Travel is one of the continent’s most thriving industries with large values in the Gross Domestic Product and generating millions of employment opportunities. However, the industry has constraints that hinder its optimal optimization, one of which is the issue of traditional payment structures. During the just-ended Africa Bitcoin Conference in Nairobi, the discussion went further on the possibilities of new payment systems in a variety of fields. One of them being tourism and the use of USSD-based tools.
Mobile payment tools integrated with banking systems are increasingly becoming appropriate. The USSD-based tools are turning out to be very revolutionary. These technologies make it easier for tourists to transact without a local SIM card or internet connection.
Despite advancements in technology, Africa remains a challenging place for tourists when it comes to payments. Most use costly international credit cards due to high foreign charges and adverse exchange rates. Others experience cash challenges since there are few ATMs, especially in rural areas. In addition, mobile money which is popular in almost all African countries. One has to use a local SIM card hence locking them out in the most preferred means of payment within the region.
USSD-Based Payment Systems: The Tourism Game-Changer
USSD [Unstructured Supplementary Service Data] technology presents a social solution to the problem. It works with any internet-enabled mobile device and doesn’t require internet connectivity which is good for Africa’s diverse structure. This is because USSD payment solutions when synchronised into the ecosystem of tourist-related markets. For example hotels, restaurants, local markets, and tourist attractions allow visitors to make secure payments on the fly.
For instance, a tourist who is at the Maasai mara in Kenya can buy hand-crafted souvenirs directly from the artist using the USSD code. They don’t need cash or even a local mobile money solution. Likewise, payments for using the services of a safari operator can also be made easy. Thus eradicating problems like the exchange of currencies or card processing issues.
The potential of such solutions was recently mentioned during the conference when it came to the issue of the lack of access to financial services. USSD technology and the future of the African continent in the provision of financial services are consistent with the general African vision of integrating payment systems to boost economic inclusion.
Efficient integrated payment systems do not merely appear as additional bonuses: they are engines for development. Besides, these systems help the user to visit more points of interest and spend more. They stimulate an active focus on direct spending on local points of interest. The reverberation extends to employment, from the hotel employees up to the craft sellers. Hence, increasing the social-economic multiplier/effects of tourism.
Integrated payment systems are more traveller-friendly, making Africa a hub of innovative tourism. Picture a tourist in Cape Town/SA today and tomorrow in Zanzibar/Tanzania using a single USSD code without worrying about how to make payments. By so doing, the experience generated not only improves the tourist’s experience but also advances regional integration and cooperation.
The Road Ahead
Thus, integrated payment systems can only develop if the government, telecom operators, and financial institutions act as one team. Instead, policies should actively promote the growth of systems that process cross-border payments efficiently and at low cost.
Block, Inc, the global technology company focused on financial services, played a pivotal role at the conference by challenging developers to create innovative payment solutions using tbDEX, its open-source money protocol. Through a TBD hackathon, Block, Inc. emphasized the importance of regulatory frameworks that support innovation as a driving force behind advancements in financial technologies.
The combination of the USSD type of payment system and the connectivity of people through mobile phones means that the potential of unlocking tourism for Africa is enormous for growth and development. Because they allow tourists to pay as the locals do, these systems enhance the attractiveness, viability, and profitability of travel within the continent. As was evidenced at the Africa Bitcoin Conference, the future of African tourism lies in the use of advanced technology.
