EBANX, a global fintech leader in cross-border payments, and Ozow, South Africa's leading instant EFT payments provider, announced an expanded strategic partnership to further enhance digital payment solutions in South Africa. The collaboration aims to streamline transactions, support merchants of digital goods and services, and cater to the country's young, tech-savvy population. The announcement was made on Thursday, 30 May 2024, during an event in Cape Town.
"Our enhanced collaboration with Ozow is a testament to our belief in the potential of the South African market," said Wiza Jalakasi, Director of Africa Market Development at EBANX. "By integrating these advanced payment solutions, we aim to deepen our service offerings and deliver a superior user experience. South Africa's digital economy is on a rapid growth trajectory, and we are excited to be a part of this evolution."
Lyle Eckstein, Chief Product Officer and Co-Founder of Ozow, "Ozow's mission has always been financial inclusivity. By joining forces with global powerhouse Ebanx, we are taking a giant leap towards that goal. This groundbreaking partnership unlocks the doors to international e-commerce for South African shoppers, empowering them to securely access global retailers using our trusted solutions."
This partnership comes at a pivotal time as South Africa's digital economy continues to expand, fueled by increasing demand for digital services and the creative economy. The country boasts one of the highest digital commerce penetration rates in Africa at 47%, with the market expected to accelerate by 16% annually through 2026, according to PCMI data in the Beyond Borders study. In contrast, more consolidated markets like the U.S. and Europe are projected to see slower growth of 13% and 12%, respectively, per Statista.
Global digital companies launching services across Africa are experiencing strong growth due to the continent's young, digital-savvy population. With 1.4 billion people and about 60% under the age of 25, Africa's median age is 18, compared to 38 in North America and 42 in Europe, according to the United Nations in Beyond Borders. Digital industries in Africa are outpacing global averages, particularly in SaaS (25% vs 21%), delivery apps (21% vs 9%), digital ads (17% vs 11%), and streaming (14% vs 11%), as reported in Beyond Borders 2023.
Seamless payments are crucial to unlocking the potential of this continental market, which is expected to surpass China and India and reach 1 billion adults by 2030. EBANX and Ozow are well-positioned to meet this demand and reinforce South Africa's importance in the African and global digital economies by providing frictionless payment experiences.