Research Papers | Agpaytech

Agpaytech Research


Stay updated with the latest trends, and finance-based commentary brought exclusively to you by Agpaytech.

July, 2024

Can Nigerian FinTechs lead the change to a Cashless Economy? The 226.5 million market in Nigeria is with over 220 Fintechs. But consumers want more and more convenience. Can Fintechs lead the cashless economy by 2040? Fintechs are revolutionizing every sector of the Nigerian economy, not just the payment sector.

Think of security markets, education (EduTech), agriculture (AgricTech), transport and urbanization (smart cities), regulation (RegTech), etc. Payment of utility bills, remittances, ecommerce (Jumia Nigeria Pay), mobile transfer and QRCode pay. Fintechs, digital banks and Telecoms are leading the cashless future of Nigeria. Thanks to the Central Bank of Nigeria and NDIC, NOTAP, SEC, NIBSS, etc., for timely regulation guidelines that reshaped the Fintech activities.

Read full report here

June, 2024

The Chinese Renminbi (RMB) has surpassed the US Dollar (USD) in crossborder receipts and payments within the nonbanking sector. In Q1 2024, payment in RMB surpasses USD and gets par with all other currencies combined according to data from the Chinese State Administration of Foreign Exchange (SAFE). The SAFE data showed that 16.2m were received in RMB against 15.1m.

Major players such as Alipay, Alipay+ WeChat Pay, UnionPay International, PingPong Payments, and LianLian Pay are at the forefront of this rapidly growing market.

Read full report here

June, 2024

In 2023, the losses reported due to financial investment scams became the most of any crime type tracked. Investment fraud losses rose from $3.31 billion in 2022 to $4.57 billion in 2023, a 38% increase. Most of such crimes targeted financial transactions and institutions in Africa.

With the rapid digitization of financial services across the continent, cybercriminals are exploiting vulnerabilities to perpetrate fraudulent activities. This report explores the strategies for combating financial cybercrimes and proposes the implementation of a cybersecurity levy on consumers' originating transactions to bolster defenses and reduce the one-way cost of business.

May, 2024

Research into multi-retail CBDCs projects which has the potential to bridge payment deficiencies in Africa has not been prioritized. Unlike the Europe and Asia countries, central banks in Africa need to interlink rCBDCs to achieve significant financial interoperability and bilateral trade.

This report establishes a framework for interlinking rCBDCs in the continent’s financial ecosystem that includes; 🔹 Agreement and setting strategic goals 🔹 Developing technical infrastructure 🔹 Features considerations and settlement mechanism 🔹Deployment and management

May, 2023

The Pan-African Payment & Settlement System (PAPSS) and India's Unified Payments Interface (UPI) are two prominent payment platforms that can potentially transform the financial landscape in their respective regions. UPI has gone beyond borders, connecting other international payment systems such as UPI-UPI-PayNow, UPI-PhonePe, and UPI-TerraPay. Recently, India and Mauritius announced a collaboration to see UPI and RuPay connectivity with the Mauritius MuCAS system.3

This report provides insights on the possibility of UPI interlinking with PAPSS to boost regional trade without any limitations and restrictions for businesses and individuals.

April, 2024

Digital Payment Systems And Consumers Experience 2023

In a groundbreaking survey conducted across the continent, Agpaytech and RegTech Africa have revealed a shift in consumer preferences towards digital payment methods. With 2,591 respondents from diverse regions, the findings underscore a resounding vote of confidence in electronic transactions, with a staggering 91% of participants expressing a clear preference for digital payment approaches over traditional cash methods. A resounding 76% of respondents voiced concerns over the absence of a unified payment platform, advocating for such like the India’s UPI to consolidate their myriad of payment accounts seamlessly. Notably, 73.5% of respondents leveraging banking apps for various transactions. Whilst, 85.5% utilize these apps for fund transfers and other payments, significantly reducing reliance on physical bank branches. The survey reflects central banks growing appetite for digital currencies. Despite their potential to transform financial infrastructure, 69% of participants admitted to lacking any knowledge of CBDCs in Africa. Moreover, only 19.8% expressing agreement with their issuance, while 47.9% opposed the idea, and 32.3% remained uncertain. Looking ahead, the research identifies a burgeoning interest in innovative payment trends, including personalized services such as 'buy now pay later,' 'save now buy later,' WhatsApp banking, CBDCs, and open banking.

March, 2024

Connecting Systems, Improving Payments: UPI vs. PayNow

The India’s UPI has transcended beyond border connecting to several national payment systems internationally. For instance, UPI and Paynow are two prominent real-time payment systems in India and Singapore respectively, represents a significant milestone in cross-border financial interoperability. This report provides insights on the possible opportunities for remittance transfers, cross-border payments, business deals and e-commerce as a results of UPI and PayNow integration

March, 2024

Driving Payment Innovations Among MSMEs Through Transactional Banking

Transactional banking (TB) services are extended to individuals and corporate businesses to support their trade and other operations by facilitating payments, readily accessible and available cash at any time. TB has proven to be effective in periods of crisis and its business model is client-focus. By leveraging transactional banking services,SME's can streamline their payment processes, improve financial efficiency, and enhance their competitiveness in the digital economy in these ways; Access to various payment facilitating options through a growing network of financial intermediaries, Improved working capital through payment certainty and faster transactions and Instant/near-instant payments of cross border Transactions without the hassle of currency conversion

February, 2024

Blockchain’s role in shaping the future landscape of financial transactions 2024

Blockchain continues revolutionising financial technology (Fintech), offering enhanced security, transparency, and efficiency in financial transactions. Blockchain enables Fintech firms to streamline payments, lending, and asset management through decentralized ledger technology, reducing costs and eliminating intermediaries. Smart contracts automate agreements and enforce terms without the need for third-party oversight, facilitating faster and more secure transactions.

February, 2024

Unlocking Regulatory, Technical and Network Interoperability for Cross-Border Payments

This research addresses the critical challenges hindering the efficiency of cross-border payments in Africa by focusing on cracking regulatory, technical, and network interoperability. As the African continent experiences rapid economic growth and increased trade activities, the need for seamless and secure crossborder transactions becomes paramount. This research seeks to provide insights and recommendations to foster a conducive environment for improved interoperability, ultimately enhancing the overall financial infrastructure in the region.

