The payments landscape in Africa is undergoing extensive and rapid transformation, driven by local ingenuity, global trends, and a relentless push for long-overdue financial inclusion. For years the continent has been a testing ground for pioneering payment solutions that leapfrog traditional infrastructure. But now Africa isn’t just catching up – it’s setting the pace. Here are some of the trends we can expect to see fuelling this payments revolution on the continent in the coming years:
- AI will become the new guardian and enabler of payments
Imagine living in a world where every transaction, no matter how large or small, is completed almost instantly and comprehensively assessed for fraud. This is where Africa is heading as Artificial Intelligence (AI) increasingly takes centre stage in the payments’ ecosystem. Unlike legacy systems that typically react only after fraud has occurred, we can expect to see AI increasingly being harnessed to pre-emptively analyse patterns, flag anomalies, and stop fraud before it even happens.
AI is not just used for defense, it can also be used to improve customer experiences. For example, AI-powered chatbots can provide real-time answers to banking queries, making conversational commerce more common. This technology not only offers immediate customer support but also lowers costs for financial institutions, benefiting both parties. Additionally, AI-driven credit assessments are revolutionising the credit industry by using unconventional data to provide credit to individuals who have been ignored by traditional banks for a long time.
- The rise of account-to-account transfers
One of the significant components driving the shifting world of payments is the rise of account-to-account (A2A) transfers. Unlike traditional card payments, A2A transfers allow seamless, efficient, and affordable transactions. In South Africa, this trend is being turbo-charged by the rapid payments programme (RPP), which aims to deliver instant, cost-effective payments. For small and medium-sized enterprises (SMEs), A2A payments present a valuable opportunity by giving them immediate access to funds. The ability to transfer money quickly and inexpensively empowers these businesses to compete more effectively with larger corporations.
- Super apps will evolve into microcosms
While super apps have been the proverbial ‘next big thing’ over the past year (think China’s WeChat and India’s Paytm), Africa is charting its own path. Here, developers are doubling down on microcosm apps, which are specialised platforms that solve specific local problems. These aren’t sprawling ecosystems trying to do everything at once – instead, they zero in on sectors like agriculture financing, SME payments or logistics, delivering solutions tailored to the continent’s diverse needs. For example, an app designed to streamline payments for small-scale farmers in Kenya may not be relevant in urban Nigeria, where logistics solutions are more in demand. By focusing on targeted pain points, these apps are revolutionising how Africans engage with digital services.
- Digital IDs will be the key to unlock real financial access
One of Africa’s greatest barriers to widespread financial inclusion is the lack of formal identification databases that can be accessed by both law enforcement and financial institutions. Millions of people remain unbanked simply because they can’t meet the know your customer (KYC) requirements of financial institutions. Digital IDs, however, are changing the game. Take Nigeria’s National Identification Number (NIN) initiative, for example. By digitising identity verification, it has become much easier for individuals to access financial services. South Africa is also recognising the potential of digital IDs to simplify KYC, making it possible for more people to transact online securely. In the future, growing prioritisation of digital IDs will be the foundation on which Africa’s inclusive digital economy can be built.
- Embedded finance will see banks and fintechs forge new alliances
For years the narrative has been that fintechs will disrupt and replace traditional banks. But in Africa we’re witnessing a new story unfold – one of collaboration rather than competition. Embedded finance, where non-financial companies integrate banking services directly into their platforms, is becoming a major force. Banks in South Africa are a prime example. Once seen as lumbering giants, they are now teaming up with nimble fintech startups to embed services into everyday digital experiences. By leveraging their regulatory expertise and customer trust, banks are using embedded finance to regain relevance and reach new customers in innovative ways.
As these (and many other) trends gain momentum, they are not just going to change how money moves; they will reshape entire societies. The payments journey in 2025 and beyond is going to be one of bold innovation, and Africa is ready to lead the charge, creating new opportunities and paving the way for a future where access to financial services is finally a right granted to all, rather than a privilege reserved for a few.