PayPal: mobile is key to South African Ecommerce market growth
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PayPal: mobile is key to South African Ecommerce market growth

South Africa has 52% internet penetration (that is, 52% of its population is online). That’s slightly above the world average, and much higher than the African average, but it trails countries in the developed world by 20% to 30%. It’s possible that this is amongst the reasons that its Ecommerce market is so small for a country of its wealth, when compared to places like Australia. PayPal thinks that’s about to change – thanks to mobile browsing.

According to Efi Dahan, director of the Africa region for PayPal:

“By next year you will see around 50% of online purchases in SA done by mobile‚ which is the highest number in the world. I’m sure the mobile penetration will close the gap and give people here a lot of advantages to do better online shopping. Mobile will be one of the drivers to take consumers and merchants into a better ecommerce environment.”

Dahan was speaking after the release of a co-authored study from PayPal and researcher Ipsos on cross-border spending. According to the report, the ecommerce market will grow 28% this year, and a third of the new transactions that make up this growth will come from mobile.

Dahan also thought that the South African government was playing a part in the country’s improving ecommerce market, saying:

“Government have not created many obstacles for ecommerce locally and have been open to continuing to develop this market. They want to reduce the cost of living for people‚ and they know that ecommerce is a very important platform for doing that.”

Dominion holds PayPal in its Global Trends Ecommerce Fund.

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