A structural shift is redefining the continent’s financial technology landscape. No longer driven by efforts to close gaps with advanced economies, the sector is entering a phase marked by rapid scaling of digital financial services and a growing influence on how global fintech models are designed and deployed.
What began as a push to address financial exclusion has matured into a complex and fast-expanding ecosystem, with digital payments at its core. Across multiple markets, fintech platforms are redefining how money is stored, transferred and accessed, often leapfrogging traditional banking models and, in some cases, outpacing developments in more established financial systems.
This shift is captured in a recent report by Boston Consulting Group (BCG), which identifies Africa as the fastest-growing fintech market globally. The report projects that fintech revenues on the continent could grow thirteenfold to reach about $65 billion by 2030, underlining both the scale of opportunity and the structural transformation already underway.
The study titled “Beyond Payments: Unlocking Africa’s Second FinTech Wave,” argues that Africa’s fintech evolution is entering a more complex phase, one that will be defined less by access and more by depth, integration and long-term value creation.
The report identifies payments as the primary driver of fintech growth across Africa, noting that a significant proportion of firms on the continent operate within payments and lending. These segments have also attracted the majority of investor funding, underscoring their central role in the sector’s expansion.
“Payments have been the clear engine of this growth. More than half of African FinTech firms operate in payments and lending, and over 60 percent of equity funding has flowed into these segments,” the report stated.
This dominance is further reflected in mobile money usage, with Africa accounting for nearly three-quarters of global transaction volumes. The report attributes this scale not only to innovation, but also to gaps in traditional banking infrastructure, which have created strong demand for alternative financial channels.
According to the report, the first phase of fintech expansion on the continent was largely driven by consumer-focused platforms that extended financial services to previously underserved populations. Early platforms such as M-Pesa and MTN MoMo were cited as examples of how mobile wallets achieved widespread adoption by offering simple and accessible alternatives to conventional banking systems.
The report notes that a newer generation of fintech players has since built on this foundation by reducing transaction costs and embedding digital payments into everyday activities. Platforms including Wave in West Africa, as well as PalmPay and OPay in Nigeria, were highlighted as key contributors to this expansion, demonstrating the potential for rapid scale when services are aligned with user needs.
However, despite these gains, the study points to uneven adoption patterns across the continent. Mobile money usage has reached an estimated 40 percent of adults in sub-Saharan Africa, but the pace and structure of adoption vary significantly by region.
In East Africa, telecom-led models have driven high levels of penetration, with mobile money integrated across a broad range of use cases, including peer-to-peer transfers, merchant payments and government services. In contrast, markets where banks have played a more central role have recorded slower uptake, with usage often concentrated around basic transactions.
The report notes that several African markets remain at an early stage of development, characterised by limited integration between mobile money platforms and formal banking systems, as well as a narrow range of use cases. These structural differences, it explains, have resulted in uneven levels of ecosystem maturity across the continent.
Even in relatively advanced mobile money markets such as Ghana, Kenya and Uganda, access to formal credit remains shallow. Citing World Bank data, the report highlights that more than half of borrowing in these markets still occurs through semi-formal or informal channels, underscoring the gap between transactional access and deeper financial inclusion.
While Africa’s first wave of fintech growth successfully established widespread access to digital payments, the report argues that the next phase will depend on how effectively this infrastructure is utilised to drive broader economic activity.
“The second must make those rails economically productive,” the report stated, noting that existing systems such as the Nigeria Inter-Bank Settlement System Instant Payment (NIP) and Kenya’s PesaLink have already enabled strong adoption of peer-to-peer transactions across multiple markets.
However, it cautions that continued growth in person-to-person transfers alone is unlikely to significantly improve productivity or expand access to credit. Instead, the next stage of development will require deeper digitisation of business transactions, wider merchant integration, and the embedding of financial services within value chains.
In this context, the report emphasises the need to shift focus from consumer payments to business-to-business and public-sector flows, where the economic impact is likely to be more substantial.
Cross-border payments are also identified as a critical area for expansion. Initiatives such as the Pan-African Payment and Settlement System (PAPSS) signal growing ambition to support trade under the African Continental Free Trade Area. However, progress remains constrained by persistent challenges, including high foreign exchange costs, fragmented compliance frameworks and limited interoperability between national systems.
As a result, intra-African trade continues to face higher costs and inefficiencies than existing infrastructure ambitions would suggest.
Beyond payments, the report points to a gradual shift in how fintech firms generate value. The increasing volume of transaction data, combined with the expansion of digital identity systems and the emergence of alternative lending platforms, is creating new opportunities to build scalable credit markets.
Nevertheless, structural limitations remain significant. Weak credit bureau systems, limited financial histories for small businesses and high capital costs continue to restrict the growth of risk-based lending across many markets.
To address these constraints, the report outlines a set of institutional priorities required to convert payment scale into broader financial depth.
A key recommendation is the development of fully interoperable digital public infrastructure. This includes seamless integration between wallets, banks and payment switches, alongside the expansion of digital identity systems and standardised application programming interfaces. The report warns that continued fragmentation will raise costs and limit competition.
It also highlights the importance of transforming transaction data into a reliable credit infrastructure. Strengthened data-sharing frameworks, alongside emerging open banking reforms in countries such as Nigeria and Kenya, are expected to improve data portability and support more effective lending models.
Regulatory clarity is identified as another critical factor. According to the report, simplified licensing structures, consistent know-your-customer requirements and predictable supervisory frameworks are essential for reducing uncertainty and attracting investment.
In addition, the report stresses that trust and system resilience must evolve alongside adoption. Consumer protection mechanisms, fraud prevention systems and cybersecurity capabilities are described as foundational requirements for sustaining long-term growth.
Access to capital remains a further constraint. While early-stage funding has supported the rise of fintech startups across the continent, the availability of growth-stage financing, particularly in local currency, will determine whether these businesses can scale sustainably.
The report draws comparisons with global markets to illustrate how regulatory design influences outcomes. Brazil’s PIX system is cited as an example of infrastructure-led coordination, achieving rapid adoption through central bank oversight and mandatory interoperability. Similarly, India’s Unified Payments Interface (UPI) demonstrates how open infrastructure and standardised APIs can support large-scale ecosystem expansion.
Africa, the report notes, reflects elements of both models. Rwanda has pursued a coordinated approach to digital public infrastructure, while Kenya initially prioritised market-led innovation before moving toward interoperability. Nigeria, meanwhile, has developed strong domestic payment systems while continuing to refine its regulatory framework.
Ultimately, the report concludes that the next decade of Africa’s fintech growth will be shaped less by the pace of startup creation and more by institutional decision-making.
“The next decade will be shaped less by start-up velocity and more by institutional choice,” it stated, adding that while the continent has demonstrated its ability to scale digital payments rapidly, the long-term structure of access, competition and integration across markets remains unresolved.
