Africa’s digital banking sector is expanding rapidly, driven by mobile adoption, fintech innovation and major infrastructure investments. Forecasts suggest the continent’s digital payments economy could reach US$1.5 trillion by 2030, positioning Africa as a global leader in mobile-first financial solutions.
Mobile-led transformation
Sub-Saharan Africa has become the world’s largest hub for mobile banking, accounting for nearly half of global mobile financial service activity. Registered accounts and transaction volumes continue to grow at double-digit rates, reflecting how millions of people are bypassing traditional banks in favour of mobile platforms. Services such as M-Pesa in Kenya and EcoCash in Zimbabwe remain emblematic of this leapfrogging trend.
Fintech champions emerge
Nigeria’s PalmPay has quickly risen to prominence, with more than 35 million registered users and around one million small and medium-sized enterprises now transacting on its platform. Offering payments, transfers, loans and insurance, PalmPay exemplifies the continent’s capacity to build large-scale, mobile-first ecosystems. Analysts view such platforms as critical for driving financial inclusion and economic activity.
Infrastructure and global investment
International companies are also strengthening Africa’s digital financial backbone. Visa recently opened its first African data centre in Johannesburg, part of a US$1 billion commitment to support local transaction processing. The facility reduces reliance on overseas systems and enhances resilience as digital payment volumes grow. Similar moves by Mastercard and other multinationals point to intensifying global interest in Africa’s fintech markets.
Policy and inclusion drive
Initiatives such as the World Bank’s Digital Economy for Africa (DE4A) programme have doubled internet penetration since 2016, laying the foundation for wider access to digital banking. Governments across the continent are also advancing fintech regulation, seeking to balance innovation with consumer protection. This regulatory evolution is expected to support further growth in neobanks and digital-first lenders.
Outlook
Africa’s digital banking revolution shows no sign of slowing. While challenges remain—including digital literacy gaps, cybersecurity risks and patchy infrastructure—the momentum is reshaping the financial landscape. With local innovation, global investment and regulatory support converging, Africa’s digital banks are poised to deliver transformative economic and social benefits.
REFH – Newshub, 5 September 2025
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