Visa’s Torre details plans to expand digital payments in SSA

Visa, a global payments technology company, recently hosted its regional heads in Johannesburg to discuss the latest trends in payment solutions impacting its business, with a particular focus on the rise of digital payment systems. Andrew Torre, the regional president for Central and Eastern Europe, Middle East, and Africa for Visa, sat down with CNBC Africa to shed light on the company's activities in Sub-Saharan Africa and its investments in the region. Torre emphasized the importance of leveraging digital means to connect more consumers and merchants, thereby enhancing financial inclusion and driving economic growth. He highlighted that two-thirds of Africans lack access to financial accounts, and approximately 45 million sellers in the region do not have access to electronic payment methods, resulting in only 5% of consumer purchases being in electronic form. Torre stressed that increasing electronic payments could lead to significant economic growth, with every 1% increase in electronic payments correlating with a 3% increase in economic growth in emerging economies. The push towards digital payments is not only crucial at a macro level but also essential for individual consumers who seek secure savings and spending opportunities. Additionally, enabling more sellers to join the ecosystem has shown a 17% increase in sales, indicating the vast potential of digital transactions to boost commerce. Visa's efforts in Sub-Saharan Africa have already yielded positive results, with e-commerce tripling over the last five years and a substantial increase in contactless transactions. The number of sellers connected to Visa in the region has surged from 600,000 to over 2 million, underscoring the progress made in expanding digital payment access. Torre also discussed the impact of digitization in bridging the gap in financial inclusion on the continent. Visa's initiatives include investing in people and locations across Africa, enhancing innovation through programs like the Visa Everywhere Initiatives, and introducing new digital solutions for small sellers. The company has intensified its focus on cross-border payments and remittances, aiming to modernize these processes and make them faster, safer, and more secure. Torre emphasized the importance of improving access to financial services, particularly for the millions of Africans living overseas who rely on remittances. Visa's vast network of cards, bank accounts, and wallets enables quick, seamless, and instantaneous transactions, ensuring that funds reach recipients promptly. The company collaborates with partners to provide user-friendly interfaces that facilitate efficient money transfers, reflecting its commitment to advancing digital payments in Sub-Saharan Africa.