Credit card giant Amex makes push to expand in cash-dependent Africa

AFRICAN BUSINESS AND ECONOMYAugust 20, 2024 at 4:41 PM UTC

TLDR

American Express expands presence in Africa targeting hotel, restaurants, and tourism spots.
Focus on persuading businesses to accept Amex cards in a continent where cash is dominant.
Initiative aligns with rising US and European travel interest in Africa, highlighting cash preference in the region.

American Express Company is making a strategic push to expand its presence in Africa, a continent where cash remains the dominant payment method.

The credit card giant is targeting hoteliers, restaurants, and tourism destinations across Africa, aiming to persuade them to accept Amex cards, Bloomberg reported.

This initiative comes as increasing numbers of US and European customers choose Africa as a leisure travel destination. The continent is the last region globally where cash is still the preferred method of payment at points of sale.

Key Takeaways

Amex has a long history in Africa, dating back to the 1890s when it partnered with the Bank of Africa to offer travelers checks. In the 1970s, it expanded its presence by signing an agreement with Johannesburg-based Nedbank to issue cards on its network. More recently, Amex has partnered with payment processors and banks across the continent to increase its acceptance. In May, it signed a deal with Togo-based Ecobank Transnational, expanding the acceptance of its cards from 35 to 47 of Africa's 54 countries. It's also partnered with Flutterwave, Africa’s largest payments startup, enabling online merchants in Nigeria to accept Amex payments.

Business

Finance

Fintech

Credit Cards

Amex

American Express

Cash