The digital payments economy in Nigeria and other African countries is projected to hit $1.5tn by the end of this decade, driven by improved internet penetration and financial inclusion rate.
This estimate was indicated in the Mastercard-commissioned report by Genesis Analytics, which was made available to The PUNCH on Tuesday.
According to the report, Africa’s digital transformation is underpinned by rapid advancements in internet penetration and financial inclusion, two of the fastest-growing enablers of digital payments across the continent. 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.
The report also indicated that the trends signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
To support this projection, Mastercard said that it would continue to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
Mastercard said its investments will focus on three key areas to further accelerate digital adoption and financial inclusion: enabling Africa’s micro, small and medium businesses; empowering Africa’s fintech sector; and scaling remittances and cross-border payments.
“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 to build a more connected and accessible digital future,” said the president of Eastern Europe, the Middle East and Africa at Mastercard, Dimitrios Dosis, in a statement.
“For over five decades, Mastercard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development. 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,” said division president, Africa, Mastercard, Mark Elliot.
Mastercard added that it is partnering with banks, telcos, and other service providers across Africa and internationally to help accelerate fintech growth and expansion in new markets.
