Africa’s $1.5 trillion payments opportunity — what will it take to get there?

By Shehryar Ali, Senior Vice President and Country Manager for East Africa and Indian Ocean Islands at Mastercard

Africa is on the cusp of a payments revolution. Fuelled by mobile innovation, a vibrant fintech scene and rising demand for seamless digital experiences, the continent’s digital payments economy is expected to triple in value to $1.5 trillion by 2030, according to a new report commissioned by Mastercard.

But growth on this scale is neither guaranteed nor automatic. It will require deliberate action to address longstanding barriers—fragmented infrastructure, financial exclusion, trust deficits and funding gaps. The next five years will be critical in shaping a payments ecosystem that works for everyone.

A mobile-first mindset

Kenya offers a preview of what’s possible. With nearly 79% of the population using mobile money and 45% saving through digital platforms, the country has redefined how financial services reach the last mile. Here, mobile phones have become bank branches, wallets, credit providers, and income generators. In this dynamic mobile-first culture, market stalls, fintechs and farmers alike are thriving.

The lesson? When digital rails are accessible and trusted, inclusion follows. At Mastercard, partnerships have helped create a fertile environment for both informal traders and fast-scaling startups. Our work with Safaricom’s M-Pesa, for instance, has extended secure digital rails across Kenya with over 636,000 merchants expected to benefit from this collaboration.

Supporting SMEs - the backbone of Africa’s digital revolution

Small and medium-sized enterprises (SMEs) remain the engine of African economies, contributing roughly half of the GDP and employing more than 80% of the workforce. Yet, most remain locked out of formal finance. The $330 billion credit gap they face is more than a financing issue, it’s a structural hurdle to innovation, productivity and inclusive growth.

Closing this gap demands solutions that blend simplicity, speed and scale. This includes technologies like Tap on Phone, which turns any smartphone into a payment terminal, eliminating the need for costly hardware.

Another innovation is the QR Pay by Link allowing SMEs to accept card payments via QR code or secure link, providing businesses with an efficient, cost-effective way to drive payment acceptance without needing physical point of sale (POS) devices.

Through our collaborations with I&M Bank, we have designed business credit cards to help businesses manage day-to-day expenses more effectively and support global operations.

Public-private collaboration is equally essential. Take, for instance, our MADE Alliance initiative backed by the African Development Bank which will connect 3 million individuals and businesses across Kenya, Tanzania and Nigeria through Mastercard’s Community Pass platform.

Over the next decade, the MADE Alliance aims to connect 100 million individuals and businesses across Africa, expanding access to digital tools and financial services in underserved communities.

This work builds on our broader global ambition to bring 50 million small businesses and 25 million women entrepreneurs into the digital economy by 2025. So far, we have connected 48 million SMEs to the digital economy and 37 million women entrepreneurs to growth opportunities, demonstrating our belief that when small businesses thrive, economies do too.

Fintech as a catalyst for growth

Africa’s fintech innovators are powering the next wave of digital transformation, with revenues set to reach $65 billion by 2030. But while funding rounds and startup counts draw headlines, less attention is paid to the infrastructure that underpins sustainable growth: identity systems, fraud protection, regulation and interoperability.

The future belongs to platforms that can scale responsibly. That means embedding biometrics, AI-driven security and open banking safeguards as default.

It also means supporting innovation through structured acceleration programs, like Mastercard’s Start Path accelerator which has supported over 400 fintechs worldwide, and collaborations such as the one with Diamond Trust Bank which is enabling tech-driven firms to issue their own cards to help fintechs go from pilot to product at speed.

Cross-border payments — the key to livelihoods

In 2023, Africans living abroad remitted over $100 billion home—about 6% of the continent’s GDP—but paid some of the highest fees in the world, averaging 7.73% per transfer.

The cost of sending money remains a barrier which technology can address. Platforms like Mastercard Move are transforming the way people send and receive money through a secure, user-friendly interface.

With access to over 180 countries, more than 150 currencies, and nearly 10 billion endpoints, it’s helping reshape the global payments landscape. Strategic local collaborations, like with Access Bank and Equity Bank in East Africa, are enabling faster, more affordable cross-border payments.

Success depends on more than reach. What end users want is transparency, speed and control: knowing where their money is, what it costs to move it and how it will be received, through whatever means. The future of cross-border payments will be won not just through technology, but through trust.

Making seamless everyday payments possible – together.

From supermarkets to school fees, digital payments are reshaping everyday life. But seamless, secure and inclusive experiences are still not the norm. Progress will come through tighter integration between banks, fintechs ,telcos and the public sector.

With Africa’s population expected to reach 2.5 billion by 2050, with a young, tech-savvy generation leading the way, now is the moment for bold action. Turning this potential into progress will require sustained investment, policy alignment and above all—collaboration.

Governments must create enabling regulatory environments. Investors must be patient and purposeful. And the private sector must remain committed to building inclusive, resilient infrastructure.

For Mastercard, this isn’t a new mission. We’ve been working across Africa for over 50 years, not just as a technology partner, but as a believer in the continent’s future. The $1.5 trillion opportunity is within reach—but only if we build it together.