• Home
  • Top Stories
  • News
    • General
    • Mobile and Telecoms
    • Enterprise IT
      • Artificial Intelligence
      • Cloud Computing
      • Digital Transformation
      • Internet of Things
      • Security
      • Storage
    • Industries
      • Education
      • Finance
      • Healthcare
      • Mining & Energy
      • Retail
    • Gadgets and Gaming
    • Lists
    • Sponsored Articles
    • Startups
    • Online & Social
    • Events News
  • Africa By Region
    • East Africa
    • North Africa
    • Southern Africa
    • West Africa
  • Services
    • IT Customer Acquisition
    • Tailored Webinars
    • Sponsored Content
  • Partners
    • PR Newswire
    • Media Outreach
    • APO
    • Business Wire
  • Training
  • Events
  • Advertise
Sign in
Welcome!Log into your account
Forgot your password?
Password recovery
Recover your password
Search
Monday, May 16, 2022
  • Press Offices
    • Africa Data Centres
    • Arbor Networks
    • AVEVA
    • ESET
    • Huawei
    • ITR Technology
    • Lexis Nexis
    • Netshield
    • Exclusive Networks
    • Nuovopay
    • Parallel Wireless
    • Scalefusion
    • Sobek IT
    • StorEX
    • SqwidNet
    • Synology
    • Tecno
    • T-Systems
    • Umlaut
    • Veeam
  • Gallery
  • Newsletter
  • Contact
Sign in
Welcome! Log into your account
Forgot your password? Get help
Password recovery
Recover your password
A password will be e-mailed to you.
ITNewsAfrica.com IT News Africa – Up to date technology news, IT news, Digital news, Telecom news, Mobile news, Gadgets news, Analysis and Reports
ITNewsAfrica.com ITNewsAfrica.com
  • Home
  • Top Stories
    • South Africa’s Ukheshe Technologies Joins Forces with AWS

      New Warnings Show How Hackers in Nigeria Can Remotely Steal Cars

      Huawei MateBook D14 Launches in SA: Where to Get it, Price…

      Is Live-Streaming Coming to Netflix?

      Xiaomi Redmi 10 Launches in Kenya – Price, Specs & More

  • News
    • General
    • Mobile and Telecoms
    • Enterprise IT
      • Artificial Intelligence
      • Cloud Computing
      • Digital Transformation
      • Internet of Things
      • Security
      • Storage
    • Industries
      • Education
      • Finance
      • Healthcare
      • Mining & Energy
      • Retail
    • Gadgets and Gaming
    • Lists
    • Sponsored Articles
    • Startups
    • Online & Social
    • Events News
  • Africa By Region
    • East Africa
    • North Africa
    • Southern Africa
    • West Africa
  • Services
    • IT Customer Acquisition
    • Tailored Webinars
    • Sponsored Content
  • Partners
    • PR Newswire
    • Media Outreach
    • APO
    • Business Wire
  • Training
  • Events
  • Advertise
Home Industries Finance Account-to-Account set to transform payments landscape

Account-to-Account set to transform payments landscape

By
Staff Writer
-
January 25, 2022
Facebook
Twitter
WhatsApp
Linkedin
Email
    Andre Hugo, CEO of Spot Money.

    In South Africa, account-to-account (A2A) payments are starting to bring about a revolution when it comes to the concept of how payments are managed. However, this method of moving money directly from one account to another is something most consumers will not even be aware of. Instead, it is at the merchant level where the most significant changes will take place.

    Like so many things, the pandemic has driven demand for more efficient ways of managing customer payments. Before long, A2A is expected to become the preferred way of taking care of transactions whether it be for online shopping, in-store purchases, or even business-to-business dealings.

    A2A can be triggered in two ways. Firstly, by card. This sees a payment transaction processor like Mastercard routing an A2A payment via the usual channels. However, the traditional card fees will be suppressed and replaced by a nominal A2A fee. The second way is through a digital wallet or linked account such as that provided through the Spot Money application.

    Of course, A2A is not a new concept. International research has shown that card-not-present (CNP) transactions made up 27% of all debit payments by the end of 2019. Given developments of the past two years, this will be significantly higher come end of 2021. A2A, which include the likes of mobile wallets and consumers using peer-to-peer (P2P) solutions like tapping apps to pay were considered the leading use cases for growth in debit payment volume. Another survey has found that 26% of banks said that they would start offering mobile P2P payment services by the end of this year.

    Fundamentally, A2A gives merchants more margin as they do not have to battle with the high charge rates typically associated to traditional transactions. And because A2A is a real-time settlement, it also enables them to drive more value to their customer base.

    An example of where A2A has resulted in significant savings is in those industries where goods and services may be priced more highly, such as travel. In 2019, the International Air Transport Association (IATA) launched IATA Pay to enable travellers to pay for flight tickets bought online by directly debiting their bank account.

    What is more, because A2A is considered an ‘open banking’ solution, it is set to become unstoppable in the South African market given the rise of digital banks and other fintechs. For the uninitiated, open banking provides third-party financial service providers open access to consumer banking, transaction, and other financial data from banks and non-bank financial institutions through application programming interfaces (APIs). This materialises in the form of apps, P2P transactions, and mobile banking solutions that many people have become comfortable with.

    While the surge in A2A payments have mainly focused on transfers between individuals and bill payments, it is only a matter of time before these become commonplace in the retail payment environment. Already, China’s WeChat Pay has moved beyond a money transfer service between people into a method of payment accepted by more than 72 million merchants.

