Africa Mobile Payments Market Size & Forecast by Transaction Value and Volume Across 70+ KPIs by Payment Method, Transaction Type, Merchant Category, Consumer Demographics, and Geography - Databook Q2 2026 Update

The mobile payments market in Africa is expected to grow by 22.0% annually, reaching US$198.8 billion by 2026.

Key Trends and Drivers

Expanding telecom-led mobile money ecosystems beyond payments into financial services

• Telecom-led mobile money platforms are evolving from basic peer-to-peer transfers into broader financial ecosystems offering credit, savings, insurance, and merchant services. In Kenya, Safaricom continues to expand M-Pesa by integrating overdraft facilities like Fuliza and savings products such as M-Shwari in partnership with NCBA Group. Similarly, in Ghana, MTN Ghana has introduced microloans and merchant payment solutions within its MoMo platform, moving beyond wallet functionality.
• Limited access to formal banking infrastructure, combined with high mobile penetration, has positioned telecom operators as primary financial access points. Regulatory support for non-bank financial services, such as Kenya’s National Payments Strategy and Ghana’s Payment Systems and Services Act, has enabled telecom-led platforms to partner with banks and expand product offerings. Growth in informal retail and digital commerce has also increased demand for embedded financial services within mobile wallets.
• Mobile money platforms are expected to increasingly compete with banks in retail financial services, particularly in credit and savings for underserved segments. Partnerships between telecom operators and banks will deepen, but telecom-led ecosystems will retain customer ownership. This shift is likely to formalize segments of the informal economy while also raising regulatory scrutiny on lending practices and consumer protection.

Scaling real-time payment infrastructure to enable interoperability across providers

• Countries are implementing interoperable, real-time payment systems to connect mobile money providers, banks, and fintechs. In Nigeria, the Nigeria Inter-Bank Settlement System operates instant payment rails (NIP) that are increasingly integrated with mobile wallets such as Opay and PalmPay. In Egypt, the central bank-backed InstaPay allows seamless transfers across bank accounts and mobile wallets, supporting QR-based payments.
• Fragmentation across mobile money providers and banks has historically limited transaction flows. Regulators are prioritizing interoperability to reduce friction and improve financial inclusion. Growth in e-commerce and merchant payments is also requiring real-time settlement capabilities. Regulators are promoting national payment switches to improve connectivity between banks, fintechs, and telecom-led systems.
• Interoperability is improving transaction flexibility, although dominant platforms continue to retain strong customer ownership in markets such as Kenya. Pricing pressure on transaction fees is expected as switching costs decline. National payment systems will become central infrastructure, enabling cross-border payment linkages within Africa, particularly under regional initiatives such as the Pan-African Payment and Settlement System.

Driving merchant acceptance through QR codes and low-cost acceptance infrastructure

• Mobile payments are increasingly being used for merchant transactions, supported by QR-based acceptance and agent networks. In South Africa, Standard Bank and First National Bank have expanded QR payment solutions integrated with mobile banking apps. In Kenya, M-Pesa’s “Lipa na M-Pesa” remains widely used among small merchants, including informal retailers.
• The high cost of traditional point-of-sale infrastructure has limited card acceptance in many African markets. QR-based solutions reduce onboarding costs for small merchants. Growth in urban informal retail and digital marketplaces is also increasing the need for low-cost acceptance solutions. Banks and fintechs are incentivizing merchant onboarding through fee waivers and bundled services.
• Merchant payments will become a larger share of mobile transaction volumes, reducing reliance on cash in urban areas. QR standardization across markets is expected to improve interoperability. However, adoption in rural areas may remain dependent on agent networks rather than direct merchant acceptance.

