The way that businesses accept payment for goods and services has changed so much in recent years. While it has traditionally revolved around the use of physical currency, technological innovations have opened up new possibilities in the area.
Such trends have been put in the spotlight following a major new announcement which could have a big impact on Nigerians, with Uber launching its own tool designed to simplify payments for its services.
A new payment method
Nairametrics is one of a number of sites which have covered the news that Uber Cash is now available in countries including Nigeria.
As the site explains, the service has been established in conjunction with online payment solution company Flutterwave and has been created to give people a new way to pay for their trips. Furthermore, it also means people can actually pay ahead of their ride, so there is an extra level of convenience on offer.
Uber Cash allows users to create an account and keep it topped up with funds which can then be used to cover the cost of their journeys. A range of options can be used to add money to the account, while Nairametrics adds that people can still also make use of existing payment methods such as cash and gift cards to pay for their rides.
Alon Lits, director of Sub-Saharan Africa for Uber, said the aim was to offer an approach that was “controllable, convenient and reliable”. The launch of the service not only reflects growing interest in digital payments across Africa, but also trends across the world as well.
Changing times
For example, a study added to ResearchandMarkets.com’s offering at the end of May looked at the rise of online payment methods across the Middle East and Africa and found that two-thirds of people in April 2020 reported reducing their use of cash in recent months. It also found that FinTech companies in both regions were helping digital payments grow, with the likes of Interswitch and Opay in Nigeria securing investment across 2019.
Elsewhere, in the middle of June, a new study by Mastercard found that many consumers across the world were moving to digital payments, with seven out of ten stating that the shift was likely to be permanent. In addition, around half of the respondents added that they intended to use cash less going forward. The study did not include specific data on Africa, but it highlighted how people across the globe are actively cutting their use of cash and in some cases not utilising it at all.
While ride-hailing apps like Uber are clearly embracing digital payments, there are many other parts of the business world which are taking the step as well. For example, PayPal is a hugely popular service across the globe and on its site it lists the range of different areas which now accept it as a payment method. Entertainment brands like Game Planet and Steam are featured, alongside fashion companies like Asos and Calvin Klein and the likes of Etsy and eBay. Sports betting sites in Nigeria are also open to a range of payment options too, with this site explaining how people in Nigeria can deposit funds using Interswitch, online transfers and more traditional methods like debit cards.
Looking to the future
All in all, the introduction of Uber Cash in countries like Nigeria is another good opportunity to reflect on the huge impact that digital payment methods are now having across the world.
It is clear that businesses need to get wise to this trend and, if they have not already, consider how they could integrate such systems into their services. Cash appears to be a thing of the past, so it is time for companies to look to the future.
