and Kenya.
According to Boston Consulting Group (BCG) and QED Investors’ Reimagining the Future of Finance report, the African fintech market will be worth around R1.2 trillion by 2030, making it world’s fastest-growing region for fintech revenue. The key African markets identified in the report include two countries, South Africa and Nigeria, whose own economic and fintech strategies are focused clearly on financial inclusion.
Read more here: https://www.africa.com/digital-payments-and-the-fintech-eruption-bolstering-african-financial-inclusion/
Pioneering Merger Reshapes Africa’s Digital Retail Landscape
Africa’s tech sector, Wasoko and MaxAB have joined forces to create the continent’s largest digital platform serving the informal retail market. This merger, completed through an all-stock transaction, marks a pivotal moment in the evolution of B2B e-commerce across Africa.
The newly formed entity boasts an impressive network of over 450,000 informal retailers, connecting them to more than 65 million consumers across Kenya, Tanzania, Rwanda, Egypt, and Morocco. This extensive reach positions the company as a dominant player in Africa’s $600 billion informal retail sector.
Read more here: https://www.techinafrica.com/pioneering-merger-reshapes-africas-digital-retail-landscape/
MTN MoMo resorts to foot soldiers in South African fintech push
MTN’s Mobile Money (MoMo) platform is stepping up efforts to further penetrate South African fintech, going from a digital-first approach to a more grassroots gameplan. To boost adoption from the country’s unbanked and underserved populations, the operator is enlisting agents—often called “foot soldiers”—to take its push directly to the mass.
South African fintech is competitive and complex, largely due to its well-developed banking sector. This presents challenges for mobile money uptake. Despite having over 11 million registered users, MoMo struggles to get the widespread, consistent usage seen in other African markets like Ghana and Uganda, where it has 15.2 million and 12.1 million users respectively.
Read more here: https://www.benjamindada.com/mtn-momo-resorts-to-foot-soldiers-in-south-african-fintech-push/
Mastercard and Visa to face multi-billion pound lawsuit over interchange fees on UK businesses
The claim, claim endorsed by leading trade bodies including UK Hospitality and the Association of British Travel Agents, alleges that businesses that received payments by commercial cards paid fees much higher than they should have been, causing them significant losses.
The Tribunal dismissed Mastercard’s and Visa’s objection to the claims being certified, ruling that the cases can proceed as collective actions. Lawyers representing the plaintiffs are encouraging businesses to register their interest now to claim their share of any damages awarded.
Responding to the Tribunal’s judgment, Jeremy Robinson, a partner at legal firm Harcus Parker Limited, says: “We are fighting to ensure businesses and organisations across the UK economy are properly compensated by Mastercard and Visa for their unlawful multilateral interchange fees.
Read more here: https://www.finextra.com/newsarticle/44673/mastercard-and-visa-to-face-multi-billion-pound-lawsuit-over-interchange-fees-on-uk-businesses
How GCash is Evolving to be a Global Fintech Powerhouse
In 2024, GCash, arguably the most successful fintech company in the Philippines, continued its impressive growth trajectory following a strong financial performance in 2023.
The company secured additional funding, formed numerous partnerships and expanded its reach overseas. It is now preparing for a landmark public listing.
These developments mark a period of substantial growth and transformation for GCash as the firm further enhance its market position both domestically and internationally.
Read more here: https://fintechnews.ph/64123/fintechphilippines/gcash-ipo-digital-banking/
Visa to launch new model for A2A payments in the UK
Visa is promising to launch a smart upgrade to the current pay-by-bank model with the launch in the UK of Visa A2A, a rules-based system for bill payments and subscription management in early 2025.
In 2023, £3.7tn was paid via A2A Faster Payments in the UK, a 15% increase over the previous year. However, the payment of bills and subscriptions through bank transfers remains largely unchanged since the inception of direct debit 60 years ago.
Visa says that under the current model billions of pounds are lost or withheld from consumers due to problems such as unauthorised auto-renewals or the lack of flexibility around bill payments.
Read more here: https://www.finextra.com/newsarticle/44679/visa-to-launch-new-model-for-a2a-payments-in-the-uk
The double-edged sword: how the fintech companies are leveraging the digital payments and e-commerce proliferation
The financial landscape has experienced a significant transformation over the past decade, driven by the rapid proliferation of e-commerce, virtual payment technologies, and the rise of fintech and techfin companies. These innovations have redefined how Ghanaians conduct transactions, manage their finances, and engage with the economy.
While these advancements have brought convenience and financial inclusion, they have also exposed traditional banks, financial institutions, and customers to new challenges and exploitative practices. This feature explores how fintech and techfin companies are leveraging these changes to their advantage and the broader implications for inflation, market operations, and economic growth in Ghana.
