Digital payment platform set to hit $1.5 trillion in next 10 years
By Khairat Asokomhe
Following the increase in internet access and the bloom in financial inclusion rate in Nigeria and other Africa countries, digital payment is set to hit $1.5 trillion in 2030.This estimate was highlighted in a report by Genesis Analytics commissioned by MasterCard.
According to the report, Africa’s digital transformation is strengthened by rapid advancements in internet access and financial inclusion growth. Digital penetration in Africa is set to grow at a compound annual rate of 20%, while financial inclusion is 6% per year.
The report also highlighted that the significant shift of trends towards digital transactions, increases both businesses and consumers to adopt contactless solutions, thereby boosting economic participation and enhancing financial accessibility throughout the region.
Digital payment bridges the gap by providing easy access to banking services, improving efficiency as well as increases in financial inclusion.
Mastercard is collaborating with banks and other service providers across continents in strengthening digital payment landscape, drive innovation and help to advance the growth and expansion of fintech in new markets.
“For over five decades, Mastercard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development. With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and technologies to support the continent’s continued digital transformation. Our investments today will help build a more resilient economy for the future,” said Mark Elliot, division president, Africa, Mastercard.
In a report data from Nigeria Inter-Bank settlement (NIBSS), the value of electronic payment transactions grew by over 40% annually, driven by mobile wallets, internet banking, and USSD (Unstructured Supplementary Service Data) solution.
The growth of digital payments in Nigeria is transforming the way businesses, individuals, and the government engage in financial transactions.
With the use of smartphones, fintech innovation, and a young generations eager to embrace new technologies, Nigeria is positioning itself as a key digital payment platform in Africa
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