Rapid Growth of African Payment Firms by an Astounding 100% over the Past Five Years
In the ever-evolving world of cross-border payments, Africa is making a significant mark. Daniel Webber, CEO and founder of a leading platform, has highlighted a boom of key industry players on the continent. This trend is evident in the 2023 Cross-Border Payments 100 list, although the specific list is yet to be detailed.
Since 2019, several key developments and industry trends have emerged, illustrating why African companies are increasingly prominent in cross-border payments globally.
Africa's cross-border payments market is projected to reach $1 trillion by 2035, up from $329 billion in 2025, driven by a 12% annual growth rate. This surge reflects the continent's accelerating demand for faster, lower-cost digital payment solutions.
The rise of African fintech startups like Nala and Flutterwave is another significant factor. Nala, which operates in 11 African countries, recently raised $120 million, while Flutterwave now operates in 35 African nations after gaining key regulatory approvals. These companies are competing globally, especially in the remittance and cross-border payments space.
Infrastructure such as the Pan-African Payment and Settlement System (PAPSS), launched in 2022, enables real-time cross-border payments in 17 African countries, connecting over 150 commercial banks and 14 national clearance systems. This infrastructure reduces reliance on correspondent banking and increases efficiency.
Digital payment adoption is also on the rise, with over 100 million more people in Africa gaining access to digital accounts in 2024. This increased financial inclusion fuels cross-border digital trade.
Regulatory and policy support, such as the African Union's swift finalization of the AfCFTA Digital Trade Protocol Annexes, lays the groundwork for inclusive and responsible cross-border digital payments, encouraging standardization and interoperability across the continent.
Industry trends shaping African cross-border payments include a shift from legacy systems to digital rails, the formalization of informal transactions, and intra-African trade growth.
The future of cross-border payments in Africa looks promising, with digital transformation and policy alignment as key accelerators. The 2023 Cross-Border Payments 100 list, now in its fifth year, is widely recognized as the definitive benchmark of the cross-border payments industry.
The list includes six companies from Africa, an increase of 100% since 2019. These African companies, such as Orange Money, MPesa, Flutterwave, MFS Africa, Mukuru, and MTN Mobile, are headquartered in Cote d'Ivoire, Kenya, or Nigeria. They are developing cross-border payment solutions tailored to the continent's needs and infrastructure.
The demand for cross-border payment services in Africa is continuing to evolve. The list features companies across various sectors like money transfers, payments processing, ecommerce, B2B, and more. The top 100 companies are divided into seven groups: VC/growth equity backed, independently owned, banks, private equity backed, crypto, and public companies.
New government policies in Nigeria are helping to stimulate the development of digital payment solutions and the wider digital economy. Increased competition and transparency can be observed in sub-Saharan Africa, where demand for mobile money is high and nearly half of mobile money users rely on it for financial services.
In conclusion, African companies have significantly increased their presence in the global cross-border payments sector, driven by fintech innovation, digital infrastructure, regulatory reforms, and the formalization of remittance flows. These trends position Africa as a major player in the future of cross-border payments.
- The rising prominence of African companies in cross-border payments is also reflected in the lifestyle and technology sectors, as digital-focused firms like Nala and Flutterwave disrupt traditional payment systems and offer lower-cost, faster solutions.
- As the cross-border payments market in Africa rapidly expands, reaching an estimated $1 trillion by 2035, finance and technology will continue to intersect, driving innovation and efficiency in the industry and significantly impacting the continent's economic growth and lifestyle dynamics.
