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Home » Cards and Digital Payments » Credit Card Profitability » Credit Card Profitability: Africa

Credit Card Profitability: Africa

Author: Lafferty Research

Publishing date: April 2018

Payment cards are in their infancy in Africa, and this is especially true of credit cards. While South Africa and Mauritius are relatively well-developed cards markets, this is not the case in the other seven markets covered in this report: Angola, Egypt, Ghana, Kenya, Morocco, Nigeria and Tunisia. Indeed, credit card penetration exceeds five percent in only one of those markets — namely Egypt, where it stands at nine percent.

The region is dominated by South Africa, which accounts for the bulk of the regional total in key metrics such as purchase volume and credit card outstandings. However, despite this, the share of the total held by South Africa has declined across all metrics from 2011 to 2017, while the total figures have grown. This shows that the rest of the region has been growing, albeit from a low base. Mauritius has also established itself as a regional, if not a global, star. On a per capita basis, the island nation rivals South Africa in key metrics such as the average credit cardholding as well as POS coverage. In 2017, of the 72 markets covered by Lafferty, Mauritius was ranked as the thirteenth most profitable global market on a per card basis.

The underdeveloped nature of the region also means that high growth potential exists. However, unless industry stakeholders put a comprehensive POS infrastructure in place, a ceiling will always exist which will limit credit card profitability. Stakeholders should also be aware that the payment cards industry faces a potential threat from mobile money, although the ubiquity of mobile phones and the popularity of mobile payments may also be harnessed to serve issuers, acquirers and networks.

Credit Card Profitability: Africa looks at the region's top cards markets to unmask the trends and individual characteristics of these various countries and addresses significant issues, including:

  • The dynamics and key metrics behind credit card profitability
  • How and why credit card revenue streams are changing
  • The effects of -- and trends in -- credit losses
  • How differing consumer attitudes to credit affect profitability
  • How the unique characteristics of the region's cards markets affect the region's profit pools

Credit Card Profitability: Africa also provides you with critical data for each country, including:

  • card numbers by type, including credit, debit, prepaid
  • billed volume on credit cards (POS, ATM, total)
  • number of transactions on credit cards (POS, ATM, total)
  • average transaction value on credit cards (POS, ATM, total)
  • credit card profitability indicators (rollover rates, net credit losses, interchange fees)
  • Lafferty Group's unique credit card profit pool calculation

Purchase this report from the link at the top of this page, or to find out more about Lafferty Research Services subscription packages and enterprise licences, email or call +44 (0) 203 633 1630.


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