January, 2024

Workflow for Accessing UPI Platforms from Foreign Countries

Unified Payments Interface (UPI) has revolutionized digital payments in India, providing users a convenient and secure way to conduct transactions. For individuals residing in foreign countries who wish to access UPI platforms, a structured workflow ensures a smooth and hassle-free experience. The streamlined workflow for individuals residing in foreign countries to effortlessly access Unified Payments Interface (UPI) platforms. By adhering to this comprehensive process, users can experience the advantages of secure and efficient digital transactions, all from the convenience of their international locations. This article outlines the step-by-step process for navigating UPI services from abroad.

January, 2024

What are the major payments trends in Africa for the year 2023?

What is the outlook for 2024? This report provides overview of the major payment news and progress in Africa for the year 2023. It covers CBDC, Fintech diplomacy, telecommunication deals, lending and investment, regulatory systems and embedded finance.

January, 2024

Integrating India’s UPI to Payment Systems in Africa

India’s UPI is reaching many parts of Asia and European countries to make the national payment systems interoperable such as UPI-PayNow, PayNow-DuitNow, PayNow-PromptPay, and other global initiatives like SWIFT’s GPI, Alipay+, PAPSS, multi-CBDC projects, etc. Despite the numerous trading and remittance potentials among India and African countries, no payment system in Africa has been connected to the UPI technology bridge cross-border transactions. The report set up a roadmap that could connect UPI to the African country payment system perhaps in the interest of GhiPSS, NIBSS, SARB’s PayShap, PAPSS, etc.

December, 2023

An In-Depth Exploration of the e-Rupee Launch

The e-rupee launch is pivotal in India's digital revolution, representing a government-backed digital currency promoting financial inclusion and efficiency. This innovative digital payment solution, introduced by the Reserve Bank of India (RBI) in collaboration with the National Payments Corporation of India (NPCI), is a digital representation of the Indian rupee. The e-Rupee launch signifies a strategic step towards a cashless economy, enhancing the accessibility and transparency of transactions while targeting various socio-economic segments. Furthermore, the e-rupee launch fosters financial literacy and encourages digital adoption among India's diverse population. Its user-friendly interface and accessibility through various digital platforms aim to empower individuals, including those in remote areas, by providing a reliable and convenient financial tool. To learn more about the rupee, find the link below.

December, 2023

How are Card Networks Responding to Emerging Digital Payment Systems?

Card Networks are seeking diversification in the financial marketing ecosystem due to the fierce competition from the emerging digital wallet and mobile app payments. Mastercard and American Express have already been surpassed by providers from the digital and mobile payment competition. Apple Pay and Alipay are the second and third largest payment providers globally, respectively, having processed over $6 trillion in payments annually. The card payment industry is preparing for the future of payments with diverse strategies including partnerships, acquisitions, investments, etc., to expand its consumer market across the African continent.

November, 2023

State of Fintech Regulatory Sandbox in Africa 2023

Within the past five years, the regulatory sandbox has surged in the African region. Both central banks and capital market authorities are using the sandboxes to promote new financial and security market innovations. While most sandboxes are related to policy-oriented goals, 85% of regulatory sandbox in Africa is not policy-focused but rather to promote financial innovation. This report found that 80% of regulatory sandbox in Africa is related to digital financial services (DFS) and Fintech-focused. Also, 90% of regulatory sandbox in Africa is authorized by Central Banks and few from the non-payment authorities.

November, 2023

Financial Innovations with Open Banking APIs

Open Banking represents a paradigm shift in the financial industry, fostering innovation, competition, and improved customer experiences. At its core, Open Banking involves sharing financial data and services through standardized Application Programming Interfaces (APIs). This approach allows third-party developers and financial institutions to access and exchange customer financial information securely. Banking API integration is a crucial enabler of Open Banking, providing the technological infrastructure for seamless communication and collaboration among diverse financial entities. By breaking down traditional silos, API integration facilitates the creation of interconnected ecosystems where financial institutions, fintech startups, and other stakeholders can collaborate to deliver innovative solutions.

October, 2023

The State of Central Bank Digital Currency 2023

Agpaytech Ltd. has released a report on the State of Central Bank Digital Currency in Africa. The report discovered that Africa represents 8.5% of central banks that have announced issuing CBDC globally. In the Africa region, 32.7% (17 countries) of the central banks have publicly announced their intention to issue retail CBDC, whereas 67.3% of central banks have not shown interest or are yet to make pronouncements on their intent to explore CBDC. The report found that CBDCs have presented an excellent opportunity for central banks in Africa to pay much attention to financial technology innovations around money usage in the wholesale and retail markets. By the end of 2027, there will be about four launched CBDCs in Africa.

October, 2023

Does Electronic Levy Affect Consumers’ Payment Choice?

Based on the 2022 economic data report from the Bank of Ghana, the report examines the impact of electronic levy (e-levy) on consumers’ choice of payment in the mobile money sector. The study found that trends of total individual registered and active mobile money accounts remained unchanged. Similarly, the total registered merchants/agents and the active merchant/agents trends showed the same growth from April 2022.

October, 2023

The Vital Role of Transaction Banking in Driving Financial Inclusion

Banks are providing seamlessly transactional banking experience to their corporate partners, and individuals that facilitate day-to-day financial operation. From cash management to treasury services, India has witnessed a significant shift towards digital transactions and online banking. The government's push for a cashless economy and initiatives like Unified Payments Interface (UPI) has promoted digital transactions. The emphasis on financial inclusion and the increasing digitization of financial services drive India towards a modernized and inclusive transaction banking ecosystem.

October, 2023

State of Fintech and Regtech in Nigeria 2023

The Africans’ FinTech scene is just not big but growing fast. Nigeria remains the most active country with several FinTech deals and activities mostly in the city of Lagos, 25 deals, a 42% share of the total deals in Africa as of Q2 2023. The Nigerian FinTech industry showed immense potential returns on investment in H1 2023 largely due to spearheading policy initiatives. FinTech offerings in Nigeria go beyond payment services to full business integration, which is expected to increase more than 60% among all startups in Nigeria by 2026.

