A LACK of awareness remains a major obstacle to the growth of cross-border digital payments in Africa, highlighting the need for greater collaboration among fintech firms, financial institutions, and regulators.
Blen Tenaw Alamayehu, business development manager at Singapore-based payments company Thunes, told Xinhua news agency that many African consumers and businesses still depend on costly traditional banking systems. These systems not only increase transaction costs but also limit financial inclusion.
High costs and limited access
Speaking at the Inclusive FinTech Forum (IFF) in Kigali, Rwanda, Alamayehu stressed that collaboration is key to overcoming these challenges. She noted that cross-border payment solutions can be improved by working with mobile networks, banks, and payment service providers.
‘We aim to deliver secure, fast, and affordable cross-border transactions through strategic partnerships,’ she said.
With Africa experiencing a surge in digital payments, Alamayehu highlighted the role of mobile operators such as M-Pesa and MTN in facilitating seamless international transactions.
‘We are seeing a major shift from cash to digital payments. By partnering with mobile operators, we are expanding financial access for individuals and businesses,’ she added.
Transforming financial transactions
Thunes, which operates in over 130 countries with 500+ financial partners, is working to reduce reliance on traditional banking systems that slow transactions and inflate costs.
‘Traditional networks make payments expensive, especially for low-income individuals. By integrating directly with payment providers, we ensure faster, more affordable, and secure transactions,’ Alamayehu explained.
She also underscored the significance of cross-border payments in supporting Africa’s SMEs, enabling them to participate in global trade.
‘Digital payments empower SMEs by offering them cost-effective solutions to compete internationally,’ she noted.
The future of Africa’s fintech industry
Looking ahead, Alamayehu identified policy reforms, partnerships, and digital innovation as key drivers of financial inclusion across the continent.
‘No single player can create change alone. Collaboration between fintechs, banks, and regulators is critical to building a sustainable financial ecosystem,’ she said.
The IFF, which brought together over 2,500 delegates, including policymakers, investors, and fintech leaders, focused on advancing financial inclusion through technology.
Wamkele Mene, secretary general of the African Continental Free Trade Area Secretariat, described Africa as a fast-emerging fintech hub.
With a compound annual growth rate of 32 percent, the continent’s fintech market is projected to reach $65bn by 2030, positioning Africa as one of the fastest-growing digital finance regions in the world.
