Payment in Africa: Unlocking Growth Opportunities with Regional Insights

For global players looking to scale into Africa, the opportunities are vast, but success requires a sharp, localised approach to navigating the complexities of payments on the continent.

Africa’s digital payments market is expected to grow revenue by approximately 20% annually - nearly triple the global rate. For those who believe in building where the future is unfolding, Africa is not just an option; it’s pivotal.

More people are online, using mobile devices, and a young generation is ready to transact digitally. But market growth alone doesn’t guarantee success. The real test is building solutions that reflect how people actually live, work, and move money.

A product that thrives in one region can be unsuccessful in another if it’s not tailored to local realities. And this becomes a critical consideration when entering Africa’s diverse and fragmented markets.

Strategic Drivers for Market Entry

A study examining the successful expansion of MNEs in the retail industry found that successful companies shared critical practices: selecting the right market entry strategy, tailoring their approach to each country's uniqueness, and strictly adhering to local regulations.

Regulatory considerations, in particular, are often the deciding factor between sustained growth and costly disruption, as even well-funded companies with strong partnerships have faced setbacks after entering markets without the proper licenses.

This is especially true in payments, where fast growth often invites heightened scrutiny. The regulatory environments in African countries are diverse and dynamic, and success depends on treating compliance not as a one-time hurdle but as an ongoing strategic priority.

And if the goal is to scale across multiple countries, this process isn’t just necessary, it must be repeated. Each market brings its own regulatory requirements, approval processes, and informal norms.

Beyond regulation, local context often has a bigger impact on performance than usually anticipated. Payment behaviours are shaped by informal economies, trust dynamics, and social norms that differ not just between countries but within them, across lines like gender, income level, and geography.

Africa has multiple alternative stores of value, with preferences that differ widely by market. Many of these varying payment preferences are subscale, making it too costly to serve users through one-to-one integrations. Any strategy for scaling must recognise this fragmentation. Solutions should be built to support a variety of payment methods, rather than assume rapid user migration to new ones.

Payment Insight Comes from Regional Experts

In addition to regulatory and market peculiarities, scaling into Africa demands a deliberate entry strategy shaped by local realities. Scaling across such diverse environments - regulatory and cultural - requires a partner that’s already embedded in local systems, consumer behaviours, and trust networks.

Building from the ground up may offer more control, but it also comes with higher risk, slower time to market, regulatory complexity, and limited on-the-ground insight. In contrast, partnering with an established regional player accelerates compliance, reduces friction, and brings immediate credibility with both users and regulators.

Regional partnerships are frequently recognised for their ability to accelerate market entry and enhance sustainability. Partnering with an established player allows you to bypass many early-stage risks while gaining instant access to regional expertise, infrastructure, and networks.

This is where Onafriq becomes a strategic advantage. Through one integration, our partners gain access to 43 African markets, One billion mobile wallets, 500 million bank accounts, and an agent network in Nigeria. All backed by our knowledge of local context, compliance expertise, and interoperable payments network.

Rather than building country by country, global players can scale efficiently by tapping into a network that’s already embedded in the local reality. By combining speed with access, our partners enter markets with operational readiness that only a regional-first approach can offer.

Execution Toolkit

Success in African markets comes down to a few core principles drawn from research, market outcomes, and on-the-ground experience:

• One-size-fits-all doesn’t work: Each market demands tailored solutions rooted in behaviours and infrastructure.
• Partnerships drive scale: Regional partners reduce risk, accelerate compliance, and unlock trust networks.
• Adoption follows relevance: Payment choices must reflect how people actually transact.

There is a huge opportunity for growth in African markets. However, regulatory alignment, market knowledge, and the ability to operate in line with local realities are crucial to scale successfully. Partnership with the right player remains the most effective way to bring these pieces together.