Nigeria Lags Behind Kenya and South Africa in B2B Payments, says Duplo Report

Nigeria’s B2B payments trail Kenya and South Africa; Duplo report reveals adoption disparities in adoption of electronic bank transfers amongst many other things.

A recent report by Duplo, a Nigerian-based B2B financial software firm, reveals that Nigeria is lagging behind Kenya and South Africa in developing key business-to-business (B2B) payment processes on the African continent. The report, based on survey responses from over 1,200 professionals in Kenya, Nigeria, South Africa, and Ghana, highlights disparities in the adoption of electronic bank transfers, invoice processing speed, and payment automation.

South Africa leads the way in electronic bank transfers, with 49.1% of respondents choosing it as their preferred payment method to vendors, closely followed by Nigeria at 48.5%, Ghana at 34%, and Kenya at 31.9%.

Kenya outpaces other countries in payment automation, with 83.4% of Kenyan professionals stating their payment systems are either semi-automated or fully automated. Nigeria follows at 79.9%, South Africa at 71.69%, and Ghana at 67.23%.

On processing invoices, South Africa slightly edges out Nigeria, with 39.93% of respondents stating it typically takes a day or less to process invoices, compared to Nigeria’s 39.74%.

According to Duplo, Africa’s B2B payment sector presents a significant yet untapped opportunity, with the continent’s share of the global B2B payment opportunity standing at $1.5 trillion, as per the World Bank. However, businesses face considerable payment delays and process issues that impact cash flow and hinder growth.

Digital payment solutions have emerged in recent years to address these challenges. However, security remains the most critical feature for respondents when choosing B2B payment software, with 35.89% valuing it the most.

The report also emphasizes the importance companies attach to safeguarding their financial data, with Kenya (39.9%), Ghana (36%), South Africa (35.6%), and Nigeria (32.2%) all ranking security as the top feature.

Functionality and ease of use (17.6%), multiple payment options (13.5%), and speed (12.9%) follow, reflecting a preference for payment flexibility and quick transactions. Pricing (11.5%) and scalability (8.2%) are less prioritized, indicating a focus on functionality and immediate needs.

Yele Oyekola, CEO, and co-founder of Duplo, believes that despite challenges, the future of B2B payments in Africa holds dynamic growth and innovation, offering new opportunities and expansion for the continent’s business ecosystem. The increased adoption of digital solutions signifies a shift in workplace dynamics and empowers finance professionals to add more value to their organizations.

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