September, 2023

Commentary Note on Retail Cross-Border Remittance: Simulated U.S. CBDC & Philippines Corridor

This report provides a summary note of The Digital Dollar Project, Accenture, Western Union, and BDO Unibank, Inc Report (RCBRP) project that simulated a typical retail cross border remittance transfer using the digital dollar. The pilot study found that CBDCs may improve remittance processing by settling a peer-to-peer payment in less than ten seconds, significantly improving over most settlement mechanisms. The experiment indicated a clear potential for retail CBDCs, designed as tokenized bearer instruments and distributed to end users through banks and other regulated intermediaries, to improve cross-border remittance payments.

September, 2023

How FinTech is Turning Buy Now Pay Later (BNPL) to Save Now Buy Later

This report discovered that Fintech firms in the consumer finance market are providing unique credit access and relief to consumers in an innovative way of “Buy Now Pay Later” (BNPL). according to the report, Save Now Buy Later (SNBL) is a new payment experience where customers create savings plans to make purchases with a merchant in exchange for discounts or reward. It offers a unique opportunity for revenue growth and differentiation at a critical time for both FinTech startups and traditional banks. Three SNBL business models are discussed in the report.

September, 2023

Reshaping India’s Financial Landscape: The Journey Towards De-Dollarization

India is embarking on a transformative journey towards de-dollarization, aiming to reshape its financial landscape and reduce its reliance on the U.S. dollar. Indian government actively promotes using the rupee in international trade and finance, encouraging businesses to settle transactions in rupees rather than dollars. This approach helps reduce exchange rate risks and transaction costs, making Indian businesses more competitive globally. Furthermore, India is diversifying its foreign exchange reserves away from the dollar. Gold reserves, investments in other currencies, and developing a digital rupee are strategies to bolster financial stability and reduce exposure to dollar fluctuations.

September, 2023

Remittances & Cross-Border Payments with Digital ID in the African Region

As of 2022, the World Bank and ID4D estimated that approximately 850 million people in the world do not have an official ID, and over 90% of this total represents people living in lower-middle-income and low-income countries.

Currently, over 60% of the adult population aged 15 years and above has one form of government-recognized ID whereas less than 30% of the population have IDs that are recognized in different jurisdictions other than their home countries. Most common IDs in Africa includes birth certificate and voters’ ID which largely lacks biometric data (fingerprints, iris scans, handprints) for cross-border usage.

The ID coverage gap is largely concentrated among younger people, less educated people, rural dwellers, women and those living in poverty.

Such inconsistency and lack of regional recognition of the multiple identifications system in the African region limit cross-border financial and identification activities. The non-biometric nature of the IDs makes it incredible to share for wider usage and identification in other countries.

August, 2023

Transforming the Remittance Industry: The Power of Digital Payments

The remittance industry has significantly transformed recently, shifting significantly towards digital payments. Traditionally, remittances were predominantly made through cash-based channels, involving complex processes, high costs, and time-consuming transactions. However, technological advancements and changing consumer preferences have propelled the industry towards digital solutions, presenting numerous benefits to both senders and recipients.

Digital payments in the remittance sector offer improved speed and efficiency. With mobile applications, online platforms, and electronic transfers, remittances can now be sent and received instantly, eliminating the delays associated with traditional methods. The adoption of digital payment systems also brings enhanced transparency and security. Tracking and recording remittance transactions through digital platforms give both senders and recipients greater visibility into the payment process.

July, 2023

Invisible Banking: Finding Success for the Future of Payment

The progress in invisible banking is driven by advances in technologies such as the Internet of Things (IoT), Artificial Intelligence, Voice banking, APIs, and 5G. The future of banking will demand solutions that are more streamlined and incorporated into our daily lives. Firms or payment service providers would adopt mass personalization of daily financial and non-financial services. The future of invisible banking cannot be carried by one firm, it needs collaboration from the bank, customer, fintech, and third-party service providers.

July, 2023

The Dynamism of the Indian Banking System

The Indian banking system, renowned for its complexity and vastness, is a realm worth exploring in great detail. With its extensive network of banks, both public and private, the system plays a pivotal role in facilitating financial transactions, fostering economic growth, and ensuring the stability of the nation's economy.

The Indian banking system also encompasses specialized banks that cater to specific sectors, such as agricultural, industrial, and cooperative banks. These institutions play a crucial role in supporting the development of their respective sectors and promoting financial inclusivity across the nation.

In recent years, the Indian banking system has witnessed significant transformations driven by technological advancements and evolving customer expectations in the retail payment.

Digitization and the adoption of innovative technologies have resulted in the emergence of digital banking, mobile banking, and online payment systems, revolutionizing how banking services are accessed and delivered.

July, 2023

Neobanking Services: The Driving Force Behind Digital Payments in Nigeria

Neobanks emerged in the Nigerian financial market to provide personalized-digital services that conventional banks are not fully flexible and cater to the consumers. It is one of the new technologies that have made financial services and processes easier, and more efficient, reduced errors, improved communication, and changed how consumers access their funds. Such Neobanks activities are meeting the demands of today’s platform trading business and digital use of cash. This report presents Neobanks success factors including customer-Centric approach, seamless user experience, strong security measures, strategic partnerships, agility and adaptability, data-driven decision making, and others

June, 2023

G20 Nations Unite to Prioritize Global Economic Recovery

The G20 Summit in India in 2023 marked a significant global cooperation and decision-making milestone. The event brought together leaders from the world's largest economies, representing developed and developing nations, to address pressing global challenges and seek collaborative solutions. As the host nation, India played a crucial role in shaping the agenda and ensuring a fruitful dialogue among the G20 members. The summit provided a platform for leaders to exchange ideas, share best practices, and forge partnerships to address pressing issues that transcend national boundaries.

June, 2023

Infrastructural Pathways to Digital Payment Systems in Ghana

Ghana's payment infrastructure and emerging payment trends. Ghana’s payment system has improved significantly since 1997 when the MICR cheques were introduced and continues to evolve to meet the country's developmental needs. The current trend in Ghana’s payment systems development is driven by economic, financial, and public policy factors, a growing local ICT industry, and global trends in payment systems development. The recent innovation in the payment sector includes the GhanaPay (GhPay), GhQR Code and potential eCedi (CBDC). Ghana’s payment ecosystem has been transformed from a largely manual environment by GhIPSS, providing EFT, GhIPSS Instant Pay (GIP), e-commerce and card payment, USSD mobile money, GhQR Code, mobile apps, and internet banking.

