Digital Payments in Africa: Can Regulation Keep Up With Rapid Innovation?

Africa’s financial landscape is experiencing significant transformation as digital payments increasingly displace cash and emerging crypto assets challenge traditional notions of money.^[1] Previously constrained by low banking penetration, the continent is now redefining financial inclusion through the growth of mobile money and fintech innovation.^[2] This shift is further propelled by increased internet and mobile phone penetration, the rise of e-commerce platforms, and a youthful, tech-savvy population.^[3]

However, as the adoption of digital payments grows, the need for regulatory frameworks that promote innovation, protect consumers, and enhance the integrity and security of the financial system has become increasingly critical.

The Digital Payments Revolution

Mobile money has changed the way people handle payments in Africa, with more than 1.1 billion registered mobile money accounts in 2024, reflecting a 19 percent increase from the previous year. Active accounts in 2024 rose by 13 percent to 286 million, demonstrating both broad adoption and growing usage.^[4] Transaction value climbed 12 percent to USD 1.1 trillion, while the number of transactions jumped 28 percent to 81 billion, indicating that users are making more, smaller payments, even as larger transfers persist.^[5] This shift reflects deeper financial engagement enabled by expanding smartphone and internet access, as well as innovative mobile money services.

Figure 1: Key Indicators for Africa^[6]

Africa has also emerged as one of the fastest-growing regions for crypto asset adoption, recording over $125 billion in on-chain crypto transactions in recent years, a trend that underscores the continent’s shift toward cheaper, faster, and more accessible remittance alternatives.^[7] Crypto-based remittances, including those facilitated via stablecoins and blockchain networks, are being explored to bypass the high costs and delays associated with traditional banking infrastructure.^[8]

Simultaneously, fintech APIs are revolutionising cross-border transactions by enabling ...

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