Expanding fintech-led wallets targeting urban consumers and digital commerce

• Fintech-led mobile wallets are gaining traction, particularly in urban markets, by offering integrated services such as bill payments, airtime, and e-commerce checkout. In Nigeria, Opay and PalmPay have expanded aggressively through agent networks and merchant partnerships. In Egypt, Fawry has scaled digital payments across online and offline channels, integrating wallet services with bill payments and merchant acceptance.
• Rising smartphone penetration and growth in digital commerce are enabling fintechs to target digitally active consumers. Regulatory frameworks in countries such as Nigeria and Egypt are allowing non-bank fintechs to operate wallets under licensing regimes. Investment into African fintechs has also supported expansion into agent networks and merchant ecosystems.
• Fintech wallets will compete directly with telecom-led mobile money platforms in urban markets, particularly for merchant payments and digital commerce use cases. Consolidation is likely as providers compete on distribution and pricing. Partnerships with banks and telecom operators will increase, but standalone fintechs will continue to focus on user experience and ecosystem integration.

Competitive Landscape

Over the next 2-4 years, competitive dynamics are expected to shift toward interoperability-driven ecosystems. Telecom-led players will retain scale in markets such as Kenya and Ghana, but fintechs and banks will gain share in merchant payments and digital commerce. Regulatory focus on licensing, consumer protection, and interoperability will reduce barriers for new entrants while increasing compliance costs. Consolidation is likely among smaller fintechs, while larger platforms expand regionally through partnerships.

Current State of the Market Defined by Telecom-Led Dominance with Increasing Interoperability

• Mobile payments in Africa remain anchored in telecom-led ecosystems, with markets such as Kenya and Ghana led by operator-driven platforms. Safaricom (M-Pesa) continues to dominate transaction flows in Kenya, while MTN Group leads in West Africa through MTN MoMo. At the same time, countries such as Nigeria and South Africa are witnessing a shift toward bank-led and fintech-led models, supported by interoperable payment infrastructure and regulatory frameworks encouraging competition.

Emerging Competition from Fintech Wallets and Bank-Led Digital Platforms

• Fintech entrants are expanding rapidly, particularly in urban markets. In Nigeria, Opay and PalmPay are scaling through agent networks and merchant onboarding. In Egypt, Fawry has built a payments network spanning bill payments and merchant acceptance. Banks are also strengthening their presence through mobile apps and QR solutions, particularly in South Africa, where institutions such as Standard Bank are integrating mobile-first payment capabilities. New entrants are focusing on niche segments such as cross-border remittances and SME payments, increasing competitive intensity across use cases.

Driving Expansion Through Partnerships, Infrastructure Investments, and Select Acquisitions

• Recent activity has focused on partnerships rather than large-scale acquisitions. Safaricom expanded M-Pesa internationally through agreements with telecom operators in Ethiopia, while MTN Group has continued to separate its fintech unit to attract external investment. In Nigeria, fintechs such as Opay have partnered with banks to enable wallet-to-bank interoperability on the Nigeria Inter-Bank Settlement System rails. Cross-border infrastructure initiatives such as the Pan-African Payment and Settlement System are also shaping collaboration across markets.

This report provides a detailed data-centric analysis of the mobile payments industry in Africa, offering comprehensive coverage of the overall mobile payments market. It includes more than 70+ KPIs, covering transaction value, transaction volume, average transaction value, and transactions per user.

The report offers an in-depth analysis of mobile payments, covering key dimensions such as payment method, transaction type, payment instrument, consumer demographics, merchant category, and geography. It further categorizes the market by revenue streams, including merchant discount rate (MDR), consumer fees, interchange and processing income, subscription-based services, and float-based revenue. In addition, the analysis captures consumer behavior across age groups and regions, along with usage indicators such as transaction frequency, average transaction value, and preferred payment methods. Collectively, these datasets provide a comprehensive view of market size, user adoption, monetization strategies, and operational performance within the mobile payments ecosystem.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to deliver a detailed view of market performance, structural trends, and growth dynamics across the mobile payments ecosystem, with a primary focus on both overall digital payments and mobile-based transaction segments.

