SCCG's latest research reveals the full panorama of the payment ecosystem in the African iGaming industry
An exclusive report from SCCG Research provides Gambling Insider with an in-depth insight into the African iGaming industry, focusing on the region's growing cashless trend, diversified payment methods, and key infrastructure changes. The study emphasizes that payment systems are not only the core of online gambling operations but also a key driver in the development of the African gambling market.
Mobile Money: The Mainstay of Payments in Africa
In East, Central, and parts of West Africa, mobile money services are the most commonly used payment channels for online betting users. These systems are supported by telecommunications companies, are convenient to operate, and are cost-effective, making them popular. For example:
Kenya: Over ninety percent of online betting is completed through Safaricom's M-Pesa, where users simply enter a recipient number on their mobile phones to easily deposit or withdraw.
Tanzania: M-Pesa, Airtel Money, and Tigo Pesa are almost ubiquitous, with nearly half of the adult population owning a mobile wallet.
Uganda: MTN and Airtel lead in mobile payments, allowing users to transact via USSD codes on feature phones.
Ghana: Agents are widespread across the country, where players can exchange cash for electronic balances at street shops and place bets.
Nigeria: Although mobile payment penetration is low (only about 4% use it), fintech companies like OPay and Paga are filling this gap.
The success of mobile money payments also depends on deep cooperation between gambling operators and telecommunications companies. For example, Kenya's telecom company Safaricom provides payment merchant numbers to hundreds of gambling companies and has shown its actual influence on the gambling industry in some policy frictions.
Bank and Card Payments: A Necessary Supplement in Some Markets
In regions with a more developed banking system, bank cards and accounts still hold a place:
South Africa: Bank cards (Visa, MasterCard), instant EFT, Ozow, SID are widely used, and some banks also offer services like eWallet.
Nigeria: Nearly forty percent of the population has a bank account, and USSD transfers along with payment gateways like Flutterwave and Paystack make using bank cards convenient and fast.
French-speaking African countries: Countries like Ivory Coast and Senegal use the GIM system, supporting bank cards, but low limits and fraud risks still restrict their popularity.
However, despite the existence of bank cards, many users still prefer mobile wallets due to their speed, low cost, and reliability.
The Diminishing Role of Global E-wallets, Rise of Local Solutions
International e-wallets like Skrill and Neteller were once the main tools for players participating in overseas gambling, especially in the early stages when local payment systems were not mature. However, most local regulatory platforms no longer rely on these services, with only a few high-stake users or poker enthusiasts still using them.
South Africa is one of the few exceptions, where some gambling platforms still accept Skrill deposits, helping players bypass bank restrictions on gambling transactions. Meanwhile, PayPal's influence in Africa is extremely limited due to its non-supportive stance towards gambling merchants.
Call Time Billing: Tried but Not Established
Some countries have tried allowing users to bet using prepaid call credits, such as through SMS or direct call time deductions, but due to regulatory concerns and opaque fund flows, this practice has mostly been abandoned.
However, there have been precedents for using call time for lottery bets in regions like Cameroon and Ghana, indicating that this innovation was still briefly explored in some markets.
Vouchers and Cash Channels: Important Bridges Connecting Online and Offline
As cash remains predominant in most parts of Africa, introducing cash into the iGaming payment system is a problem that operators must solve:
Prepaid voucher codes (like 1xBet's 1xPay, South Africa's OTT, and 1ForYou) are sold through retail stores, allowing players to purchase with cash and recharge online.
In Ghana and Nigeria, players can go directly to agents to deposit cash or withdraw winnings through agents using their own operator wallets.
Some platforms also support deposits through bank counters or ATMs, although these methods are less used due to the convenience of mobile money.
Cryptocurrency: Potential and Limitations Coexist
Cryptocurrency is still a fringe technology in the African gambling market but is gradually gaining favor, especially in countries with unstable currencies or restricted foreign exchange (like Nigeria and Zimbabwe):
Some bettors use Bitcoin or stablecoins (like USDT) to bet on international platforms, hedging against local currency depreciation.
Some offshore operators (like those accepting BTC on crypto gambling platforms) are promoting cryptocurrency gambling services in African forums, gradually penetrating the market.
However, most legal, licensed operators still do not accept cryptocurrencies, mainly because regulations have not yet clarified relevant guidelines. At the same time, the penetration of cryptocurrencies among the general public remains low.
It was reported that Uganda's BetLion briefly experimented with accepting crypto deposits in 2022, but more commonly, underground P2P transactions or the use of VPNs and cryptocurrencies to bypass restricted platforms for anonymous betting are still prevalent.
Outlook: The Integration of Digital Infrastructure Determines Future Competitiveness
SCCG points out that the payment system in African iGaming is becoming increasingly diversified, and operators must accommodate mobile wallets, bank cards, cash vouchers, and other payment methods, adapting to different financial ecosystems in various countries.
Especially in terms of payment method localization and cross-platform integration, those who can provide the most seamless and convenient payment experience will have an advantage in the competitive market. In the future, as the younger generation's acceptance of blockchain and cryptocurrencies increases, this field may become a new engine of growth.
Understanding the detailed differences in payment methods across African regions is a key factor for international gambling operators to successfully expand.