    Touchless payments, as enabled through A2A, are replacing the traditional point-of-sale. Younger consumers are flocking to this in droves. Data shows that more than 64% of bridge millennials (33 to 43 years old) use digital wallets to pay at physical stores, while 24% have used contactless credit and debit cards to make such purchases.

    By cutting out the go-between in the transaction process, payments will become significantly more user friendly to consumers and affordable to merchants. It comes down to making the transaction journey as smooth as possible, keeping costs transparent, and being seamless for consumers who do not care what happens in the background. They simply want things to work. It is up to the merchants and the banks, whether traditional or digital, to manage the complexities on their behalf.

     

     

    Andre Hugo, CEO and Co-Founder of Spot Money SA

    • TAGS
    • A2A
    • account-to-account payments
    Facebook
    Twitter
    WhatsApp
    Linkedin
    Email
      Previous articleDPO Group granted regulatory licence to provide payments services in Nigeria
      Next articleThe Future of Gig Work
      Staff Writer

      RELATED ARTICLESMORE FROM AUTHOR

      Company News

      South Africa’s Ukheshe Technologies Joins Forces with AWS

      Security

      New Warnings Show How Hackers in Nigeria Can Remotely Steal Cars

      Gadgets and Gaming

      Huawei MateBook D14 Launches in SA: Where to Get it, Price & Specs

      - Advertisement -

      Get in touch

      9,200FansLike
      22,877FollowersFollow
      681SubscribersSubscribe

      Digital Innovation Podcast

      Digital Innovation Podcast
      Digital Innovation Podcast

      Podcast by IT News Africa

      Listen OnSOUNDCLOUD
      ITNA Digital Innovation Podcast EP 2 – ”Financial Inclusion in Africa with Vipaso & Horizon”
      byIT News Africa

      This week on IT News Africa’s Digital Innovation Podcast, Luis Monzon interviews Peter Neubauer, CEO of Austrian fintech startup Vipaso.

      Vipaso has recently released its digital payments innovation “Horizon” in many markets across Africa with Vipaso hoping to boost financial inclusion through the solution and choice partners.

      Around 57% of the total population of Africa – about 95-million people – do not have a traditional bank account, according to The Fintech Times. As millions remain unbanked in Africa, mobile penetration and internet use continues to grow, especially in massive markets such as Nigeria, Kenya and South Africa where mobile finance is booming.

      Solutions such as Horizon are being adopted at a record pace with merchants, customers and other users turning to digital innovations to quickly process and make payments, further closing the digital divide and lessening the impact of financial exclusion.
      Peter and I broach a number of topics, such as just how Horizon works to boost digital inclusion, and Vipaso’s future plans for the African Market.

      Let’s take a DIP!

      ITNA Digital Innovation Podcast EP 2 – ”Financial Inclusion in Africa with Vipaso & Horizon”
      Episode play icon
      ITNA Digital Innovation Podcast EP 2 – ”Financial Inclusion in Africa with Vipaso & Horizon”
      Episode Description
      Episode play icon
      ITNA Digital Innovation Podcast EP 1 – ”Talking E-Commerce in Africa with Telkom's Kenneth Kayser”
      Episode Description
      Episode play icon
      ITNA Digital Innovation Podcast Special Episode – ”Hyper Automation with Rocket's Jamie Devlin”
      Episode Description
      Search Results placeholder
      Trending
      • Company News, Southern Africa, Top Stories
        Capitec Bank Partners with nCino to Drive Digital Business Banking Innovation

        On Tuesday, South Africa's Capitec Bank announced a partnership with nCino...

      • Mobile and Telecoms, Top Stories
        Nokia to Use Oracle Cloud HCM to Manage HR Processes

        Nokia has selected Oracle Fusion Cloud Human Capital Management (HCM) to en...

      • Google Kenya
        Company News, Top Stories
        Google Announces 30,000 Developer Scholarships for Africans

        Google announced 30,000 Android and Google Cloud training scholarships for...

      • Features, Southern Africa
        What You Need to Know to Soar in the Digital Marketing Industry, According to Jordan Epstein

        Digital Marketing is any type of marketing that uses the internet and onlin...

      • East Africa, Mobile and Telecoms, Top Stories
        M-PESA Rakes in $1.5-Billion Amid Kenya’s Betting Craze

        Kenyans have spent Sh169.1-billion ($1.5-billion) betting through Safaricom...

      Recent Posts

      How to Deliver An Actionable Data Strategy

      South Africa’s Ukheshe Technologies Joins Forces with AWS

      Minors Won’t Get Access to Loan Services in M-Pesa Junior Accounts

      New Warnings Show How Hackers in Nigeria Can Remotely Steal Cars

      Huawei MateBook D14 Launches in SA: Where to Get it, Price & Specs

      African Technology Advisory (Pty) Ltd.
      ITNewsAfrica.com is an African Technology Advisory (Pty) Ltd. publication. We provide unparalleled insight into enterprise IT trends, innovation and technology in Africa to the most discerning professionals, entrepreneurs, investors and IT decision-makers.
      Contact us: news@itnewsafrica.com

      Connect

      • Newsletter
      • Advertise with ITNewsAfrica.com
      • Privacy Policy
      • Contact

      Partners

      © African Technology Advisory (Pty) Ltd.
      We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
      Cookie SettingsAccept All
      Manage consent

      Privacy Overview

      This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
      Necessary
      Always Enabled
      Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
      CookieDurationDescription
      cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
      cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
      cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
      cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
      cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
      viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
      Functional
      Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
      Performance
      Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
      Analytics
      Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
      Advertisement
      Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
      Others
      Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
      SAVE & ACCEPT
      Posting....
      MORE STORIES
      Features

      How to Deliver An Actionable Data Strategy