How can African payment licences drive more innovation?
Digital payments. Source: Unsplash via Benjamin Dada

If your current location is somewhere in Africa at the time of reading this article, the next purchase you make today will likely be paid for in cash.

Now I am no soothsayer but judging from what statistics show, there is a high chance that I am right.

 

Key takeaways:

  1. Cash is still king in Africa. In 2019, the continent’s non-cash transactions amounted to only $17 billion in 2019, compared to $216 billion in Europe or $244 billion in Asia.

  2. However, digital transactions are rising—five out of the seven unicorns on the continent are payment companies. 

  3. Still, regulators have a role to play in creating enough incentives in their licensing standards to attract potential startup founders to want to set up local operations and build viable payment solutions.

​​​​​​

In 2021, just about half of the population in Sub-Saharan Africa (SSA) used an electronic form of payment (i.e. a debit/credit

This story is only available to Premium subscribers Subscribe or sign in to finish reading

Not ready to subscribe? Register to read a selection of free stories

Nchedolisa Akuma

Nchedolisa Akuma

Read Latest

When PFAs become LPs: The funding shift in African PE

PREMIUM - 12 SEP 2025

Pensions Industry in South Africa: Business Model, Growth, Competition (September 2025)

PREMIUM - 10 SEP 2025

Weekly Africa Macro Update: September 1 - 5, 2025

PREMIUM - 08 SEP 2025

Africa's stronger currency outlook could lift PE returns

PREMIUM - 05 SEP 2025

Download our mobile app for a more immersive reading experience

Scan QR code
mobile download