A look back: Last year, we made four predictions for 2022. Here are two that were too close to call.
Prediction 1: We expected that Block would make its super app play in 2022.
Our reasoning: Block made several moves in 2021 that pointed toward it launching a super app this year.
Why we’re not calling it a loss: Block doesn’t have a super app yet, but it took more steps toward becoming one this year.
Prediction 2: We thought multinational financial services companies would shift from partnerships to acquisitions in Africa.
Our reasoning: Africa was ripe for digital payments growth, and we believed firms would tap this opportunity through acquisitions. Full ownership would let companies like Visa, Mastercard, Block, and PayPal scale more quickly in the market.
Many of these multinational firms partnered with local players like Nigerian paytech Flutterwave and Zambia-based wallet Digital PayGo last year as cash use declined across the continent: The share of point-of-sale (POS) payments made with cash in the Middle East and Africa dropped 16.3% year over year (YoY) in 2021, per FIS.
Consolation prize: There were no major acquisitions like we expected, but there was an increase in investments into African fintechs—an impressive feat considering this year’s funding crunch.
Widespread economic uncertainty likely scuttled acquisition plans in 2022. But market conditions haven’t shaken confidence in the region’s digital payments potential from the likes of Visa and Google, which means deal talks may arise down the road.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
11 Times SquareNew York, NY 100361-800-405-0844