As one of the world’s emerging markets, Africa has become a prime target for many POS companies seeking to expand their presence. Driven by technological innovation and the digitalization of financial services, the African payment market is continually evolving. To provide a clearer understanding of this dynamic landscape, UIPOS conducted a month-long survey, analyzing the current state and future trends of the African payment market in detail.
In 2023, the number of mobile payment users in Africa exceeded 400 million, accounting for nearly 45% of the global mobile payment user base. This indicates the rapid adoption of mobile payment solutions across the continent. However, due to widespread issues such as the lack of formal identity documents, the low level of trade formalization, and uneven internet infrastructure, cash remains the dominant payment method in Africa, accounting for over one-third of all transactions. As of March 2023, more than 350 million adults in Africa still lack access to financial services, with 55% of adults not having bank accounts, credit cards, loans, or deposits.
Despite these challenges, the growing spending power of the younger generation is driving a significant demand for more efficient payment systems in Africa. In addition to cash payments, mobile payments, and bank transfers are also widely used. UIPOS found that in 2022, the total daily mobile payment transaction volume in Africa reached $2.3 billion, representing three-fifths of the global daily mobile payment transactions. Nigeria’s Verve credit card programme, for instance, has secured over 65% of the market share and continues to grow. In addition, airtel, opay, etc. are also well-known digital payment solution platforms in Africa.
It is evident that young people in Africa are increasingly influencing market trends, with their payment preferences attracting greater attention. Moreover, as Africa’s economy develops and more companies establish a presence on the continent, improvements in financial education and internet infrastructure are expected to continue, driving further evolution in payment methods. UIPOS anticipates that the reliance on cash payments in Africa will gradually decrease, with digital payment coverage expanding significantly. Through its analysis of African market data in recent years, UIPOS believes that Africa’s strength in innovative alternative payment solutions will likely remain a key driver in advancing the continent’s payment landscape.