Regional digital payment economy to hit $1.5tr in five years

Digital payment within the African ecosystem is projected to grow astronomically, hitting $1.5 trillion by 2030.

This is based on the outcome of a Mastercard-commissioned report handled by Genesis Analytics.

Mastercard said it is committed to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.

By fostering collaboration with key stakeholders, Mastercard aimed to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.

Mastercard’s investments will focus on three key areas to further accelerate digital adoption and financial inclusion, including enabling Africa’s micro, small and medium businesses (MSMEs); empowering Africa’s fintech sector; and scaling remittances and cross-border payments

Dimitrios Dosis, President of Eastern Europe, Middle East and Africa at Mastercard, said: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead. Mastercard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”

Mastercard noted that Africa’s digital transformation is underpinned by rapid advancements 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 yearly rate of 20 per cent, while financial inclusion is set to expand at six per cent per year.

These trends signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.

Division President, Africa, Mastercard, Mark Elliott, said: “For over five decades, Mastercard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development. 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. Our investments today will help build a more resilient economy for the future.”

Further, the report explained that by enabling Africa’s MSMEs, which account for over 50 per cent of Africa’s GDP, Mastercard continued to provide digital solutions that empower small businesses and drive economic expansion.

According to Mastercard, this commitment is reinforced by the Mobilizing Access to the Digital Economy (MADE) Alliance: Africa, in partnership with the African Development Bank Group. The initiative aimed to extend digital access to critical services for 100 million individuals and businesses over the next decade. As part of its broader goal to bring users onto Community Pass, Mastercard has set a target to register 15 million users in Africa within five years. Community Pass is a social enterprise initiative that digitizes and connects remote and rural communities to governments, NGOs, and private sector services.

To further fuel the potential of Africa’s MSMEs, Mastercard will accelerate easy access to its proprietary solutions such as Tap on Phone and SME-in-a-Box. The technology company will also continue to enable access to finance through its Track Micro Credit Programme, which has already benefited thousands of micro-merchants. Furthermore, African entrepreneurs will continue to gain knowledge on how to thrive as business owners through free learning resources such as The Entrepreneur’s Odyssey and Mastercard Trust Center.

On empowering Africa’s fintech sector, the report noted that the ecosystem is a key driver of digital transformation and economic progress. It noted that nearly half of all fintech firms on the continent have been founded in the last six years, collectively raising $6 billion in equity financing since 2000.