While cash remains the primary payment method in Africa, the electronic payment market is experiencing rapid growth. This surge is fueled by the emergence of various cross-border payment solutions that offer quick and affordable transactions.

On Thursday, July 18, American payment firm MasterCard announced a collaboration with Premier Bank, a Somali commercial bank. The initiative aims to launch the "Premier Payment Gateway," a digital payment platform enabling Somali businesses to accept international card payments for online purchases.

Explaining the benefits of this collaboration, Shehryar Ali, Country Manager for East Africa and the Indian Ocean Islands at MasterCard, stated that this partnership will provide Somali businesses with access to a secure online payment gateway, allowing them to accept payments, expand their customer base, and increase their revenues.

The collaboration aligns with Premier Bank's 2030 strategy to create a payment ecosystem beneficial for both cardholders and international merchants. For MasterCard, this highlights its commitment to fostering financial inclusion and supporting businesses globally, with the goal of integrating 50 million micro and small enterprises into the digital economy by 2025.

This initiative comes at a time when online payments are experiencing rapid growth in Africa, largely due to the Covid-19 pandemic. According to the "Future of Commerce: Outlook for 2024" report by digital economy consultancy TechCabal Insights, the number of online shoppers in Africa is expected to grow at an average rate of 17.9% per year between 2023 and 2027, reaching 609.3 million shoppers in 2027, up from 387.5 million in 2022.

The Premier Payment Gateway platform, launched as part of this partnership, will provide Somali businesses with the necessary tools to capitalize on the growing demand for online shopping. With 7.99 million mobile cellular connections in Somalia at the start of 2023, representing approximately 44.7% of the total population, and increasing internet accessibility, this digital payment gateway is well-positioned to meet evolving consumer expectations for a safe and seamless online shopping experience.

Samira Njoya