June, 2023

The State of Cross-border Payment Systems in Africa

The state of payment models and systems in Africa has improved significantly. Policymakers, banks, and other financial institutions are collaborating to develop the right policies to connect the continent’s markets, deepen regional integration and adopt reforms that enhance the competitiveness and movement of financial flows and commodities. Africa’s growth towards cross-border payment and frictionless intercontinental trade is driven by; the new level of openness, real-time and instant payments, improved payment infrastructural system increase in fintech activities and, cross-border e-commerce models

May, 2023

Remittance FDI Inflow to India

Remittance FDI inflows provide a stable and reliable source of foreign capital. This infusion of funds supports various sectors such as infrastructure, manufacturing, services, and technology, promoting investment, innovation, and job creation. The inflows contribute to India's foreign exchange reserves, strengthening its financial stability and enhancing its capacity to meet external obligations.

Remittance FDI inflows contribute to India's balance of payments by offsetting the trade deficit. Remittance Foreign Direct Investment (FDI) inflows have significantly shaped India's economic landscape. With a vast diaspora spread across the globe, India has become one of the top recipients of remittances from non-resident Indians (NRIs) and people of Indian origin. These remittance FDI inflows play a crucial role in driving economic growth, stimulating investment, and bolstering various sectors of the Indian economy.

April, 2023

The Emergent of Vostro Accounts on De-Dollarization of Payments: Insight from BRICS, Rupee & Yuan

Central banks and financial experts in most countries are finding alternative settlement approaches without the USD by opening special vostro and nostro accounts with trade partners' home banks. These factors have led to the term “de-dollarization”, which refers to the process of substituting the USD as the most reserved and traded currency used for trading commodities and other goods and services. To create multi-currency dominance for international trade settlement, there has been an interesting connection to BRICS, the promotion of the Chinese yuan, and the Indian rupee as well as several countries agreeing to trade in local currencies. This report provides insight into the development of Vostro and Nostro accounts on the impact of the de-dollarization of payments from the perspective of BRICS, Rupee, and Yuan.

April, 2023

Payment Service Bank: What it Means For Bank-Led Mobile Payment in Nigeria

Nigeria, Africa’s largest economy is missing out on the region’s most exciting financial innovation, which is mobile money. Although Nigeria has a large unbanked population and high levels of telecommunications penetration, the mobile money experience has not yet been so successful. This is primarily due to the regulatory approach to mobile money payment services.

The Regulatory Framework for Mobile Money Services in Nigeria identified two models; thus bank-led, and nonbank-led. While the Central Bank of Nigeria recognizes the importance of Mobile Network Operators (MNOs) in the operations of mobile money services and appreciates the criticality of the infrastructure they provide, the MNOs are excluded having adverse effects in rural areas where banks or banking agents cannot extend the mobile money services.

April, 2023

The Rise of the Indian Rupee in International Trade

The Indian Rupee is one of the fastest-growing currencies in the world, having experienced a dramatic rise in value over the past decade. In the last few years, the Indian Rupee has become a significant player in international trade, with a growing presence in global markets. It is due to many factors, including India's strong economic performance, increasing global economic influence, and investment in infrastructure and technology. As the Indian Rupee gains strength, it will likely become an even more significant factor in international trade. Indian Rupee is an attractive currency for foreign investment, as its volatility is much lower than that of other emerging market currencies.

April, 2023

Can Social Media Platforms Lead Fintech in the Digital Wallet Payment System?

Digital wallet payment has grown rapidly due to the COVID-19 pandemic, growth in the e-commerce market and shifts to contactless and instant payments in the consumer finance market. Other factors contributing to the demand for digital wallets are the increased penetration of smartphones and internet accessibility worldwide. Banks and fintech are developing their digital wallet (mobile apps), collaborating with giant card companies to provide seamless and personalized retail payment services.

Meanwhile, Bigtech giants’ social media platforms are aiming to go beyond “supper social network” to that of more a “supper wallet” and looking to leverage their massive user networks, brand recognition, and UX expertise to gain a quick competitive edge in the digital wallet payment sector. This report uses Chinese social media WeChat as a case of how social media is integrating payment wallet and proving personalized financial services to millions of users worldwide. The report found that social media users prefer “Everything App” where they can manage their finance, social chats, business all in one place. Agpaytech suggest banks and fintechs should corporate with social media platforms to provide digital financial services that would improve the service experience of social media users like WeChat.

March, 2023

The Landscape of Digital Banking in the UAE

Digital banking in the UAE has grown significantly in recent years. It has become an essential part of the banking industry and is quickly becoming the preferred choice for individuals and businesses. With the help of digital banking, customers can now manage their finances and transactions more conveniently and securely. Customers can access their accounts anytime, anywhere, with the help of their mobile phones, computers, or tablets. They can perform various banking activities such as making payments, transferring funds, checking account balances, etc. The UAE is taking steps to ensure that digital banking is safe and secure for customers and is continuously investing in technology to improve its banking infrastructure.

March, 2023

Ghana’s Gold for Oil Policy & Payment Model: A Problem in Search of a Solution

The global economies are facing tough financial days due to several external and internal factors such as COVID-19, the Russia-Ukraine war, the public debt crisis, the exchange rate, and high energy prices which are directly and indirectly affecting other commodities.

To restore the current economic challenges and stabilize the price of goods and services, the government is negotiating a new policy regime where gold will be used to buy oil. The VP of the Republic of Ghana, the gold for oil policy aims to stabilize the Ghanaian cedi, keep prices of petroleum products low and to significantly reduce the persistent depreciation of Ghana currency.

Many international experts described the move as de-dollarization, whereas local energy experts call for stakeholder consultation since there is scanty information available to the public.

Agpaytech research speculates two possible approaches to achieve this policy; the direct barter and broker approach models. This report in the authors' view, examines the correlation and payment flow of Ghana’s gold for oil trade and its sustainability measures.

March, 2023

Components of the Indian Tax Regime

The Indian tax regime is a complex system designed to ensure that individuals and businesses are paying their fair share of taxes. The Government of India is continuously making efforts to simplify the tax system and reduce the burden of taxation on individuals and companies. Therefore, it has introduced the Goods and Services Tax (GST), which applies to direct and indirect taxes. GST is a single, unified tax system designed to eliminate the cascading effects of multiple taxes. In addition to GST, the Government of India has also introduced several other tax reforms to make the system simpler and more efficient. These include rationalising the tax structure, implementing advanced tax compliance, and introducing the Taxpayers' Charter. The Government has also been actively engaging with the public to ensure taxpayers understand their obligations and rights under the Indian tax regime. It will help to ensure that individuals and businesses pay their fair share of taxes, contributing to the nation's growth and development. To learn more about the Indian tax regime, click the report below.

