In Africa, the future of payments is being shaped by favorable demographics, economic growth, and innovative payments infrastructure. Businesses across the continent, whether small enterprises or large corporations, require reliable payment solutions tailored to their unique needs. Over the past decade, payment startups have made strides in addressing challenges within Africa’s payment ecosystem, with notable successes and some setbacks.
Despite facing regulatory obstacles, funding shortages, and security breaches, African fintech companies have demonstrated resilience by developing platforms that cater to local demands. However, there is still room for improvement, as highlighted by experts at a panel discussion in Lagos.
The importance of interconnection and interoperability among different payment systems in Africa was emphasized, aiming to facilitate seamless cross-border transactions. While countries like Egypt, Ghana, Kenya, Nigeria, and South Africa have made significant progress in transitioning to digital payments, the integration of payment systems across borders remains a challenge.
Efforts to streamline policies and licensing processes across African markets were underscored as essential for fostering growth in the fintech sector. With the right policies in place, African fintech companies can attract capital and talent, further driving innovation in the industry.
Projections suggest that by 2025, both domestic and cross-border payment volumes in Africa will reach 200 billion, primarily fueled by the growing urbanized youth population. Despite existing challenges, the growth of domestic payment solutions like Verve in Nigeria indicates promising progress in the sector, according to industry experts.