Digital Payments Surge Across Africa
A major shift is transforming Africa’s business landscape as more than half of firms on the continent now operate cashless, according to new industry data. From Lagos to Nairobi, digital transactions are fast replacing traditional cash payments, marking a new era for trade, e-commerce, and financial inclusion.
The report highlights that small and medium-sized enterprises (SMEs) are at the forefront of this digital revolution, using platforms such as Flutterwave, Paystack, and M-Pesa to process daily sales. Analysts say this transition reflects a growing confidence in technology-driven payment systems that enhance transparency and convenience.
A History of Slow Adoption
For decades, Africa’s business sector relied heavily on cash largely due to limited banking infrastructure and low digital literacy. However, the COVID-19 pandemic accelerated the continent’s transition toward cashless systems, as contactless transactions became safer and more efficient.
Financial experts note that improved smartphone penetration and cheaper data have helped bridge the digital divide. In countries like Kenya, Rwanda, and Ghana, mobile money transactions now account for over 70% of domestic payments, showing just how far the region has advanced in less than a decade.
Innovation and Investment
The rise of digital payments has attracted a wave of local and foreign investment into Africa’s fintech ecosystem. Venture capital firms are pouring funds into startups building mobile banking apps, crypto solutions, and cross-border payment platforms.
In Nigeria alone, digital transactions grew by over 80% between 2022 and 2025, thanks to innovations like the eNaira and instant bank transfers. Similar growth patterns are emerging in Egypt and South Africa, where regulators are updating frameworks to accommodate fintech expansion while ensuring consumer protection.
Challenges and the Road Ahead
Despite the progress, challenges remain. Limited access to reliable internet in rural areas, inconsistent regulation, and cybersecurity risks continue to threaten growth. Many businesses still face transaction delays and high service fees that eat into profits.
Experts say addressing these gaps will be critical to sustaining the digital shift. Governments are urged to harmonise financial policies and invest in infrastructure that supports innovation. As Africa moves deeper into the digital economy, the cashless trend could redefine not only how Africans do business, but how the world trades with Africa.