Africa’s payments landscape

​Africa’s payments landscape is undergoing a significant transformation, driven by payments modernisation and hyper-digitalisation. Over the next few years, the continent's digital payment systems will continue to evolve, impacting transactions across organisations, institutions, and for individuals. In our latest paper, we explore how regulators are fostering an inclusive and resilient payments ecosystem in Africa, laying the groundwork for growth through comprehensive Digital Public Infrastructure (DPI).

​The findings from the 2024/2025 African Financial Industry Barometer reveal a mix of optimism and caution among financial institutions. While 72% of respondents have a positive outlook, notable disparities exist between the confidence levels of fintech firms and traditional banks. The paper highlights pressing concerns such as inflation and the need for regulatory frameworks that adapt to innovations in digital finance, particularly as new ecosystem players emerge and payments value chains become more disaggregated.

​As we look at global examples, we examine the Reserve Bank of India’s successful initiatives, which have revolutionised the nation’s financial system through real-time payments and digital infrastructure. This provides valuable lessons for South Africa, where the South African Reserve Bank (SARB) is taking proactive steps towards payments ecosystem modernisation with the Payments Ecosystem Modernisation (PEM) Programme. This initiative aims to deliver fast, secure, and inclusive digital payments, while enabling a more open, interoperable, and innovation-driven ecosystem.

​Against this backdrop, two powerful and interconnected forces are shaping the future of payments in Africa: the modernisation of foundational infrastructure and the unbundling of the payments value chain.

​Modernising Payments in Africa: Building Digital Infrastructure for Growth

​Africa’s payments transformation is being driven by regulators taking on an increasingly active role in shaping the ecosystem. Through the development of Digital Public Infrastructure (DPI), they are establishing the foundational rails for interoperability across identity, data, and payments.

​This shift is accelerating financial inclusion in Africa, enabling a more resilient and scalable payments ecosystem, and supporting the growth of instant payments, digital identity, and interoperable platforms. Ultimately, payments modernisation is not only improving efficiency, but it is also creating the conditions for sustainable economic growth and greater participation in the digital economy.

​The Great Unbundling of Payments: Transforming the Payments Value Chain

​At the same time, the structure of the payments industry in Africa is evolving. The Great Unbundling breaks down traditional, vertically integrated banking models into modular payment capabilities that can be delivered independently.

​This shift is enabling fintech innovation in Africa, allowing platforms, banks, and non-traditional players to participate across the payments value chain. As capabilities such as issuing, processing, and acquiring become more accessible, competition is increasing and new partnership models are emerging.

​The result is a more dynamic, open, and innovation-led payments ecosystem, one that is reshaping how value is created, delivered, and captured across Africa’s financial services landscape. 

​To gain a deeper understanding of the strategic initiatives shaping the future of payments in Africa, download our comprehensive papers.