Africa’s Most Popular Digital Payment Options

Africa's Popular Digital Payment Options

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Making payments for goods and services is a common occurrence in every society. The means of payment that one uses can be through mobile money, card payments or bank transfers. In most cases, the choice of payment mode depends on the buyer and the seller.

There are a number of factors that you need to consider when making a payment. This includes the convenience of using the mode of payment, the security of your financial information, and how quickly the transaction can be processed.

In this article, we will explore the different payment modes and help you decide which is the best for your business.

Mobile Money

84% of internet users in Kenya and 60% in Nigeria regularly made payments with mobile phones in 2021.

Mobile payments help with financial inclusion in African countries, where many people still don’t have bank accounts.

When it comes to collecting payments, there are a few different modes of payment you can choose from. One of the most popular methods is mobile money, which allows customers to make payments directly from their phones.

There are a few benefits to using mobile money as your mode of payment. First, it’s a quick and easy way for customers to pay. They don’t have to fumble through their wallets for a card or type in a bank transfer number; they can just tap and go.

Mobile money is a popular choice for many businesses as it’s quick and easy to use. All you need is a mobile phone and registered SIM card to start receiving payments. 

Second, it’s convenient for customers. They can make payments even if they don’t have their wallets with them or if they’re traveling overseas and don’t have access to their banks.

Third, mobile money is secure. Customer information is encrypted and protected, so you don’t have to worry about your payment details being leaked.

If you’re looking for an easy, convenient and secure way to collect payments, then mobile money is the way to go.

Card Payments

As of 2018, 80 percent of digital platforms in Africa offered customers the option to pay via card, making it the most commonly offered payment instrument for customers. 

In contrast, bank transfers were the most widely accepted payment method for providers.

When it comes to card payments, there are a few things you need to take into account. For one, you’ll need to have a card reader to process the payments.

 Secondly, you’ll need to decide which type of card payment system you want to use. There are three types of card payment systems:

Bank Transfers

There are a number of different ways you can collect payments from your customers, but which one is the best for you? Mobile money, card payments, and bank transfers are all popular options, but each has its own advantages and disadvantages.

Mobile money is a great choice if you want to make payments quickly and easily. All you need is a mobile phone and an account with a mobile money provider. 

You can use your phone to make payments in person, or you can transfer money to someone else’s phone.

Card payments are convenient and secure, and they’re a good choice if you want to accept payments from customers all over the world. 

You need a terminal or an app to accept card payments, and you’ll also need to set up a merchant account with a payment processing company.

Bank transfers are a safe and reliable way to collect payments from your customers. You need to set up a bank account with a bank that offers online banking, and you’ll need to provide your customers with your bank account details so they can transfer money to you.

Challenges Facing Digital Payments

While consumers have a great deal of choice with multiple payment methods like e-wallets, mobile money accounts and bank accounts, most lack interoperability. 

There’s a lack of harmonization among different countries’ regulations, with no connection with each other domestically or to international payment systems.

Complex Regulations

There is a strong need for solution providers in cross-border payments to navigate the complexity in the payments landscape, the high cost and slow speeds of sending money across borders, and the “lack of transparency” by current traditional payments providers.

High Costs

Sub-Saharan Africa remains the most expensive region to send money to, where sending $200 costs an average of 8.2 per cent in the fourth quarter of 2020.


Offering several payment options has proven to be a profitable venture, attracting both domestic and foreign investment. This has thus resulted in a massive rise in digital payment service providers, especially in Africa where there is still a significant gap between the transition from cash payments to digital payments

Lack of Interoperability

While consumers and businesses have an increasing choice of payment methods like e-wallets and mobile money accounts, most of these lack interoperability. At the same time, existing payments ecosystems are fragmented and complex, with a lack of harmonization among different countries’ regulations. This can result in slow, costly and unreliable ways of moving money.

Which Is the Best Option for You?

Now that you know the different payment options available, it’s time to decide which is the best for you.

Mobile money is a great option if you want to avoid carrying cash around with you. All you need is a mobile phone with a SIM card and you can start making payments. Plus, many of the larger banks have their own mobile money platforms, so it’s easy to find one that suits your needs.

Card payments are another popular option, especially if you’re doing business online. All you need is a debit or credit card and you can start processing payments immediately. 

This is a great option if you want to keep track of your expenses, as most card payments come with detailed statements that break down each transaction.

Bank transfers are the most traditional way of collecting payments, and they’re still very popular among businesses of all sizes. All you need is a bank account and the other person’s bank account details to start transferring funds. 

This is a great option if you want to keep your payments in one place and avoid paying any processing fees.


At the end of the day, it’s up to you which mode of payment you choose to use to collect payments from your customers. But remember, whatever you decide, it’s important to make sure your customers are aware of the payment options available to them.

So, whichever mode of payment you choose, make sure you’re offering your customers the convenience and flexibility they need and deserve!

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