Visa, a trusted world leader in digital payment technology that connects and enables individuals, businesses, and economies to thrive, has disclosed plans to invest US$1 billion over the next five years in Africa to capitalize on the emerging economy’s rapid growth in digital payments.
In a statement, the Chief Executive Officer of Visa, Alfred Kelly Jr, noted that Visa has been investing in Africa for several decades to grow a truly local business, “and today our commitment to the continent remains as firm and unwavering as ever,” he stated.
“Every day, Visa supports digital commerce and money movement in every country across the continent, and Africa remains central to Visa’s long-term growth plans. We look forward to continuing to work closely with our partners to advance the financial ecosystem, accelerate digitization, and to build resilient, innovative, and inclusive economies that will create shared opportunity and further spur Africa’s digital economy.”
Alfred Kelly Jr
The investments in Africa shine a new light on a major growth opportunity on the continent where cash is likely to be challenged in coming years as e-payments gain momentum, according to a McKinsey report.
Africa’s booming e-payments market is expected to see revenues grow by nearly 20% a year, reaching around US$40 billion by 2025, compared with about US$200 billion in Latin America, the report added.
Andrew Torre, Visa’s Regional President for Central and Eastern Europe, Middle East, and Africa, hailed the investment plan by Visa. He thus, acknowledged the growth potential of the African region. “It’s one of our fastest growing regions,” he pointed out.
Visa Adds More Employees
Andrew Torre further disclosed that the world’s largest payments processor has added over 50% more employees in the continent since the end of 2019, with the vast majority during the pandemic.
The investments will scale Visa’s operations in Africa and deepen ties with governments, fintech, and merchants, according to the statement. It will also help “strengthen the payment ecosystem through new innovations and technologies”.
Among new technologies, the company recently rolled out Visa Acceptance Cloud, a platform that turns virtually any device into a payment terminal. In line with Visa’s corporate purpose to be the best way to pay and be paid, these investments will facilitate additional opportunities to expand financial inclusion.
Visa adds that it is dedicated to empowering small- and women-led entrepreneurship in Africa through its operations and community programs. Today, an estimated 500 million people in Africa are without access to formal financial services, less than 50% of the adult population made or received digital payments in Africa, and more than 40 million merchants do not accept digital payments.
Visa has recently made significant strategic investments to advance its Africa expansion, including establishing local operations for the first time in the Democratic Republic of Congo, Ethiopia, and Sudan to help support and strengthen the local financial ecosystem. Visa has 10 offices across Africa from which it supports payments in all 54 countries.
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