March, 2023

Buy Now Pay Later in Africa: Is it the Right Time for Fintechs to Adopt

The idea of facilitating installment payments is not new, e-commerce and the fintech revolution have contributed significantly to transforming Buy Now Pay Later (BNPL) into what it is today. For consumers it’s a convenience through a streamlined, low-friction, integrated check-out experience, whereas for merchants is boosting conversion rates and average order value. But with the current economic crisis amidst rising public debt reaching record levels, will consumers and merchants subscribe to BNPL?

This study found that BNPL provides several benefits such as consumption relief to individuals to pay later, boosts merchant sales, revenue for Fintechs, promote eCommerce marketing and many others. This report examines the BNPL model in the African market, potential challenges, risk, timing, and its market focus.

February, 2023

Remittance and FDI Inflows: How Do Fintechs Strategize them for Financial Inclusion in Africa?

Fintech's presence in the financial landscape contributes significantly to financial inclusion worldwide. With the recent substantial increase in remittance and FDI inflows to African countries, Fintech contributes to cross-border payment and financial accessibility through remittance services and investment fund opportunities.

In this paper, Agpaytech opined that Remittances and FDI would likely improve formal financial access and inclusiveness when unbanked persons deposit their money in the financial sector and benefit from the multitudes of financial services offered by mobile transfers operators and fintech firms.

The report indicated that monies received in Africa as remittance and FDI are enough to sustain startups and Fintechs to build robust financial markets for inclusiveness.

February, 2023

Evolution of the Payment Gateway in India

The evolution of payment gateways in India has been remarkable over the past decade. From the introduction of e-wallets to the development of biometric authentication systems, the payments landscape in India has seen immense progress. This progress has allowed Indian businesses to become more competitive and has allowed consumers to pay for goods and services with greater convenience, speed, and security. As the Indian payments landscape continues to evolve, the country is sure to become a leader in the global payments space.

February, 2023

Is ChatGPT Ready to Serve Banks and Fintechs?

The chatbot market is witnessing growth due to increasing demand for messenger applications and the growing adoption of consumer analytics by various businesses globally. How then does ChatGPT make a difference and is it ready to serve Banks and Fintech? The question of how artificial intelligence can transform banking and marketing continues to attract attention from scholars.

ChatGPT technology is evolving, with a variety of contents and applications that could be useful to the banking, fintech, and marketing sector. Businesses are always looking for more ways to save money and become more efficient.

February, 2023

Overview of CBDCs Trend, Visions & Challenges

Central Bank Digital Currencies (CBDCs) are digital versions of fiat currencies issued and backed by central banks. In recent years, the growing popularity of cryptocurrencies and digital payments has prompted central banks worldwide to explore the possibility of issuing their digital currencies. CBDCs aim to provide a safer, more efficient and accessible alternative to traditional physical currencies and payment systems while preserving central bank control over the money supply and financial stability. This report will examine the current state of CBDC development, Improvement and explore the potential benefits and challenges of CBDCs.

January, 2023

Is Inward Remittances Better than FDI Inflows to Africa?

This report examines the relationship and inflows of foreign direct investment (FDI) and remittances as a percent of gross domestic product (GDP) in African countries. In terms of FDI, the report discovered that Africa received the least value of FDI inflows of $47 billion in 2019, and $40 billion in 2020. This accounts for a 14.89% decrease in foreign investment in Africa.Agpaytech analysis revealed that most African countries receive more remittances as compared to FDI. We found that 23 countries had received higher remittances than FDI as a percent of GDP. The number of countries which had received more FDI than remittances were 12. Moreover, 13 countries had unstable FDI or remittances flows.

January, 2023

Is e-RUPI the Future of Payment in India?

e-RUPI is a contactless payment mechanism developed in coordination with the DFS (Department of Financial Services) and NHA (National Health Authority) powered by the National Payments Corporation of India (NPCI). This seamless one-time payment mechanism enables users to redeem the voucher without a card, digital payments app or internet banking access at the merchants accepting UPI e-Prepaid Vouchers. The e-RUPI would be shared with the beneficiaries for a specific purpose or activity by organizations via SMS or QR code. This report provides an in-depth analysis of the e-RUPI, use cases, benefits and why it is the future of payment in India.

December, 2022

2022 in Retrospective: 12 Key Financial Insights

The financial landscape worldwide has experienced numerous financial breakthroughs especially after the post COVID-19 era. Central Banks have been more active than before, Fintechs and startups surge up, innovative financial models and instant payment in the consumer finance market is on the rise globally. Agpaytech presents 12 key financial innovations that were most talked about worldwide.

December, 2022

The Advent of Neo-Banks in the U.S

A neo-bank is a mobile, online and tech-based bank offering financial and digital services and mostly has no physical branches. These banks provide services like lending, investments and saving accounts and credit cards like a traditional bank: however, they operate entirely online. The U.S. neo-bank ecosystem competes well with its global peers; seven out of the top fifteen Neo-Banks worldwide are headquartered in the U.S.

December, 2022

Web 3.0 Technologies: How will it Enhance Open Banking

The quest for reliable data to provide personalized open finance services to consumers is on the rise. With this, technological organizations are gearing up to adopt Web 3.0 technologies.

The fundamental idea behind Web 3.0 is to create a decentralized version of the Internet by removing the dominance of the centralized power of Web 2.0 giants and giving control back to users. In this report, Agpaytech presents the Web 3.0 technologies that influence open banking initiatives. It includes the Web3 technology applications such as blockchain technology, decentralized autonomous organizations (DAOs) and smart contracts.

The report highlights the impact of Web 3.0 on Fintechs, data access, and adoption challenges in the financial market. It also discusses how will Web 3.0 will improve the Open Banking concept as well as drive open finance model for Fintechs.

