Standard Bank Group has announced it is rolling out contactless payment
cards across 15 African countries. It is currently enabling contactless
payment capability in, among other, Botswana, Ghana, Kenya, Zambia,
Malawi, eSwatini, Tanzania, Uganda, Namibia,
Lesotho, Mozambique and Zimbabwe.
“The pandemic has created heightened concern among consumers on cash
usage with many increasingly recognising contactless as a safer,
cleaner, and faster way to pay, especially as they seek out ways to
quickly get in and out of stores without touching terminals
or handing over their card,” says Israel Skosana, head of pan-Africa
card issuing at Standard Bank.
“The introduction of this payment method will improve customer
convenience, with shorter transaction times and eliminates the need to
withdraw or handle cash. Security is also enhanced as a customer keeps
their card with them rather than handing it to someone
else.”
Cash still accounts for most payments in many of the African countries.
Yet, as well as being inefficient to process and expensive to manage,
cash is inherently insecure, and its use fuels a shadow economy. The
displacement of cash is therefore a strategic
objective for many governments, banks, payment providers and,
increasingly, merchants. Contactless represents a viable cash
displacement tool.
In many countries around the world, the use of contactless payments has
quickly become deeply embedded into everyday payment habits. The
perceptions around convenience and safety have spurred the preference
for contactless cards.
“It is critical for us to ensure that our customers can access the most
convenient payment options to suit their lifestyle as they continue to
navigate the current challenges brought about by Covid-19,”
says Skosana.
The roll-out includes upgrading merchant terminals to accept contactless payments. This comes in response to increasing demand from consumers and merchants alike.
Prior to the pandemic, contactless payments were already emerging and
growing across African. However, Covid-19 has encouraged consumers to
further embrace the technology.
“As many countries in Africa imposed necessary restrictions on social
distancing, the act of running to the store to buy everyday supplies
changed dramatically. This shift in consumer behaviour is particularly
clear at till checkout points, with customers and
merchants expressing a desire cleanliness and safety at the point of
sale.”
The benefits of contactless technology extend well beyond health and
safety. The use of contactless opens the door to payments in many other
forms such as smartphones and wearables. The same underlying technology
is used to process transactions, and the potential
for mobile and wearable-enabled payments is significant.
