Africa’s payment frontier: Connecting systems, people, and opportunity

What you need to know

• Home to more than 1.5 billion people, Africa is the youngest and fastest-urbanizing region in the world.

• Mobile money has expanded financial access for millions and reshaped payments across much of the continent.

• Real-time payment systems now operate in over half of Africa, with Nigeria’s NIBSS handling 500M+ transactions monthly.

• Stablecoins make up over half of Africa's crypto transactions, helping offset high remittance costs and currency volatility.

• Interoperability frameworks, from PAPSS to national QR standards, are connecting systems that once worked in isolation.

• Local players like CapitecPay, Paga, Fawry, and M-Pesa are redefining how people and businesses transact.

• This blog continues our series based on dLocal’s Emerging Markets Payments Handbook 2025.

The generation driving Africa’s payment evolution

More than six in ten Africans are under 25, a generation bypassing traditional banking and going straight to mobile. With millions of mobile internet users and growing smartphone access, mobile phones have become Africa’s main financial tool. Urbanization, rising incomes, and digital habits have made eWallets, social commerce, and instant payments part of daily life.

With just 57% of Africans holding bank accounts, innovation has centered on accessibility. Africa hasn’t really digitized legacy systems, but rather built its own, redefining what financial inclusion looks like in a mobile-first world.

Africa’s eCommerce surge

With the world’s youngest and fastest-growing workforce, Africa is also seeing a rapid rise in online consumption. The region’s eCommerce market is set to nearly double to US$ 113B by 2029, driven by millions coming online through mobile.

Smartphone adoption, improved payment infrastructure, and urban growth are fueling this shift. While cash-on-delivery still dominates in some markets, digital payments are quickly gaining ground. In South Africa and Nigeria, these digital methods are capturing growing market share, especially in sectors like ride-hailing and streaming, where speed and security matter most.

Mobile money: Africa's financial backbone

No other region is advancing financial inclusion at this scale or speed. Mobile money defines Africa’s payment landscape. M-Pesa in East Africa set the pace, while West Africa now counts around 370M registered accounts.

Africa hosts nearly half of the world’s mobile money agents, creating a network that reaches even remote areas. These agents handle cash-in, cash-out, and payments, bridging gaps left by traditional banks and becoming financial hubs in their own right. This shift has opened new opportunities for businesses working within the mobile network operator ecosystem.

Real-time rails: Transforming transactions

Real-time payment systems are reshaping how money moves across the continent. More than half of African countries now run instant payment infrastructure, improving speed, security, and reliability.

Systems like Nigeria’s NIBSS, Egypt’s InstaPay, Kenya’s M-Pesa and PesaLink, and South Africa’s RTC are laying the groundwork for a more connected payment landscape. These rails are becoming central to everything from everyday transfers to merchant settlements.

The path toward connected payments

If mobile money gave Africa payment access, interoperability will define its next phase. For years, banks, telcos, and fintechs operated separately, and cross-border payments relied on foreign intermediaries. That’s starting to change.

Cross-border initiatives like the Pan-African Payment and Settlement System (PAPSS), driven by regional banks and fintech networks, are laying the groundwork for a faster, more integrated African payment ecosystem.

Stablecoins: A practical solution for remittances

Africa’s adoption of crypto is rooted in practicality. Stablecoins now make up over half of the continent’s crypto transactions, providing relief from high remittance fees (around 8.5%) and volatile local currencies.

In Nigeria, where FX fluctuations and settlement delays often strain liquidity, stablecoin transfers offer faster, lower-cost alternatives. Stablecoins are especially relevant across West Africa’s remittance corridors, where inflows represent a large share of GDP.

Despite differing regulations, demand for stable, cost-efficient transfers continues to grow, making stablecoins an increasingly practical part of Africa’s payment mix.

Regional insights: Payments shaping Africa’s growth

• North Africa: Egypt remains in transition, balancing cash use with expanding digital adoption through Fawry and Meeza.

• East Africa: The birthplace of mobile money, led by M-Pesa, where eWallets now connect with banks and fintechs for retail and government payments.

• West Africa: Rapid mobile money growth alongside local schemes like Verve, and eWallets like Paga driving domestic and real-time transactions.

• Southern Africa: A traditionally card-led market shifting toward instant transfers and tokenized solutions like CapitecPay.

This regional diversity shows that businesses need to align with how each market pays, not just follow continental trends.

Key takeaways

• The payments landscape in Africa is evolving faster than anywhere else in the world, defined by local innovation, real-time connectivity, and a shift toward inclusive digital finance.

• Mobile money remains dominant, especially in East and West Africa.

• Real-time rails are changing how money moves across the continent.

• eWallets are replacing cash in sectors like ride-hailing, streaming, and online retail.

• Stablecoins are emerging as practical tools for remittances and cross-border settlements.

• Interoperability, from PAPSS to QR initiatives, is linking banks, fintechs, and wallets under shared systems.

• Local innovators such as M-Pesa, Fawry, Paga, Verve or CapitecPay are driving digital commerce across the continent.