December, 2022

RTGS In Africa

Real Time Gross Settlement (RTGS) has improved the African payment system, reducing delays and cost of bulk transactions as well as promoting instant payment in the retail payment sector. Also, the financial market infrastructure (FMI) for large or high-value payments has grown significantly over the years in Africa. AGPAYTECH conducted a study on the availability of RTGS in African countries. We found that 45 African countries have real-time gross settlement (RTGS) systems operationalized by their respective central banks. Secondly, we found no information on the availability of RTGS for the Central Bank of Comoros, Central Bank of Djibouti, Bank of Eritrea, Central Bank of Mauritania, and National Bank of São Tomé and Príncipe. Moreover, each regional bloc or monetary union has regional RTGS to facilitate interbank transactions and trade settlements. In most countries, RTGS has been deployed alongside the central securities depositories (CSDs), securities settlement systems (SSSs), central counterparties (CCPs), and trade repositories (TRs).

November, 2022

The Indian Unified Payment Interface (UPI): Growth, Potentials And Challenges

Indian unified payment interface is a real-time payment system that helps instant funds transfer between two bank accounts. The volume of real-time payment (RTP) rails is on a steep growth trajectory, and in 2022 the magnitude of digital payment transaction in India crossed the 45 billion number mark. This report covers the growth of UPI, its current trends, future and challenges.

November, 2022

Is Ghana Ready For Open Banking?

The open banking (OB) initiative is changing traditional banks and Fintechs' collaboration by repositioning traditional banks as players in the digital revolution. The OB approach permits third-party access to customer financial data from banks through the use of application programming interfaces (APIs) to provide seamless and personalized services. The number of open banking users worldwide is expected to grow at an average annual rate of nearly 50% between 2020 and 2024, with the European market being the largest.

This study explores the readiness of Ghana in adopting Open Banking. This report covers the key conditions for the effective implementation of Open Banking in Ghana. We examine the prerequisite of Open Banking from the perspective of governance, market, infrastructure, fintech, and consumers’ readiness. The report indicated that Ghana has all that it takes to implement Open Banking such as open data initiative (regulatory sandbox), infrastructure (GhIPSS), banks and fintech readiness.

October, 2022

Banking Beyond Banks: How Is Africa Embracing Open Banking?

Several countries worldwide are leading the development and regulation of open banking (OB). The notable countries are EU, UK, India, Canada. Although no African country has enforced a clear legislative rule for open banking, there are still promising developments in several countries. Currently, Nigeria, South Africa, Rwanda, Ghana and Kenya are preparing grounds for the OB initiative. However, only Nigeria has issued a regulatory approach to adopt the OB in its payment landscape.

In Africa, Open Banking has the potential to transform financial services, increase competition, broaden service offerings, support innovation, and improve convenience and customer experience. Regulators and banks are warming up to the idea of sharing customer data with Fintechs. In this report, we examined the development of open banking worldwide and its growth characteristics by region. Secondly, the report discussed the open banking ecosystem and open platform initiatives in Africa. Lastly, the report highlighted the policy motivations, opportunities, and potential challenges of open banking.

Agpaytech suggests that following measures to improve OB adoption in Africa

- Clear regulations and legislation on data sharing and management

- Clear consumer consent guidelines

- Set standards for APIs

- Open engagement forums with stakeholders

October, 2022

Open Banking In UK’s Financial Ecosystem

Open banking is an insight into how retail banking will transform in the future. Currently, it is demonstrating a fast-growing technological evolution that is gaining significant traction with consumers.This form of banking will change how millions of customers and small businesses presently conduct business with their banks and make the interaction far more effortless.

Open Banking works on the PSD2 principle that encourages banks to securely share their customer's bank and card transaction data with trusted third parties who can provide end users with applications and services that save time and money. Open Banking has started to facilitate the development of innovative payment services that have the potential to compete with cards as a payment method and act as a substitute for direct debits.

This report covers the development of the open banking ecosystem in the UK and the factors shaping its evolution.

October, 2022

The e-HKD Journey

The Hong Kong Monetary Authority (HKMA) announced in June 2021, under the “Fintech 2025” strategy, that it would embark on an rCBDC project, Project e-HKD. This multilateral project has now entered a pilot phase and has been well recognized by the international financial community. The HKMA will therefore start work to lay the foundations for, and conduct in-depth studies and pilots on, the implementation and application of rCBDC

September, 2022

Dedollarisation of Global Energy Trading: Implication of Russia's Request for Payment in Rubels

This report provides insight into Russia's request for payment of energy in rubles from the “unfriendly countries”. First, we examine the paradigm shift of Western countries' reliance on Russia's energy since Russia’s invasion of Ukraine on 24 February 2022.

Secondly, the report explores the implications of SWIFT disconnection and sanction of the Russian Central Bank, how it would affect payment models, and the new payment approach to bypass the sanctions.

The report found that the new Russian payment system requires foreign importers to deposit euros or dollars into an account at the private Russian bank called Gazprombank, which is exempted from the SWIFT disconnection. Gazprombank used the dollars or euros received as collateral to get rubel from the Central Bank of Russia and then deposited the rubels in the importer’s account to pay for Gazprom energy.

Can the Central Bank of Russia access the deposited dollars? Read the full report below

September, 2022

The Indian Unified Payment Interface - UPI : Trends, Growth, Future And Challenges

Indian Unified payment interface is a real-time payment system that helps instant funds transfer between two bank accounts. The volume of real-time payment (RTP) rails is on a steep growth trajectory, and in 2022 the magnitude of digital payment transaction in India crossed the 45 billion number mark. This report covers the growth of UPI, its current trends, future and challenges.

September, 2022

Potential U.S. CBDC Design Features

A Summary of U.S Treasury Department Report

This report reviews the design choices for a potential U.S. Central Bank Digital Currency (CBDC) in the context of public policy considerations related to building the future of money and payments, supporting U.S. global financial leadership, and advancing financial inclusion and equity, whiles minimizing risks.

The report covers the core features of the CBDC the type, payment features, account functionalities, intermediaries, architectural designs, and security concerns.

While the current U.S. system of money and payments has significant strengths, the United States also needs to continue to innovate in support of its policy objectives.

The U.S objectives center around themes of developing a future system of money and payments that promote U.S. values, fosters inclusion, and minimizes risks for financial inclusion.

September, 2022

Consumers and Payments Choice in the USA


In the US payment market, merchants or retailers present consumers with several payment options, including cash, credit card, debit card, prepaid card, mobile payment app, or check.

