Download - An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa
![Page 1: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/1.jpg)
An Exploratory Study on E-commerce, Digital Payments and Digital Remittances in East Africa
Christine Mahihu Leonida Mutuku
20th November 2013
![Page 2: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/2.jpg)
Why this research?
What factors are influencing consumer use of digital money and the growth of e-commerce in Kenya (and the rest of Africa)?
![Page 3: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/3.jpg)
Data Collection
![Page 4: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/4.jpg)
Data Collection
• Use of BiNu platform to collect quantitative data about consumers
• In-depth interviews with e-commerce/digital payment start-ups
• Literature Review
![Page 5: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/5.jpg)
BiNu +++ • Fantastic for rapid data collection – 528
responses in less than 2 weeks!!! • Small learning curve - easy to set up and no
coding required --- • Sample restricted to current demographics using
BiNu - mostly urban males aged between 18 and 35
• Given access is via mobile phone limits number of questions we can ask
![Page 6: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/6.jpg)
In fact….
![Page 7: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/7.jpg)
Findings
![Page 8: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/8.jpg)
Consumers Products
Businesses Channels
Payments
E-commerce
![Page 9: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/9.jpg)
• From Travel Industry e.g. Travelstart, 3G Direct Pay
• Mama Mikes - oldest local online
stores(from 2001) offering gifting services to Kenyans both within and out of the county.
• Payment options for these
businesses were mostly credit and debit cards as the target client was either more affluent or in the diaspora.
E-commerce Pioneers
![Page 10: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/10.jpg)
• Buy online pay online -includes receiving the good or service digitally or physically.
• Buy online pay offline –includes physical
delivery or pick up • Find online, go to shop to buy and pay
offline.
E-commerce Trends
![Page 11: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/11.jpg)
More than 40% of the respondents in EA
urban cities are e-commerce consumers.
![Page 12: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/12.jpg)
Goods Bought Online
Airtime most popular… Perhaps purchasing airtime via mobile money?!
n=226
![Page 13: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/13.jpg)
Where are People Buying From
![Page 14: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/14.jpg)
Access to E-commerce
Goods mainly bought from online sites
Mobile phones are key devices in e-commerce
n=226
![Page 15: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/15.jpg)
Cash Is still King! • Mobile money replacing cash: Mobile money was either the most
popular or among the top two payment services among businesses interviewed.
• Airline travel related payments rely heavily on credit card
transactions.
Payment Options for E-commerce
Credit Card penetration is only at 10% in Kenya (Travelstart).
![Page 16: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/16.jpg)
Challenges faced by consumers vs. startups
• Payments: Difficult for consumers to make payments and start-ups limited by mobile money and high fees.
• Trust issues of payment platforms and general satisfaction with delivered goods.
• Security challenges for businesses on their payment platforms.
![Page 17: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/17.jpg)
Future Trends/Discussions
• Rapid growth of e-commerce – pinned to adoption by utility companies and government services.
• What role will mobile money play in expanding this space?
• Other Factors : – Better regulation – Merging of platforms/
services – Raised Awareness
Levels
![Page 18: An Exploratory Study on E-commerce, Digital Payments & Digital Remittances in East Africa](https://reader033.vdocument.in/reader033/viewer/2022052906/558b5124d8b42a8e078b46a7/html5/thumbnails/18.jpg)
Thank You! Christine Mahihu [email protected] Leo Mutuku [email protected] @iHubResearch | @sokoni | @C_Leo_patra