Nigeria's Position in Africa's B2B Payment Revolution Revealed in New Duplo Report

A recent report by Duplo, a leading business payment platform catering to African enterprises of all sizes, sheds light on Nigeria's standing in the B2B payment landscape compared to South Africa and Kenya.

?Electronic Bank Transfers: A Comparative Analysis

The "Exploring the State of B2B Payments in Africa" report, based on the input of over 1,200 professionals from Ghana, Kenya, Nigeria, and South Africa, reveals that South Africa is leading in the adoption of electronic bank transfers. Approximately 49.1 per cent of respondents from South Africa prefer this method of payment when dealing with vendors. Nigeria closely follows with 48.5 per cent, while Ghana and Kenya stand at 34 per cent and 31.9 per cent, respectively.

?Payment Automation: Kenya Takes the Lead

In terms of payment automation, Kenya emerges as the frontrunner, with an impressive 83.4% of Kenyan professionals stating that their payment systems are either semi-automated or fully automated. Nigeria ranks second with 79.9%, followed by South Africa at 71.69% and Ghana at 67.23%. The inclination towards automated processes underscores the region's progressive approach to streamlining financial transactions.

?Speed of Processing Invoices: A Close Contest

When it comes to the speed of processing invoices, South Africa holds a slight advantage, with 39.93% of respondents indicating that invoices are typically processed within a day or less. Nigeria closely trails with 39.74%, reflecting a similar level of efficiency in invoice handling.

?Untapped Opportunities in Africa's B2B Payment Sector

The B2B payment sector in Africa represents a massive, yet largely untapped opportunity, mainly due to the complexities and substantial transaction volumes associated with such payments. According to the World Bank, the continent's share of the global B2B payment opportunity stands at a staggering $1.5 trillion. However, despite this potential, numerous businesses face payment delays and other issues, impacting their cash flow and growth. Digital payment solutions have made significant strides in alleviating some of these challenges, yet there are still hurdles to overcome in facilitating seamless money flow between African businesses.

Critical Features in B2B Payment Software

The report identifies security as the most crucial aspect when choosing B2B payment software, with 35.89% of respondents prioritizing this feature. This trend remains consistent across individual countries, with security topping the list in Kenya (39.9 % ), Ghana (36 % ), South Africa (35.6% ), and Nigeria (32.2 % ). Functionality and ease of use (17.6 % ), multiple payment options (13.5% ), and speed (12.9 % ) follow, demonstrating a preference for payment flexibility and swift transactions. Pricing (11.5 % ) and scalability (8.2 % ) are of lower priority, indicating a focus on immediate needs and functionality.

A Promising Future for B2B Payments in Africa

Yele Oyekola, CEO, and co-founder of Duplo express optimism about the future of B2B payments in Africa. Oyekola believes that the continent is poised for dynamic growth and innovation, signalling a new era of opportunities and expansion for the business ecosystem. Automation of accounts payable and receivable, along with the transformation of other payment processes, holds the potential to reduce payment delays, enhance cash flow, and drive growth for businesses across the continent. Moreover, the increasing adoption of digital solutions will lead to a shift in workplace dynamics, empowering finance professionals to contribute more value to their organizations. Duplo aims to play a pivotal role in realizing these opportunities by delivering technology solutions that support business growth throughout Africa.

?In conclusion, the Duplo report sheds light on Nigeria's position in Africa's B2B payment revolution. While Nigeria trails South Africa and Kenya in certain aspects, the continent's B2B payment sector remains an untapped opportunity with tremendous potential for growth and innovation. By addressing challenges and embracing digital solutions, African businesses can pave the way for a more efficient and prosperous future.

Download dublo report

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