It covers the Bank of England's (BoE) workings with Pay.UK to establish a common ISO20022-based messaging standard for future payment communications. This report encapsulates the new and faster payment system BoE is developing.

Based on the US Treasury Report (2022), Agpaytech discovered that there is a constant decline in cash for payment by consumers in the US, whereas debit card keeps increasing since 2016, and remains the most used payment choice by consumers as of 2021. Besides, the use of credit cards is growing faster and is very close to a debit card as a means of payment.

The survey outcome by the Federal Reserve Bank of San Francisco indicates that as household income increases, they tend to use less cash as a payment instrument, and use more credit cards. This shows how the consumers' income is changing the payment instrument in the USA.


The decision to use cash, especially for the lower household income group, could be attributed to the transaction cost or fees.

This report hinted that consumers’ payment choice is not static over time in the US and card usage remains higher.

This serves as an opportunity for Fintechs, bigtechs, policy-makers, and central banks to advise mechanisms to lower the cost of electronic transactions, provide incentives to households with fewer income levels, and find ways to bring all unbanked households to the financial market sector.

September, 2022

The U.K. Payments Market Landscape

Technology plays a crucial role in the payment industry and is working effectively towards making the payments ecosystem faster, robust and more reliable. This report analysis the UK payment system and discusses a new form of digital money. It further analysis the traditional ways of banking and money transfer activities.

It covers the Bank of England's (BoE) workings with Pay.UK to establish a common ISO20022-based messaging standard for future payment communications. This report encapsulates the new and faster payment system BoE is developing.

September, 2022

Disrupting the Old-School Banking Style: How Nigeria is Adapting to Open Banking

Nigeria remains the first African country to issue regulatory guidelines to operate the Open Banking platform on February 17th, 2021. Open Banking requires customers to permit third-party providers (TPP) to use API to access their personal data, account details and transaction history held with their banks and provide real-time, consumer-friendly financial products and services that meet users’ needs.

The CBN has outlined the customer information that could be accessed, guidelines for APIs, Fintechs, Banks and consumer consent management. While the potentials of Open Banking are numerous in the Nigerian financial market, the CBN never ruled out risks or attacks on Fintech, APIs, and users.

The Open Banking initiative is expected to reduce the cost of transaction fees, provide quick and easy access to personalized tools and products, easy access to a financial account, and demonstrate your creditworthiness more easily to loan providers by having all your information in one place.

September, 2022

Ghana’s E-levy Missed Target, Received Just 6.41% For Quarter 2

The Ministry of Finance fiscal data released in July has shown a substantial deficit in revenue from the debatable electronic transfer levy. The E-levy was initially projected to rake in ¢6.9 billion by the end of 2022 of which it was revised to ¢4.5 billion.

Currently, the data indicated revenue received in May and June was 8.09% and 12.99% of the targeted amount. The total amount raised as of the second quarter of 2022 stood at ¢93,728,578, which is just 6.41% of the estimated budget of ¢1,462,311,113. This means that a huge amount of ¢1,368,582,535 was missed.


Generally, the E-levy sparked widespread anger among a section of Ghanaians right from its pronouncement by the Finance Minister. Mobile money agents and subscribers agitated this could impact people’s income, and reduce the use of mobile money payments. This has resulted in missing all targets in the revenue mobilization as far as the E-levy is concerned.

With the preparation to launch eCedis, and the promotion of digitalization in Ghana as key financial inclusion agenda, a further slash of the levy to 1% or 0.75% would reduce the negative impressions and change consumers’ perception of e-money. Besides, there is an urgent need for public education on the exclusion and inclusion criteria of the E-levy on mobile money payments.

August, 2022

Is Central Bank Digital Currency A Threat To Cryptocurrency?

As most central banks across the world aimed to issue central bank digital currency (CBDC) often called fiat money, other investors in the crypto market were worried about the consequences it would have on the business environment. This seems like a fierce competition between private bigtechs, crypto miners and central banks, the consumer market is skeptical about the efficacy of central banks to issue digital currency as a means of payment in the consumer financial retail market. Key Themes : Have central banks misplaced priority to entering the consumer fintech market by providing retail CBDC? Or its high time CBDCs represented the digitized version of a nation’s physical cash? Do CBDCs pose a threat to the cryptocurrency market by providing a legal framework and securing users' money with an asset that is problematic in the open cryptocurrency communities? The report acknowledged the significance of cryptocurrency in providing commodity money for wider global transactions and eliminating financial institutions from the credit system. The paper recommends that swift monetary policy is required to establish equilibrium grounds and address cryptocurrency and CBDC disparity.

July, 2022

Development and Regulation of Remittance to India: This paper explores Indian remittances from the GCC region, its process, patterns, and Regulations.

India is the largest remittance-receiving country in the world, and this is an essential source of money for a large part of the population. A considerable percentage of the labour workforce in Gulf co-operation countries originates from India; thus, this region is one of the largest sources of remittances to the country. However, there is a noteworthy change in sending pattern of money being sent back home, where innovation leading to digitalisation in the payments industry has changed the modes of transaction and has made the process very convenient.

July, 2022

Currency Dichotomy and Cross-Border Payment Analysis: A Step Towards Integrated Payment Interface For Africa

While Scholars have identified several challenges in cross-border payments such as expensive, slow, and not transparent, with more disconnected layers, etc., few studies focused on the impact of diverse currencies in the same region as well as other regions on cross-border transactions. With several monetary zones in Africa coupled with over 42 currencies in circulation, the report explores how cross-border payments occur within and across regions based on cross-currencies. Moreover, we expanded the concept of building regional payment areas as championed by Arner et al. (2022) and proposed a comprehensive policy approach to enhance cross-border transactions in Africa.

June, 2022

Cryptocurrency: How are Indian investors and the Government responding to this disruptive form of digital money?

In India, cryptocurrencies are not illegal, yet there isn't a regulatory framework to govern such virtual assets. The government had constituted an Inter-Ministerial Committee (IMC) on November 2, 2017, to study such digital currencies. However, it believes that cryptocurrency has the potential to be misused, and it remains highly volatile for retail investors. And this is why cryptocurrencies are something that regulators are not welcoming with open arms. If you want to gain a better understanding of the crypto market in India or the challenges it faces, please click the link below.

