Mobile Money and FinTech in Africa: Moving from Access to Useful Finance

A market entering a new phase

Mobile money has become a daily financial infrastructure for millions of people across Africa. In 2025, mobile money services processed more than $2 trillion in transactions worldwide, a 23 percent increase from 2024, according to the GSMA’s 2026 report. [1]

Growth does not mean that every use case is mature. Wallets are still widely used to send and receive money, but they are increasingly used for merchant payments, bills and income collection. The next task for FinTech is to turn transaction scale into deeper financial services.

From payments to small-business tools

Merchants need more than an account that receives payments. They need reliable records, working capital, supplier payments and simple management tools. Payment platforms already hold data that can help understand business activity, provided it is used with customer consent and strong data-protection rules.

The challenge is to offer credit without reproducing the risks of informal lending. A FinTech can assess sales patterns, but it must also account for seasonality, income shocks and transaction costs. An automated score should not become an unexplained decision that customers cannot challenge.

Interoperability is becoming essential

A closed wallet is convenient for customers on one network, but it limits connections with banks, other operators and public services. Interoperability would allow a user to choose a recipient without understanding the infrastructure processing the payment.

That connection requires technical standards, proportionate KYC rules and coordinated supervision. It should also lower the cost of small transactions. Without lower fees and a simple user experience, interoperability will remain a technical promise rather than an everyday service.

A second FinTech wave

Boston Consulting Group estimates that African FinTech revenues could reach about $65 billion by 2030. Payments remain the engine, but the next phase is expected to include lending, savings, insurance, business services and financial infrastructure. [2]

This second wave will not be only a competition between applications. It will depend on digital rails, identity systems, secure data sharing and regulators that allow innovation without weakening consumer protection.

Trust must grow with transaction volume

As transaction volumes rise, fraud becomes more expensive. Users need to identify legitimate agents, recover compromised accounts and understand why a payment was blocked. Operators and FinTech firms need investment in cybersecurity, real-time detection and accessible complaint procedures.

Digital finance will be inclusive only if women, microenterprises and rural communities can use it at a reasonable cost. The African Development Bank’s Africa Digital Financial Inclusion Facility places these groups at the centre of its mission, with investment in infrastructure, regulation and products. [3]

An opportunity that needs structure

Africa has already built payment networks capable of reaching millions of people. The next challenge is to make them interoperable, secure and productive. Mobile money can become a gateway to a fuller financial system, but that transition will require clear rules, stronger data protection and products designed around real customer needs.

References

[1] GSMA, The State of the Industry Report on Mobile Money 2026. https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-for-development/gsma_resources/the-state-of-the-industry-report-on-mobile-money-2026/

[2] Boston Consulting Group, Beyond Payments: Unlocking Africa’s Second FinTech Wave, 2026. https://www.bcg.com/publications/2026/beyond-payments-unlocking-africas-second-fintech-wave

[3] African Development Bank, Africa Digital Financial Inclusion Facility. https://www.afdb.org/en/adfi

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