Africa's Largest Online Marketplace Bidorbuy Adds Bitcoin Payments
To remove the monetary security issues a lot of African e-commerce users have suffered from, Bidorbuy, Africa`s largest online market, started accepting Bitcoin payments March 3. The integration of Bitcoin alleviates e-commerce platforms from storing sensitive monetary data on their local servers, minimizing the risk of a data breach and leak of personal user info. By supplying Bitcoin as one of its primary payment methods, Bidorbuy intends to lead the development of the e-commerce industry in Kenya and South Africa.
Bidorbuy has more than 700,000 products noted on its online marketplace and creates more than 30 million page views per month. It is the largest corporation in the South African and Kenyan e-commerce market by market share and the size of user base.
The e-commerce market of Kenya is growing at a rapid speed. According to the Communications Authority of Kenya, the data/Internet market in the country has grown greatly since 2014, due to the increase in mobile phone adoption rate and speed of bandwidth Internet connection across Africa.
All sub-categories of data/Internet service demonstrated growth apart from the terrestrial wireless service which tape-recorded a drop in the number of memberships throughout the quarter. This was as a result of the on-going migration of wireless customers to fiber network by some of the significant data/Internet carriers. Development of new markets such as e-Commerce will present a prime opportunity for the market making a turnaround and begin to tape growth as it provides physical delivery services for online deals, said the Communications Authority of Kenya.
The country`s e-commerce platforms, consisting of the popular OLX online market, have actually experienced a huge development momentum in Africa. OLX Kenya manager Peter Ndiangui says the establishment of stable Internet connections and the introduction of inexpensive smartphones led the African e-commerce markets to accomplish significant turning points over the previous year, particularly day-to-day purchase volumes, market share over conventional markets such as the retail market and the number of recently signed up members on online marketplaces.
The biggest motorist is the access to smartphones. Smartphones have actually become more affordable, and Internet access has actually spread with broadband spreading much more broader, said OLX Kenya Manager Peter Ndiangui.
Visa South Africa General Manager JabuBasopo explains that an increasing number of e-commerce platform users are starting to purchase more airline tickets and clothes online to get rid of the trouble of going to retail shops or travel agencies at traffic heavy hours.
If we look at the trends, the leading three areas that are growing are electronic devices, fashion and airlines. Each market differs. In some markets you d see most likely the airlines being number 1 [growing area], said Visa South Africa General Manager JabuBasopo.
Despite the rapidly growing customers of numerous e-commerce platforms, one major concern with Kenya and other African nations online markets that is limiting the prospective growth of the e-commerce market throughout Africa is bad monetary facilities and vulnerability of credit card payments.
Kenya s leading online electronic devices marketplace Kilimall marketing manager Charles Mungai states a lot of users of e-commerce platforms have actually had their sensitive monetary info and credit card data leaked over the previous couple of years. Since e-commerce platforms manage centralized local servers or databases of delicate user information and monetary information, users credit card information are vulnerable to hacking attacks and information breaches. If a hacker or a group of hackers gain access to e-commerce platforms servers, user’s financial data will undoubtedly become leaked.
A great deal of people has actually got themselves into extremely nasty scenarios because of issues with credit cards, scams and financial insecurity. You give credit card info on a platform that was not really secure and someone takes that details, stated Charles Mungai, Marketing Manager of Kilimall.The boost in financial scams and consumer insecurity associated with charge card and traditional means of payment have led a substantial part of Kenya s population to refrain from utilizing online payment tools in purchasing products online. By integrating Bitcoin into its online platform, Bidorbuy intends to initiate a trend back toward e-commerce.