June, 2022

Regulating Remittance Development And High Cost In Africa: A Framework For Policymakers

The cost of sending money to Africa surpasses all regions in the world. According to the World Bank, sending $200 costs an average of 8.2% of the transaction compared to South Asia, which is 4.6%. While the remittance charges on formal money transfers are higher, migrants have adapted to informal ways through friends, unregistered remittance service providers, currency swapping, and “when I visit” techniques to send money home. For this reason, coupled with Covid-19, the aggregate remittance inflows to Africa declined by a sharp 14.1% during 2020 (Word Bank Group, 2021). This report investigates the factors that account for the high cost of remittance charges and provides holistic guidelines to reduce the charges. The report includes the global and regional remittance costs. Besides, the paper provided an overview of the remittances inflow pattern in Africa by region.

June, 2022

The Indian Payment Landscape: What Does It Look Like Today?

India's financial inclusion has increased, both in terms of cash and digital ecosystem. Its digital payments infrastructure development has aided in strengthening the economy. The infrastructure of UPI and e-wallets allow people to migrate to a digitalised and cashless society. The Government has undertaken several robust initiatives to empower the economy digitally. And it is doing so by including people financially and strengthening both the cash and digital payment options. However, the Payments Infrastructure requires specific policy considerations to provide the stakeholders with greater clarity and allow them to envisage better.

May, 2022

An Overview of Payment Systems in Africa

The payment systems in Africa have been revolutionised, from the barter trade system to modern digital currencies and mobile payments. The continent aims to improve its cash-dominated economy, and several reforms and financial technology approaches have been implemented both at the country and regional levels. The report provides details on the payment system available in each region (West, North, South, East, and Central Africa) and the promising opportunities for financial experts. It is interesting to know the major payment systems in Africa, each region and country; obstacles to achieving financial inclusion; and the need for a unified payment facility.

May, 2022

Overview of Eastern Caribbean Central Bank Digital Currency: DCash

In March 2021, the Eastern Caribbean Central Bank launched the Eastern Caribbean dollar(DCash) digital version as a legal tender. The ECCB partnered with several local and regional businesses and consumers to ensure that this form of currency is widely distributed and accepted. DCash was initially launched in Antigua and Barbuda, Grenada, Saint Christopher (St Kitts), Nevis, and Saint Lucia. It was introduced to ensure that transactions are more straightforward, transparent, and faster. To know more, please read our research report by clicking the link below.

May, 2022

A New Levy on Mobile Money Payments in Ghana: Impact on the Financial Digitalization Process

Ghana E-Levy: Ghanaians start paying a 1.5% tax on electronic transactions from May 1. The levy applies to mobile electronic transaction that exceeds GH¢ 100. The Electronic Transfer Levy Act 2022 (Act 1075), assented into law and gazette on 31 March 2022, aims to widen the tax net and rope in the informal sector. The Ghana Revenue Authority (GRA) is in charge of the e-levy collection. Now, let’s explore the new charges, inclusions, and exclusions of the e-levy and its impact on Ghana’s digitalisation drive.

Apr, 2022

What can Least Develop Countries (LDCs) Learn from China's CBDC Project

The Chinese e-CNY is currently grasping global attention due to its widespread use and piloting at the 2022 Beijing Olympics. Besides, the Peoples' Bank of China (PBOC) is pushing for global dominance and the use of e-CNY by partnering with neighbouring countries to experiment with a robust digital cross-border payment system. WeChat Pay has embraced the system, making it optional to pay with e-CNY or WeChat Pay.

Apr, 2022

Blockchain Technology: The New Revolution in Fintech Industry

One of the most significant contributions of the Cryptocurrency boom is the Distributed Ledger Technology (DLT) that powers it, commonly known as the Blockchain. This technology has the potential to become the backbone of the Fintech Industry. Blockchain frameworks are built on several principles, such as various rules of participation, network, specifications, and mechanisms. Some are open, permissionless networks, and some are closed design frameworks; individual use cases and utility are used to determine it.

Mar, 2022

The Paradigm Shift of Digital Currency (CBDC) & Its Technology Providers

The Central Bank Digital Currency (CBDC) race has witnessed tremendous participation from many countries globally. China and Nigeria are leading the CBDC implementation in Asia and Africa. Meanwhile, Technology Service Providers are working restlessly to provide sophisticated technical support to CBDCs. This report gives a clear picture of the CBDC progress of each continent and the fintech companies providing the technology services.

Mar, 2022

Comparative analysis: eCedi and mobile money in Ghana

This report highlights Ghana’s backed digital currency (eCedi) and Mobile Money (MM) Payment in Ghana. It focused on the global perspective of mobile money and Central Bank Digital Currency (CBDC), their associated features, design models, and potential implications and interrelationships in achieving cash lite economy.

Feb, 2022

e-Naira: Africa’s first central bank digital currency

The Nigeria Central Bank partnered with Bitt Inc. to design and launch eNaira, Africa’s first CBDC. The eNaira aims to provide a fast and resilient payment system whiles broadening the financial inclusion.

Feb, 2022

Ghana’s appetite for digital currency (eCedi)

Africa's appetite for digital currencies is growing expressively. While Ghana is piloting its central bank digital currency (eCedi), Nigeria has launched its e-Naira. This paper provides an expectation of the architectural insights of eCedi.

Sept 2021

Multiple CBDC Arrangements are Working to Enhance the Payment System.

In the Domestic Financial Ecosystem, many Central Banks have managed significant inroads in understanding the frameworks for introducing Central Bank Digital Currencies

Oct, 2021

Can Ethereum Change The World As We Know It?

A technology that has refused to digital money, global payments, and applications is known as Ethereum. The Ethereum community has led to a booming digital economy

Nov, 2021

Infrastructure costs may reduce between US$15 billion and US$20 billion by 2022? Yes says Blockchain

Blockchain is one of the most promising technologies that is immutable, reliable and operates a lot quicker and in affordable rates.

Dec, 2021

The Bahamas Sand Dollar - World's First Central Bank Digital Currency(CBDC)

The First Country globally to launch its central bank digital currency (cbdc),The sand of the primary objective is to combat the financial problems originating from natural disaster

We use cookies to improve your experience
Please click "Accept" to help us improve its usefulness with additional cookies.
Learn about our use of cookies Cookie Policy