Payment systems are the backbone of online gambling, and in Africa, cashless channels have enabled the industry’s boom. Here we analyse country-by-country usage of payment methods – mobile money, bank cards, e-wallets, crypto, vouchers – and highlight key partnerships and emerging trends:
Mobile money – The reigning champion:
In most of Africa (especially East, Central and parts of West Africa), mobile money services are the primary way users deposit and withdraw on betting platforms. These are phone-based wallets managed by telecom companies. Examples:
- Kenya: M-Pesa (Safaricom) – over 90% of online bets use M-Pesa for payments. Integration is seamless: Users transfer from M-Pesa to the betting site’s paybill number and vice versa. Low transaction fees and ubiquity make it ideal.
- Tanzania: M-Pesa, Airtel Money, Tigo Pesa – collectively used by the majority. ~45% of adults had mobile money accounts. Bettors can use USSD menus of these wallets to place bets directly.
- Uganda: MTN Mobile Money, Airtel Money – similar dominance. Operators often provide shortcodes for each to deposit/withdraw. As internet is low, USSD via mobile money is critical.
- Ghana: MTN MoMo, Vodafone Cash, AirtelTigo Money – widely adopted for deposits. Mobile money agents are everywhere in Ghana, so bettors can convert cash to e-value easily.
- Nigeria: Mobile money is less entrenched (only ~4% use mobile money there). Instead, bank accounts are more common, but fintechs like Paga and OPay mimic mobile money-style wallets and are used by some bettors.
The partnership between betting operators and telcos is crucial. Most operators must secure a “paybill” or merchant code from the telco to integrate payments. For instance, Safaricom in Kenya actively manages hundreds of paybills for betting companies, and in 2019 it even briefly halted payments for operators during a licensing dispute, showing the influence of telco payment gateways on the industry.
Bank integration & cards:
Banks play a role particularly in countries with higher banking penetration:
- South Africa: Many online bettors use debit/credit cards (Visa, MasterCard) or instant EFT (electronic funds transfer) to pay. SA’s banking system is advanced and most betting sites accept cards and even offer bank transfer via services like Ozow or SID. Moreover, SA sportsbooks may partner with banks to offer direct deposits (like FNB eWallet).
- Nigeria: With about 40% banked, cards and bank transfer are popular for online betting. Payment gateways like Flutterwave and Paystack make it easy for operators to accept card payments, and also provide account-to-account transfers. The introduction of USSD banking (dialing shortcodes for transfers) means even feature phone users can move money from bank to betting account.
- Francophone Africa: Countries like Côte d’Ivoire, Senegal, etc., also use mobile money (Orange Money, MTN) heavily, but where bank cards exist (via UEMOA’s GIM network), those can be used on some sites. However, issues like low card limits and fraud concerns limit card usage in many African markets. Using traditional banking usually incurs more friction (OTP codes, bank fees) compared to mobile money’s instant nature. Thus, even where available, many bettors prefer mobile wallets for speed.
- E-Wallets (online wallets): Global e-wallets like Skrill, Neteller historically were used by African punters to gamble on international sites (especially before local options existed). They are still used by high-stakes players or those on poker platforms, for example. But for local regulated sites, they’re less common, as local alternatives suffice. One exception is South Africa, where Skrill is accepted on some betting sites and helps players circumvent bank blocks on gambling transactions. Also, PayPal is not widely integrated for gambling in Africa (except perhaps in SA for a few operators), as PayPal’s support for gambling merchants is limited and their penetration in Africa is low.
- Airtime & SMS billing: In some countries, there were experiments with using prepaid mobile airtime to fund bets (essentially billing bets to phone credit). This isn’t widespread now because telcos prefer the formal mobile money route, and regulators worry it blurs lines (as airtime is meant for communication, not gambling). Still, in a few places like Cameroon or Ghana historically, some lottery games allowed playing via airtime deduction. Generally, airtime betting is discouraged due to transparency and taxation issues.
Cash vouchers & retail conversions:
Given many Africans still use cash, bridging online betting with cash is important:
- Many operators issue voucher codes that can be bought for cash at retail outlets (e.g., kiosks or petrol stations) and then redeemed online. For example, 1xBet had “1xPay” vouchers sold by vendors. In South Africa, OTT Voucher and 1ForYou Voucher are sold in convenience stores; players purchase a code with cash and enter it on the betting site to fund their account.
- Agent deposit/withdrawal: In Nigeria and Ghana, it’s common that you can visit a betting agent shop, hand them cash and they will credit your online account (or pay you cash for online winnings). These agents use their own wallet with the operator to do this. It’s a key way to serve customers who aren’t comfortable with digital payments.
- Bank branches: Some operators allow deposits via bank branch or ATM. For instance, a Kenyan bettor can walk to a bank and deposit to the betting company’s account and then send proof. This is less common now due to mobile money’s convenience.
Cryptocurrency:
Crypto usage in African online gambling is emerging but still marginal. Several factors drive interest:
- In countries with currency controls or unstable currencies (Nigeria’s Naira, Zimbabwe’s ZWL), some bettors find using Bitcoin, USDT or similar a way to preserve value and play on international sites.
- A few offshore sportsbooks explicitly target Africa with crypto betting (e.g., some accept Bitcoin and advertise on African forums).
- However, regulatory acceptance is low. Most licensed African operators do not accept crypto directly, partly because regulators haven’t sanctioned it. Also, crypto penetration among general population is still low, though growing among youth. Notably, the Astute Analytica report mentioned blockchain adoption – predicting 40% of online platforms incorporating it by 2024. This seems optimistic; in reality maybe some have blockchain-based provably fair games or accept crypto payments.
One example: BetLion Uganda reportedly trialed crypto deposits in 2022 on a small scale. The more likely scenario is crypto being used underground: players convert crypto to local currency via P2P, then use that money to bet, or use crypto on unlicensed crypto-casinos. Also, VPN+crypto is a common combo to access blocked international gambling sites without leaving a financial trail.
