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Written by: iPay
Africa is witnessing a surge in digital payments adoption, reflecting consumer demands for convenience, accessibility and more payment choices when it comes to sending and receiving payments.
Posted on May 16, 2024
Why Your Business Needs to Start Accepting Digital Payments Today
By: iPay
Africa is witnessing a surge in digital payments adoption, reflecting consumer demands for convenience, accessibility and more payment choices when it comes to sending and receiving payments.
By the year 2028, experts believe that digital payments in Africa will grow at an annual rate of 12.65%, reaching a total value of about US$314.80 billion. This will help facilitate various ways for businesses to receive payments and help drive overall business growth.
What’s happening now?
Amidst this rapid transformation comes the ever-present threat: fraud and security breaches. Cybercriminals are always finding new ways with targeted sophisticated fraud schemes, impacting specific institutions, technology and processes of businesses and consumers alike.
Regulatory bodies across Africa, including the Central bank of Kenya are taking up proactive steps to enhance payments security through innovative technologies. This helps prevent fraudulent transactions while enhancing customer experience.
Steps Taken to Make Payments Safer
Making payments safer involves several important steps. One crucial aspect is getting certifications, licensing and strict adherence to data protection regulations. From achieving PCI DSS Level 1 certification to aligning with data protection acts such as Kenya's Data Protection Act of 2019. Also, meeting the standards set by big credit card companies like Visa and Mastercard helps businesses defend against cyber threats.
Financial institutions are mandated to conduct regular audits of their payment systems, identify weak points and fix them. These may include investing in adapting specific security measures for different markets, educating employees about best practices for safeguarding sensitive information, encryption technology and tokenization. They also make sure that only the right people can access important information by using things like multi-factor authentication.
Owen Otwoma, our Assistant Project Manager, talks about how crucial these steps are, “Maintaining service delivery standards such as TATs and SLAs and sticking by them is an added advantage in showing integrity”. He also points out why it is better to use 3D enabled cards instead of 2D ones, “it adds an extra security step, with a code sent to your phone for online purchases. 2D cards skip this step. Meaning they are friction-less.” Owen explains.
By following these strict standards and using strong security measures, we make the payment system safer for everyone involved.
Industries where there is a big Risk of Payment Fraud
Every business that conducts transactions online should focus on keeping payments secure. However, industries that handle sensitive customer data, such as e-commerce, IT, financial services, Government entities, healthcare and retail, face higher risks. These businesses are prime targets for cybercriminals and must implement robust security measures to protect both their assets and their customers' information.
Conclusion
Africa’s digital payments market has entered a new era of new opportunities for growth. Meeting regulatory requirements is no longer enough. Financial institutions need to go above and beyond to ensure the integrity and security of every transaction.
Despite the ongoing security challenges and shifts in consumer behaviour, there's a silver lining. Governments and regulators are paving the way for the acceleration of safe, secure and simple digital payments. This sets the stage for innovation and growth.
For businesses looking to venture into digital payments, getting started may seem daunting. However, partnering with a trusted payments service provider can ease this process. As the digital payments landscape evolves, we can expect to see a new generation of businesses emerge and scale.
Get to see how our trusted solutions align with regulatory standards. Partner with us for secure and seamless digital payments.
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