When I began my career in Fintech in 2021, digital payments had already transformed significantly from their early days, marked by innovations like M-PESA in 2007, which revolutionised mobile money and financial inclusion. Today, I watch in admiration how a marketplace vendor in rural Kenya completes a transaction with nothing more than a basic mobile phone. This transformation isn’t just about technology. It’s about so much more. Economic autonomy. Opportunity. Ambition.
Too often people mistake financial inclusion as those who have access to basic bank accounts. But instead, it’s about ensuring that every person, regardless of their location or circumstances, can access appropriate, affordable and timely financial services.
It feels that each and every day, digital transformation accelerates a little bit faster across Africa. Fintech is now the continent’s fastest growing start-up industry, and is expected to be worth more than $230 billion by next year. Mobile money solutions like M-PESA in Kenya have fundamentally transformed financial inclusion, enabling millions to use their phones for affordable transactions – at around 80% less cost than traditional banking methods. Beyond mobile money, new technologies are further advancing this mission. For example, JUMO leverages AI to process vast amounts of mobile and transactional data, enabling microloans and savings accounts for individuals and small businesses traditionally excluded from formal financial systems. By reducing error rates in credit allocation, these AI-powered solutions lower borrowing costs and deliver tailored services, empowering informal traders and entrepreneurs.
This wave of innovation is helping to reduce long-standing barriers, offering previously excluded populations opportunities to connect with the global economy and unlock their potential.
Building sustainable payment methods
The success we’ve seen in mobile money adoption across Africa proves an essential point: for payment solutions to truly drive inclusion, they must meet three critical criteria. First, they must be accessible. Not just in terms of technology and infrastructure, but in their ease of use and understanding. Digital financial solutions have successfully reached previously unbanked populations, particularly in rural areas. Second, they need to be secure, protecting user data and building trust in digital systems. And third, they must remain affordable, offering clear advantages over traditional methods without creating new financial burdens.
With the number of mobile money accounts now surpassing traditional bank accounts in Sub Saharan Africa, it’s clear that the key drivers go beyond convenience. There’s been a fundamental shift in how people participate in the economy. This ‘leapfrog effect’ is particularly significant in emerging markets, where communities once unable to access traditional services are now the first to adopt alternative solutions. When digital payments are accessible, opportunities are created for small businesses to grow, for families to save securely, and for communities to build economic resilience. Recent data from the GSMA shows that digital financial services could add $6 trillion to global GDP by 2025, with Africa positioned to capture a significant share of this growth through its robust mobile money ecosystem.
A key pillar of financial inclusivity is the understanding and adaptation to local payment preferences. Data shows that 92% of global e-commerce customers prefer shopping in their local currency, with 33% abandoning potential purchases priced only in USD. By integrating local payment methods and currencies, merchants can significantly increase approval rates and reduce declined transactions. In emerging economies, offering local payment methods is essential in building trust and accessibility in previously underserved markets. When we adapt our solutions to local contexts, we create sustainable pathways to financial inclusion that can scale naturally.
Overcoming infrastructure challenges
Fintech’s rise across Africa has brought forward numerous opportunities, but it’d be remis not to mention the challenges too. While mobile penetration continues to rise, many regions still face fundamental infrastructure hurdles. Unreliable power supplies and limited internet connectivity in rural areas continue to disrupt service delivery. Digital and financial literacy remains a significant barrier, particularly among older populations and in remote communities.
However, these challenges have sparked remarkable innovation. We’re seeing the emergence of offline payment solutions that can function without constant connectivity, and the development of solar-powered mobile charging stations in rural areas. Financial education is increasingly being embedded directly into payment apps, using local languages and culturally relevant examples to build understanding and trust.
The regulatory landscape is also complex. Different countries maintain varying requirements for know-your-customer (KYC) procedures, data protection, and cross-border transactions. Yet, as with infrastructure challenges, this complexity has led to creative solutions. Biometric identification systems are helping verify customers who lack traditional documentation, while regional payment networks are emerging to facilitate smoother cross-border commerce.
The role of emerging technologies in overcoming these challenges cannot be understated. Artificial intelligence is now helping assess creditworthiness for those without traditional credit histories, using alternative data points like mobile money usage patterns and business transaction records. We’re seeing blockchain solutions enabling more transparent cross-border payments, reducing costs and increasing trust in international transactions. Meanwhile, collaborative fintech hubs are emerging across the continent, from Lagos to Cape Town, creating spaces where local innovators can develop solutions that address specific regional challenges.
The future of financial inclusion in Africa
Progress now hinges on our ability to balance innovation with responsibility. Any players in the market – global or local, payment giants or startups – must ensure they serve everyone, from the market vendor in rural Kenya to the cross-border trader in West Africa. This demands continued investment in digital infrastructure, supporting financial education initiatives, and working collaboratively across borders to harmonise regulations.
The transformation I’ve witnessed firsthand throughout my career tells me that we are on the right path. But true financial inclusion is an ecosystem where everyone can participate fully in the digital economy. Until we fully understand local needs and develop appropriate solutions, we will not move far enough forward.
People must be at the centre of technological advancement. Through maintaining our focus on accessibility and affordability, and by continuing to innovate in response to local challenges, we can create a more inclusive financial future for all. The journey from traditional banking infrastructure to digital financial inclusion shows just how far we’ve come – and points the way to where we need to go next.
Karen Nadasen
Karen Nadasen is CEO of PayU Africa. Karen joined PayU in June 2012 as a Product Manager; she advanced to Head of Product and Delivery Manager for MEA, before being appointed as CEO in June 2016.
