Africa’s digital payments economy to reach $1.5 trillion by 2030 – Report

• A new report said Africa’s digital payments economy would reach $1.5 trillion by 2030
• It said rapid advancements in internet penetration and financial inclusion would spur the continent’s digital payments growth
• Mastercard, who commissioned the report, said it would continue investments that drive growth in Africa

Africa’s digital payments economy is expected to reach $1.5 trillion by 2030, spurred by rapid advancements in internet penetration and financial inclusion, the two fastest-growing enablers of digital payments on the continent.

This is according to a new report by Genesis Analytics, commissioned by Mastercard.

The report stated that internet penetration in Africa is projected to grow at a compound annual rate of 20 per cent, while financial inclusion is set to expand at six per cent per year.

It added that the projection indicates a shift toward digital transactions, with businesses and consumers adopting contactless solutions, further accelerating economic participation and financial accessibility across the region.

The report also noted that Africa’s fintech ecosystem is a key driver of digital transformation and economic progress.

It added that nearly half of all fintech firms on the continent have been founded in the last six years and have collectively raised $6 billion in equity financing since 2000.

Nigeria’s e-payment transactions hit an all-time high of N1.07 quadrillion in 2024

Recall that Nigeria’s electronic payment transactions reached an all-time high of N1.07 quadrillion in 2024, the first time it would hit the quadrillion mark.

The Inter-Bank Settlement System (NIBSS) said the figure stood at $702.6 billion in dollar terms based on the closing exchange rate of N1,535/$1 on December 31, 2024.

The value recorded on the NIBSS Instant Payment (NIP) represents a 79.6 per cent increase over the N600 trillion recorded in 2023.

The NIBSS data disclosed that though e-payment increased steadily throughout the 12 months of 2024, the highest value of N115.1 trillion was recorded in December due to increased spending during the festive season.

Mastercard to continue investments that drive growth in Africa

In his comments on the report, the President of Eastern Europe, Middle East, and Africa at Mastercard, Dimitrios Dosis, said Mastercard is committed to driving Africa’s digital growth as a longstanding technology partner.

He said this would be achieved through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.

“Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.

“By increasing our investments, expanding innovation, and fostering inclusion, we are helping to build a more connected and accessible digital future,” he said.

Dosis added that Mastercard would continue driving digital transformation across the continent by working closely with entrepreneurs, merchants, banks, start-ups, telecommunications companies, and governments.

Also, Mastercard’s Division President, Africa, Mark Elliott, said Mastercard has worked with African governments, businesses, and communities to advance financial inclusion and economic development in the last five decades.

Elliott said Mastercard’s future investments would focus on three key areas: enabling Africa’s micro, small, and medium businesses (MSMEs); empowering Africa’s fintech sector; and scaling remittances and cross-border payments to further accelerate digital adoption and financial inclusion.

“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and technologies to support the continent’s continued digital transformation.

“Our investments today will help build a more resilient economy for the future.

“Recognising that MSMEs account for over 50 per cent of Africa’s GDP, Mastercard continues to provide digital solutions that empower small businesses and drive economic expansion,” he noted.

FG’s revenue from electronic transfer levy increases by 107% in December 2024

Meanwhile, TheRadar earlier reported that the Federal Government’s revenue from Electronic Money Transfer Levy (EMTL) increased by 107 per cent in December 2024.

According to the December revenue-sharing data released by the Federation Account Allocation Committee (FAAC), EMTL revenue increased from N15.046 billion in November to 31.211 billion in December 2024.