Africa’s payment landscape is evolving at high speed—offering vast opportunities but also requiring careful navigation. Here’s the latest intelligence to guide your strategy:
1. A Payments Ecosystem in Hyper-Growth
The digital payments economy is forecast to reach US$1.5 trillion by 2030, fueled by expanding internet access, rising financial inclusion, and strong investment from players like Mastercard.
The total payments market—including both consumer and business transactions—already exceeds US $2.7 trillion, with projections to pass US $3 trillion in the near future.
2. Mobile Money & Fintech as the Core Drivers
Sub-Saharan Africa counts over 763 million registered mobile money accounts, processing US $832 billion in transactions—a 22% annual increase.
Meanwhile, fintech innovation is surging. Neo-banks, local fintech firms, and hyperlocal “super-apps” are reshaping consumer and SME transactions. Notably, PalmPay now serves more than 35 million registered users across multiple African countries.
3. Cross-Border Payments Becoming More Affordable
The Pan-African Payments and Settlements System (PAPSS) enables real-time cross-border payments in local currencies, cutting fees from 10–30% down to about 1%. Currently operating in 15+ countries and with 150 banks onboard, PAPSS could save the continent US$5 billion annually.
The African Continental Free Trade Area (AfCFTA)—supported by PAPSS—is creating stronger trade corridors, though challenges like infrastructure gaps and fragmented governance persist.
4. Local Infrastructure & Sovereignty
Visa has opened its first African data centre in Johannesburg, boosting regional processing capacity and reducing reliance on overseas infrastructure—a signal of growing confidence in Africa’s digital payments ecosystem.
5. Emerging Payment Innovations
- Prepaid cards and digital wallets are expanding rapidly: valued at US $31.1 billion in 2024, expected to reach US $36.1 billion in 2025, and projected to grow to US $59.4 billion by 2029.
- In South Africa, card transactions are set to hit ZAR 2.9 trillion (~US $158.8 billion) in 2025, a 10% year-on-year increase, supported by contactless adoption and neo-bank expansion.
6. Technology Trends Driving the Future
AI and machine learning are increasingly deployed for fraud prevention, personalisation, and automation—enhancing both security and customer experience.
At the same time, contactless, QR payments, blockchain, super-apps, stablecoins, and embedded finance are reshaping how consumers and businesses transact, especially in urban hubs.
7. Risks to Assess
- Cryptocurrency adoption offers inclusion but carries volatility and minimal regulatory protection.
- Security gaps in mobile banking apps—particularly in some West African markets—highlight the need for robust cybersecurity.
- Regulatory diversity means strategies must be adapted market by market, with strong compliance and risk frameworks in place.
Executive Summary: What You Must Know
Africa’s payments market already measures in the trillions and continues to expand rapidly. Digital payments are projected to reach US$1.5 trillion by 2030.
The backbone of this growth is mobile money and fintech. With hundreds of millions of accounts and billions in transactions, these platforms drive financial inclusion. For new entrants, partnerships with local fintechs and super-apps are essential.
Cross-border payments are being transformed by PAPSS, enabling low-cost, real-time settlement in local currencies and powering intra-African trade under AfCFTA.
Local infrastructure is also strengthening, with moves like Visa’s African data centre reflecting a commitment to sovereignty and resilience.
Meanwhile, AI, digital wallets, contactless, and embedded finance are setting the pace of innovation—especially in consumer and SME markets.
But success is not without challenges: crypto volatility, fragmented regulation, and security vulnerabilities demand tailored strategies, strong compliance, and a deep focus on trust.
👉 In short, Africa offers unmatched opportunity in payments—but only for companies prepared to adapt, localize, and build for the long term.
