Building Trust in African Markets

Building Trust in African Markets with Secure Payment Systems

Despite the rise of digital payment services, cash is still the preferred choice in much of Africa.  

In Tanzania, 76% of customers prefer cash for in-store purchases. In Nigeria, currency in circulation hit a record high of N4.5 trillion in October 2024. And in Morocco, despite the growth of e-commerce, 66% of consumers still rely on cash payments.  

These figures point to a unique reality. Where digital financial services are widely available, adoption lags, not just due to infrastructure gaps but also because of persistent user hesitation. 

A 2024 GSMA report shows that concerns around safety and trust ranked higher than affordability or agent access as reasons for not using mobile money in Nigeria. One survey in South African townships revealed respondents were concerned about losing money to digital fraud or hidden bank fees, underscoring a fundamental issue that transcends infrastructure. 

Beyond Africa, the pattern holds. Despite growing access to digital services in Fiji, 88% of adults are believed to prefer cash, citing low digital literacy and a lack of trust. 

Trust is a challenge not just in user behaviour but also in policy. In parts of sub-Saharan Africa, new taxes on mobile transactions and rising concerns about fraud have made consumer protection and transparency critical to restoring confidence. 

A study from India reinforces this pattern, finding that trust significantly increases account ownership and usage, proving that access alone is insufficient. 

To understand how trust can be built, we must first explore why it’s lacking and how the African context shapes this challenge. 

Challenges to Digital Payment Adoption in Africa 

Low user confidence in digital systems 

In many African countries, limited digital literacy continues to be cited as a barrier to the adoption of mobile payments. But literacy alone doesn’t drive usage. People adopt tools that meet their needs and the tools they trust. 

Where systems are unclear, unreliable and hard to navigate, users may hesitate, not because they lack digital skills, but because the experience fails to earn their trust. Mobile money may offer a gateway to broader financial services, but users consistently need to encounter experiences that reflect their realities to build lasting confidence. 

Security concerns and fear of fraud 

For many Africans, fear of fraud is one of the most tangible reasons for avoiding digital payments. 

Fraud remains a widespread issue across mobile money systems. In 2024, much of it was linked to customer or agent activity. In Nigeria, the National Inter-Bank Settlement System (NIBSS) reported a 112% surge in fraud cases in 2023 alone. In Kenya, fraudsters stole 500 million KES after illegally registering 123,000 SIM cards using stolen identities, while South Africa lost R1.1 billion to card fraud in 2023, up 17.4% from the previous year. 

These aren’t isolated incidents; they reflect the scale and sophistication of digital financial crime across the region. 

Many providers and regulators are investing in digital financial literacy programs to support safer usage. While these efforts can help users understand basic tools and avoid common scams, education alone doesn’t drive adoption or prevent fraud.  

Building trust also requires strong consumer protection mechanisms. Users also need clear policies and reliable systems to protect them when things go wrong, whether recovering lost funds, reporting fraud, or resolving disputes. Even minor incidents can lead to hesitation or disengagement without strong consumer protection mechanisms, especially among new users. 

Policy and Infrastructure Gaps 

To build lasting trust, users must feel confident that the system will protect them when things go right, and especially when something goes wrong. That confidence depends on strong consumer protections, clear rules, and a consistent experience. However, in many African markets, the regulatory environment is still evolving, and this uncertainty makes people cautious. 

To strengthen protections, some governments have introduced measures aimed at curbing fraud and improving transparency. In Nigeria, for example, the Central Bank imposed a daily cash withdrawal limit of ₦100,000 per customer at POS terminals. Similarly, the Bank of Tanzania issued new guidelines on pricing for nonbank payment providers, aiming to ensure fees are fair and transparent. Kenya and Zambia have taken similar steps to limit excessive charges on digital services. But sometimes, users rarely know what protections apply or how to enforce them. 

The World Bank notes that strong consumer protection is essential for access and trust. Users must know how to stay aware and vigilant against fraudulent transactions, recover lost funds, and resolve disputes. The current recourse mechanisms are either slow or inaccessible in many markets. 

What building for trust looks like 

Trust in digital payments isn’t automatic; it must be designed in the product, the experience, and the systems around it. That means solving new and existing users' real concerns: confusion, insecurity, and unfamiliarity. To move beyond access, financial service providers must deliver intuitive, relevant, and safe tools. 

As Rachel Muriithi-Nyakabwa, Product Director at Onafriq, explains, inclusive solutions should create products that offer meaningful value, enabling cross-border transactions or connecting users to platforms they previously couldn’t reach. 

But functionality alone isn’t enough. Trust grows from ease and reliability. At Onafriq, we believe payments should be as simple as a phone call because when things just work, basic service users are encouraged and motivated to explore other options.  

Simplicity must be backed by consistent, secure performance. That’s why we embed compliance and protection at every level, aligning with global standards and local realities. Our partners benefit from easy integration and the support of regional teams with on-the-ground insight. 

However, we do not believe that building trust in digital financial services requires abandoning cash. Cash is still central for many, and thoughtful design should reflect that. Models, like allowing users to buy digital services with cash at agent locations, allow engagement on familiar terms, reducing friction and encouraging gradual adoption.

Conclusion 

The potential of Africa’s payment landscape is immense, and this is not solely because of infrastructure. It’s also because digital services are beginning to align with real, everyday needs. Across the payments ecosystem, there’s growing evidence that when users feel protected, understood, and empowered, adoption follows. 

Digital transformation is no longer optional. It’s already underway. However, building inclusive, scalable systems will require more than access; it requires trust by design. 

That means recognising that trust isn’t a barrier to adoption; it’s how we scale.