Microsoft To Launch New Africa Focused e-Commerce Portal

Written by Kevin Mwanza

Nov 11, 2014

At AfricaCom 2014, Microsoft 4Afrika and Skrill have revealed their alliance in order to launch a new e-commerce portal. By integrating with mobile network operators (MNOs), the portal enables Africans to use their mobile wallets to buy from global internet brands, access free educational content and use Microsoft software.

According to both parties, this new form of partnership between mobile payment systems, network operators and merchants is the first of its kind in Africa. While launched at Africacom, the portal will be fully live by December 2014.

Nilesh Pandya, SVP of emerging markets at Skrill, commented: “Africa is urbanising faster than any other continent, with cities enjoying strong levels of wireless and data coverage. It has the world’s most youthful populations and we know that it is the younger generations that are often first to embrace technology. Disposable incomes are rapidly increasing, making discretionary spend on e-commerce an immediate reality. These conditions deliver the perfect storm for a massive surge in consumer demand for digital payments.”

“However, a high percentage of Africans remain unbanked and so have no means of paying for global online brands. Even banked Africans often find that global online merchants are reluctant to serve these markets for credit and debit card transactions due to perceived fraud risks.”

According to both parties, Skrill enables users to make payments instantly, cost effectively and securely. Using mobile wallets, users can buy products and services from Skrill’s extensive global network of merchants, including video on demand business iROKOtv, music download and streaming business Spinlet and a range of social gaming providers.

By logging into the portal, consumers are also given access to special product offers and discounts on goods and services exclusively available through this purchase route and their mobile provider.

E-commerce transactions do not incur any additional cost for the consumer and specific fees charged to merchants, relating to this market have been determined by Skrill to reflect the opportunity for growth, tempered with the challenges inherent in a new market. By partnering with merchants, Skrill can ensure that their products and services are available in some of the fastest growing markets in the world.