PayU introduces A2A payments in Nigeria
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This investment reflects PayU GPO's broader strategy to drive financial inclusion and modernise the continent's payment infrastructure, while responding to rapidly shifting consumer preferences.
The expansion comes at a time when alternative payment methods are on the rise across the region. Insights from Black Friday 2024 show a steady decline in traditional card usage, with card transactions dropping from 93% in 2022 to 84% in 2024 in South Africa. Meanwhile, Open Banking methods are rapidly gaining traction - CapitecPay transactions alone grew by 104% year-on-year. Mobile-first purchasing also continues to soar, with 67% of Black Friday transactions taking place on smartphones.
'Our focus on A2A payments and mobile-first methods is critical to our strategy in Africa,' said Imraan Appleby, Africa Head of Product at PayU GPO. Customers are clearly signalling a demand for faster, simpler ways to pay. Merchants, in turn, need solutions that meet customers where they are.'
PayU GPO's A2A payment solution allows consumers in Nigeria to pay merchants directly from their bank accounts without the need for a card. The benefits include:
• Lower transaction costs for merchants
• Real-time settlement of transactions
• A seamless, frictionless user experience
• Greater accessibility and choice for consumers
These advantages extend across the value chain, with merchants' customers also benefiting from improved security, speed, and control over their payments.
This drive for growth mirrors Africa's continued industry collaboration which is enacting positive change across the continent. In South Africa the Reserve Bank is revising the National Payment System Act to foster inclusion. In the first time since its history, it has created a Payment Ecosystem Modernisation Programme (PEM), hosting collaborative sessions with banks and non-banks to drive the changes that the act puts forward.
PEM has numerous workstreams all aimed at driving competition, innovation, financial inclusion and addressing fraud and risk in an open, interoperable system. QR standardisation, DFID (Digital Financial Identity) and Payshap are amongst the programmes being driven forward by industry collaboration under the PEM.
To lead PayU GPO's growing footprint in South Africa, the company has appointed Ryan Engel as the new Country Manager. With a background in payments and digital transformation, Ryan will be responsible for driving local strategy, forging partnerships, and strengthening PayU GPO's regional presence.
'I'm excited to be joining PayU GPO at such a transformative moment for payments in South Africa and across the continent,' said Ryan Engel, Country Manager, South Africa. 'Consumers and merchants alike are seeking innovative, efficient ways to transact. PayU GPO is perfectly positioned to deliver on that demand, and I look forward to helping shape the future of digital payments in the region.'
As a further display of commitment to the region, PayU GPO received PCI DSS v4.0.1 Attestation of Compliance (AoC) for both South Africa and Nigeria. This certification requires implementing comprehensive security controls specifically tailored to regional requirements, and showcases PayU GPO's dedication to being a reliable, secure and enduring participant in Africa's financial ecosystem.
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