“According to the Eighty20 National Segmentation, the Students and Scholars segment make up 11% (4.8m people) of the consumer population in South Africa and has an average age of 17.5.
They are highly digitally engaged with 71% of the population owning a smartphone.
The segment has a low median income of R1 500 per month, with 3.8m under R1 000.
Only 31% of this population are banked. “ Eighty20 13 June 2022
Low-income levels are high
If the stats are correct, and Eighty20 has a very credible track record, 80% of this segment have an income of less than R1000 per month ($66) and Let’s assume that the remaining 20% are at the quoted median level of R1500 ($100). Irrespective, This means that the smartphones that they have are likely sponsored or handed down.
31 % – only 1,5m are banked. This must provide a great opportunity for any bank looking to tap into a very lucrative youth market whose income will only increase as they enter the job market. One thing is for certain, they want to be digitally and financially involved Digital Inclusion means market opportunities.
Once digitally included, SA’s youth will want to spend their money in the same way. This means that merchants need to ensure that they are equipped to accept digital payments – safely, securely, and conveniently.
If this is the state in South Africa, the opportunity in other emerging markets is even bigger.
As a certified Visa and Mastercard partner, please chat to us about equipping you for this next wave.
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