African digital payments to reach $1.5trln by 2030

Published 1 day ago• 2 minute read

Africa’s digital payments economy is expected to reach $1.5 trillion by 2030, driven by rapid internet penetration and financial inclusion, according to a new report.

The report by Genesis Analytics, commissioned by card payments firm Mastercard, shows that the continent’s digital transformation is being underpinned by rapid progress in internet penetration and financial inclusion, two of the fastest-growing enablers of digital payments across the continent.

According to the report, internet penetration in Africa is projected to grow at a compound annual rate of 20 percent, while financial inclusion is set to expand at six percent per year.

These trends, says the report, signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial access across the region.“Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead,” said Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at Mastercard, in a statement on March 25.

Mastercard said it would continue to invest in Africa, banking on digital growth, public-private partnerships and innovation initiatives that drive financial health and economic growth.“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and technologies to support the continent’s continued digital transformation,” said Mark Elliott, division president, Africa, Mastercard.

The report makes a number of policy recommendations to improve trade. One of them is the usual demand: that seamless cross-border transactions will be essential for Africa’s economic mobility.

In Africa, there were some $100 billion worth of remittances by 2023, accounting for about six percent of the continent’s GDP.

Mastercard says the infusion of these funds into local economies is essential. But people tend to use most convenient and affordable means of remitting money. Firms enabling that, the firm said, will play into the needs of the masses on the continent, helping to grow the fintech.

In East Africa, Mastercard said its local partnerships, for instance with Access Bank and Equity Bank, have helped ease cross-border payments.

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