Africa’s digital payments economy to hit $1.5tn by 2030, study shows

By Gloria Methri

Africa’s digital payments landscape is on a meteoric rise, with a new report by Genesis Analytics projecting that the sector will reach a staggering $1.5 trillion by 2030. Driven by rapid internet penetration, financial inclusion, and a booming FinTech ecosystem, the continent is emerging as a global leader in digital transformation.

According to the Mastercard-commissioned report, internet penetration in Africa is expected to grow at a compound annual rate of 20%, while financial inclusion is set to expand at 6% per year. These trends are fueling the adoption of digital payments, with consumers and businesses increasingly turning to contactless and mobile transactions.

With nine of the world’s 20 fastest-growing economies projected to be in Africa, the region is primed for a financial revolution. Digital payment solutions are transforming urban centers and extending financial services to previously underserved rural areas.

FinTech and MSMEs: The Pillars of Growth

Africa’s FinTech boom is a key driver of this transformation. Nearly half of the continent’s FinTech firms were founded in the last six years, collectively raising $6 billion in equity financing since 2000. Fintech innovations are enhancing financial access, enabling digital wallets, mobile banking, and seamless cross-border payments.

Micro, Small, and Medium Enterprises (MSMEs), which contribute over 50% to Africa’s GDP, are also benefiting from digital payment solutions. Mobile money platforms and innovative payment technologies are empowering small businesses with faster transactions, access to credit, and new revenue streams.

The Cross-Border Payments Surge

A surge in cross-border transactions is fueling Africa’s economic mobility. Remittances to Africa reached approximately $100 billion in 2023, accounting for about 6% of the continent’s GDP. Digital payment infrastructure is making these transactions more seamless, allowing businesses and individuals to send and receive funds efficiently across borders.

As Africa continues to embrace digital payments, the sector is set to unlock unprecedented economic opportunities. With financial inclusion on the rise and FinTech innovation accelerating, the continent is well-positioned to become a global leader in digital finance by 2030.

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.”