Payroll innovation could help millions of unbanked citizens in Africa

The introduction of new payroll models could help to support millions of unbanked citizens across Africa. That’s according to global payroll specialist, CloudPay.

As the global leader in mobile money, accounting for 70% of the global $1.26 trillion market, Africa poses a huge opportunity to deliver pay via mobile technology to those who need it. According to the firm’s analysis of the market, there are approximately 370 million unbanked people on the continent, however, there are 763 million registered mobile phones. Adopting innovative payroll processes like pay-on-demand, which utilises digital wallets and enables workers to access their accrued earnings through mobile devices, could potentially free millions of people from financial hardship.

Ferdinand Dragtstra, Strategy Director – New Markets, CloudPay

“Africa already leads the way when it comes to mobile money, however, millions of people often have to wait for extended periods to receive their pay meaning they are essentially restricted by their employers when it comes to everyday needs like food, healthcare and education. If more businesses and public bodies look to adopt innovative payment models, that are mobile-enabled, it could empower people across the continent and provide them with more financial freedom, inclusion and flexibility. This is particularly vital for more vulnerable groups, especially women. In rural areas, formal financial services only reach around 10% of communities. It’s common knowledge that if females had access to the same resources as men in Africa, up to 150 million people would be lifted out of hunger .”

“We are already seeing growing demand for these solutions, and increasing momentum of adoption. In 2022, there were 45 billion transactions made in Africa, for a total value of $832 billion, and mobile money bulk disbursements, including salary payments, grew by 23% to over $80 billion. Mobile technology could provide the platform for change however that’s only one half of the puzzle. To truly free workers, employers must financially empower them by granting access to pay when it’s needed.”


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