Bitcoin trading continues to grow in popularity globally, especially in Africa, at a stunning pace. In this article, we highlight the popular payment methods for buying bitcoin in Africa.
Bank Transfer
Bank transfer is the most popular payment method for buying bitcoin in Africa. Even though Africa has a largely unbanked population, most people purchasing cryptocurrency in Africa have bank accounts. This can be seen through the payment methods accepted on major exchanges in top markets like Nigeria and South Africa.
Most exchanges have bank transfers as the sole or primary method of making deposits. On P2P platforms like Paxful, most users also opt for bank transfers.
Mobile Money (MTN Mobile Money, MPESA)
Mobile money is the go-to payment system for most countries in East Africa and other parts of Africa. Top bitcoin trading markets like Kenya, Ghana, and Uganda are known for using mobile money as a payment method.
In most East African countries, MPESA is the most popular mobile money platform, while MTN Mobile Money trends in countries like Ghana.
Other mobile money operators on the continent include Vodafone Cash (countries without Safaricom) and Airtel Money. In 2018, according to a report published by GSMA, $1.3billion was processed in mobile money transactions daily worldwide. In that same report, Sub-Saharan Africa had the highest percentage of registrations at 45.6 percent.
At the time of writing, most countries where mobile money is widespread use peer-to-peer marketplaces like Paxful to trade bitcoin.
Compared to bank payments, mobile money payments are faster. For instance, when buying bitcoin, on Paxful, all you need to do is get the mobile number of the seller, send the payment, and the bitcoin will be released to you.
Gift Cards
Though risky, trading bitcoin in Africa with gift cards is another popular payment method. There are several gift cards traders use to buy bitcoin. Some of the popular ones include Amazon gift cards, iTunes gift cards, eBay gift cards, OneVanilla cards, and Steam wallet gift cards.
At the time of writing, Paxful is the only major P2P platform that supports bitcoin trading with gift cards. To stamp out the fraud that is frequently attempted with trading gift cards for bitcoin, there are very strict guidelines buyers have to follow.
On Paxful, there are general rules to follow:
- You have to provide proof of purchase.
- No brokering of gift cards.
- Dispute times for gift card trades are longer.
- There is zero tolerance for fraud; any attempt to outsmart the system will get you banned.
Chipper Cash
Chipper Cash is another popular payment method in Africa. The payment application built by Critical Ideas, Inc. It is available in Kenya, Ghana, Rwanda, Tanzania, Nigeria, Uganda, and South Africa.
Chipper Cash provides unique utility for traders. Since the application is available in seven countries, traders can sell their bitcoin to buyers from different markets and receive instant payments.
Further, using Chipper Cash for payments inside your country comes with zero fees. The payment app is available on Android, iOS, and the web.
PayPal
Finally, PayPal is the 5th payment method on our list. PayPal is not the most African friendly payment method as top bitcoin markets like Nigeria and Ghana do not have full access to the platform.
Regardless, people still use PayPal to receive payments from people outside of Africa. Buying bitcoin with PayPal as a payment method makes it easier for users to withdraw their money.
Other popular payment methods that deserve an honorable mention are Western Union and Perfect Money.
How Can I Buy Bitcoin With These Payment Methods?
You can buy bitcoin with any of the payment methods mentioned in this article on Paxful. The largest P2P marketplace supports 337 payment options, including bank transfer, mobile money, chipper cash, gift cards, and PayPal.
Trading on Paxful is possible in most parts of the world. Create an account and verify your identity to get started. After, select your currency and enter the amount you want to spend on purchasing bitcoin.
You can select from any of the 337 payment options to find buyers who are willing to sell bitcoin to you. Select an offer, initiate the trade, make payments, and click ‘Paid’. The seller will confirm receipt, and the bitcoin will be released to your wallet.
The post Popular Payment Methods For Buying Bitcoin in Africa appeared first on BlockNewsAfrica.
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