Prepaid Cards As a Strategic Link For Inclusive Growth

The African economy is undergoing transformative changes, highlighting the urgent need to accelerate financial access. As digital services and products expand globally, Africans are increasingly eager to embrace and participate in the global economy.

However, geography plays a crucial role in whether that access becomes a reality or not. The ability of a shopper based in Amsterdam and another based in Lusaka, Zambia, to make seamless international payments differs greatly. In this scenario, millions of African-based consumers are at the receiving end.

While mobile money has revolutionised access to cashless services on the continent, most regional and global merchants cannot accept mobile payments. But what if consumers and merchants who store money on mobile phones or digital wallets could obtain cards to make easy online payments? They would be empowered with access to pay global companies that have been out of reach for years. 

Prepaid cards have emerged as a powerful tool for making joining the global economy possible. By examining the financial landscape and the potential of prepaid solutions, we can see how they serve as a strategic lever for inclusive growth.

The Current State of Financial Services Access in Africa

Traditional banking structures and regulatory barriers have long hindered financial access across Africa. Indeed, mobile money has made significant strides and continues to do so, with 835 million registered mobile wallet accounts processing $912 billion annually—equivalent to $1.7 million per minute.

For our CEO, Dare Okoudjou, cards are the true link between alternative stores of value, such as mobile money, and the global digital economy. Not all mobile money schemes are built with the same standards, so it’s difficult for global merchants to accept payments from the more than 150 on offer just in Africa. Simplifying users’ ability to transfer their money from wallets to cards opens the world up to the continent - and Africa to the world.

This is where prepaid cards come into play. Prepaid cards simplify consumers’ ability to make transfers from their wallets to cards, giving Africans true access. Unlike other available cards, prepaid cards require no bank account or credit checks, making them highly accessible to underserved populations. Their versatility provides consumers with secure, controlled payment options. For our partners, prepaid cards represent an innovative way to expand their offerings, serve previously excluded markets and create new revenue streams.

Prepaid cards' impact is enhanced not only by their ability to complement existing solutions like mobile money and bank accounts but also because of their flexibility and accessibility, especially in markets with limited banking infrastructure.

The Potential of Prepaid Cards for Financial Access and Business Growth

Prepaid cards offer unique advantages, especially for those excluded from traditional banking due to financial or geographic constraints. Their versatility and accessibility make them vital for fostering financial inclusion and economic empowerment.

Accessibility and Control:

Prepaid cards extend financial services to underserved populations, empowering even those in remote regions to engage with the digital economy. With no requirement for credit checks or bank accounts, users can perform various secure transactions. Their pre-loaded, fixed balance helps users manage spending more effectively, appealing to budget-conscious consumers and businesses.

Versatility: 

They provide a gateway to digital services, from e-commerce and streaming subscriptions to mobile top-ups and bill payments. Additionally, they support multi-currency transactions, simplifying payments and boosting economic integration across Africa’s diverse financial landscape.

Promoting Inclusion:

Prepaid cards also bridge the gap between informal and formal financial systems. By offering a straightforward entry point into the formal economy, they provide broader economic opportunities, enabling trade and business participation without requiring significant infrastructure investments.

Beyond linking mobile wallets to the global economy, prepaid cards unlock an array of solutions for businesses, governments, and underserved populations. They streamline corporate processes like expense management, payroll distribution, and employee benefits, offering convenience and efficiency. For governments and NGOs, prepaid cards enable seamless disbursement of aid and grants, extending financial inclusion to vulnerable communities. Meanwhile, fintechs leverage them to access global payment networks and create new revenue streams through innovative card programs. With their adaptability, prepaid cards don’t just bridge gaps—they build opportunities across Africa's financial landscape.

More than just a payment tool

Prepaid cards are more than just a payment tool—they are a gateway to financial inclusion, economic empowerment, and cross-border growth. At Onafriq, we’ve harnessed their potential through multi-country programs, offering BIN sponsorship across 30+ countries and connecting over 700 million wallets within our network. By bridging gaps between mobile money, traditional banking, and the global digital economy, prepaid cards enable individuals, businesses, and governments to thrive. With these innovative solutions, we’re not just fostering financial inclusion; we’re shaping the future of Africa’s economic participation on the world stage.