Digital industry players say transaction costs remain major challenge

Digital industry players have raised concerns about how transaction costs remain a major challenge to the current evolving digital landscape.

During the Digital and Technology Week 2023 held last week, sector players said despite the digital advancements in the country, there is persistent dominance of cash transactions due to costs associated with mobile money transactions and system interoperability challenges.

Flutterwave Vice President Leon ="https://www.standardmedia.co.ke/business/sci-tech/article/2001486419/nairobi-to-host-8th-edition-of-digital-and-technology-week">Kiptum said as e-commerce< continues to surge, consumers are voicing a strong preference for streamlined and convenient payment solutions.

"Despite digital growth, cash remains prevalent due to transaction costs and interoperability challenges in mobile money systems," Kiptum said.

He called for a reevaluation of the cost model for sending money, proposing a fee-free approach as a basic necessity.

Kiptum’s sentiments were echoed by Go Gaga Experiential Co-Founder Rita Njuguna who said many consumers are gravitating towards faster, safer, and more accessible payment options.

She said the younger generation which is tech-savvy seeks swift and secure payment methods.

Other key topics during the conference included the ascent of Artificial Intelligence (AI), Cloud Technology, and Cyber Security, underscoring their pivotal roles in Africa's digital transformation.

Douglas Njenga, Director of Regulatory Affairs and Special Projects for the WIOCC Group said investing in cloud infrastructure is pivotal for Africa's future.

According to him, cloud technology can unlock immense potential, paving the way for prosperity.

Regarding Data Security, Snehar Shah, ="https://www.standardmedia.co.ke/national/article/2001479572/counties-urged-to-embrace-digital-changes">CEO of IX Africa<, stressed the necessity for proactive measures to safeguard information systems and data.

The conference also delved into the symbiotic relationship between humanity and AI with Evelyn Nyaruai from Belva Digital, a Digital Transformation Partner, emphasising AI as an ally rather than a competition.

"AI isn't our competition, it enhances our abilities, enabling us to achieve extraordinary things," Nyaruai noted.

The three-day Digital and Technology Week, hosted by Go Gaga Experiential, acted as a pivotal platform for unveiling emerging trends and driving growth in the digital sector.

The event brought together leaders from Corporates, Agencies, Government, Media, and Technology companies, fostering collaborative discussions on the ever-evolving digital landscape.