E-Commerce, Newsroom, Payment | 5. January 2024

Digital Payment Landscape in Africa

Find out more about the development of digital payments in Africa and its importance for EU companies. Our article covers key methods such as mobile money and card payments and new trends such as QR code payments and super apps. We address the complexity of regulations and hurdles to interoperability and offer strategies for EU companies to adapt and penetrate the market. by

Africa’s rapidly evolving digital payment landscape offers opportunities and challenges for EU businesses. Adapting to this diverse and innovative ecosystem is crucial for successful cross-border commerce. However, the varied nature of African markets requires a strategy tailored to respect each country’s unique aspects. EU businesses can leverage this opportunity by embracing local preferences and innovative payment methods. The growth in mobile networks and the availability of affordable smartphones are driving a revolution in digital payments across Africa. This transformation enhances financial access, especially in rural areas, reduces costs, fosters economic inclusion, and reshapes the continent’s financial landscape, paving the way toward greater economic stability and prosperity.

Popular Payment Methods in Africa

Mobile Money

Mobile money is arguably the most dominant form of digital payment in Africa. Driven by the continent’s high mobile phone penetration, services like M-Pesa in Kenya and MTN Mobile Money in various West African countries have become household names. These platforms allow users to store, send, and receive money using mobile phones, offering a convenient alternative to traditional banking, especially in regions with limited banking infrastructure and fostering financial inclusion.

Card Payments

Card payments, including debit and credit cards, are also significant, particularly in urban areas and among the middle to upper classes. They are commonly used for online and offline transactions, offering a familiar payment method for international businesses operating in Africa. Fintech innovation and the increasing prevalence of POS terminals are driving the growth of card payments, further enhancing financial inclusion and facilitating cross-border payments.

Bank Transfers

Bank transfers remain steadfast, especially for B2B transactions and large-scale financial movements. With the growth of Internet banking and mobile banking apps, transferring funds between accounts has become more accessible and convenient, even for individual users. However, interoperability challenges remain, hindering seamless transactions and cross-border transfers.

The top 10 mobile payment companies in Africa

ServicesCountries OperatedUsers
Airtel MoneyMobile money transfers, bill payments.14 African countries
Chipper CashCross-border money transfers.Pan-Africa and international
Ecobank MobileMobile banking, payments, transfers.36 African countries
JumoDigital lending, data-driven financial services.11 African countries
M-PesaMoney transfers, payments, loans, savings, insurance.Kenya, Tanzania, South Africa, DR Congo, Mozambique, Egypt, Lesotho51 million​
MTN Mobile MoneyFinancial transactions, online shopping, banking partnerships.15 countries​56.8 million​
OPayMobile money, payments, lending.Nigeria
PagaMoney transfer, bill payment, airtime purchase.Nigeria6 million
SureRemitMobile remittances from the UK to Africa.Pan-Africa
Tigo PesaMobile money transfers, financial services.5 African countries​

Key Payment Trends in 2024 and Beyond

  • QR code payments have emerged as a convenient and contactless payment option, particularly appealing in busy retail environments and for online transactions.
  • Embedded Finance blurs the lines between traditional banking and non-financial platforms, seamlessly integrating financial services into everyday apps and websites. Consumers can now access financial products like payments, lending, or insurance within the context of their preferred platforms, enhancing convenience and providing a holistic financial experience.
  • Super Apps are becoming a cornerstone of Africa’s digital payment landscape, offering a one-stop-shop for a wide range of services, from messaging and social media to financial transactions and e-commerce.
  • The BNPL (Buy Now, Pay Later) model, which allows consumers to purchase goods and pay for them over time without upfront costs, is gaining traction in Africa, particularly among young and digitally savvy consumers.
  • Voice-based payments are gaining popularity in Africa, leveraging the widespread adoption of smartphones with voice assistants. This trend is particularly beneficial in regions with high illiteracy rates.
  • AI-powered Payments: AI is increasingly important in enhancing the payment experience and ensuring security. AI algorithms can analyse consumer behaviour, identify fraud patterns, and personalise payment recommendations, offering a more personalised and secure payment environment.
  • As the digital payment landscape evolves, there is a growing need for regulatory harmonisation and standardisation across African countries to ensure consistency and interoperability. This will promote a more seamless and integrated payment ecosystem, fostering cross-border transactions and facilitating the growth of digital payments.
  • Investments in digital infrastructure, such as broadband connectivity and POS terminals, are crucial for enabling the widespread adoption of digital payment solutions across Africa.
  • African fintech companies are at the forefront of innovation, developing cutting-edge payment solutions that address African consumers’ and businesses’ unique needs.

Impact on EU Businesses

The challenges and opportunities for EU companies in the African digital payments market can be summarised as follows:


Regulatory complexity: African countries each have their own rules for digital transactions, which poses a complex compliance challenge for EU companies. The diversity of rules and standards complicates cross-border transactions and impacts trade and financial flows.

Interoperability issues: A significant problem is transferring money between different payment systems, such as between various mobile money services or from mobile wallets to bank accounts. This fragmentation of the payment system can lead to dissatisfaction among consumers and limit the growth of digital commerce.


Customised offers: By understanding and integrating local payment preferences, EU companies can increase customer satisfaction and loyalty and stand out in the African market.

Economic empowerment and development: Adopting local payment methods and promoting financial inclusion enables EU businesses to address economic inequalities and support sustainable growth in Africa.

Adaptation strategies to African payment methods

Local market research: Find out about the preferred payment methods, regulatory environment and consumer behaviour in the African target markets.

Partnerships with local payment providers: Enable access to established payment systems and support regulatory compliance.

Customised business and payment solutions: Develop solutions that fulfil the local market’s needs.

Do you want to enhance your cross-border payment processes? Get in touch


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