This title is a bundled offering, combining the following 5 reports, covering 500+ tables and 700+ figures:

• Africa Mobile Payments Market Business and Investment Opportunities Databook
• Egypt Mobile Payments Market Business and Investment Opportunities Databook
• Kenya Mobile Payments Market Business and Investment Opportunities Databook
• Nigeria Mobile Payments Market Business and Investment Opportunities Databook
• South Africa Mobile Payments Market Business and Investment Opportunities Databook

Report Scope

This report provides a detailed data-driven analysis of the mobile payments market in Africa, focusing on transaction ecosystem development, digital payment adoption, and infrastructure expansion. It examines key market segments, payment mechanisms, and user behavior shaping the evolution of mobile-based financial transactions:

Africa Mobile Payments Market Size and Growth Dynamics

• Total Addressable Market
• Transaction Value
• Transaction Volume
• Average Value per Transaction

Africa Mobile Payments Market Segmentation by Payment Method

• QR Code-Based Payments
• NFC / Contactless Payments
• App-Based Transfers
• Others

Africa Mobile Payments Market Segmentation by Transaction Type

• P2P (Person-to-Person)
• P2M (Person-to-Merchant)
• P2B (Bills and Services)
• B2B (Business-to-Business)
• B2P (Business-to-Person)

Africa Mobile Payments Market Segmentation by Merchant Category

• Retail / Grocery Stores
• Restaurants / Food & Beverage
• Fuel / Gas Stations
• Professional Services
• Healthcare / Pharmacy
• Education
• Entertainment / Recreation
• Travel / Hospitality
• Transportation
• Others

Africa Mobile Payments Market Segmentation by Geography

• Urban Areas
• Semi-Urban / Peri-Urban Areas
• Rural Areas

Africa Mobile Payments Market Segmentation by Consumer Demographics

• Gen Z
• Young Millennials
• Older Millennials
• Gen X
• Boomers+

Africa Mobile Payments Market Segmentation by Payment Infrastructure

• Card Infrastructure
• Wallet Infrastructure
• Merchant Acceptance

Africa Mobile Payments Consumer Behavior and Ecosystem Performance

• Active Users
• Registered Users
• Transactions per User
• Transaction Success Rate
• Fraud Rate
• Merchant Acceptance Rate

Africa Mobile Payments Revenue Structure and Monetization

• Transaction-Based Revenue
• Commission and Distribution Revenue
• Platform and Value-Added Services Revenue
• Balance and Float Income

Reasons to Buy

• Comprehensive Market Intelligence: Gain a holistic understanding of the mobile payments landscape by integrating macroeconomic factors with payment ecosystem evolution, including digital infrastructure, regulatory frameworks, and transaction flows across instruments such as wallets, account-to-account (A2A), and card-based payments. Analyze key operational metrics such as transaction value, transaction volume, average ticket size, and user penetration across different payment use cases.
• Granular Segmentation and Cross-Analysis: Explore the mobile payments ecosystem through detailed segmentation by payment type (wallets, real-time payments, cards, BNPL), use case (P2P, P2M, bill payments, transit), customer demographics (age group, income level), merchant size (micro, SME, enterprise), and geography (urban vs. rural, tier-wise distribution). This enables a deeper understanding of evolving consumer behavior and merchant acceptance dynamics.
• Operational and Performance Benchmarking: Evaluate platform performance and competitive positioning by analyzing key indicators such as transaction success rates, average transaction value, customer acquisition cost, merchant onboarding efficiency, and active user engagement. Benchmark leading players like PayPal, Visa, Mastercard, and regional leaders such as PhonePe and M-Pesa.
• Consumer Behavior and Ecosystem Readiness: Understand how factors such as smartphone penetration, digital identity frameworks, financial inclusion initiatives, and real-time payment infrastructure (e.g., National Payments Corporation of India enabling UPI) are shaping user adoption patterns. Assess behavioral shifts toward contactless, embedded finance, and recurring digital payments across both urban and semi-urban populations.
• Data-Driven Forecasts and KPI Tracking: Access a comprehensive dataset covering 70+ KPIs, including transaction growth, user adoption, merchant acceptance rates, payment mix evolution, and infrastructure scalability. Historical and forecast insights through 2030 provide visibility into emerging trends such as cross-border real-time payments, digital wallet consolidation, and regulatory-driven innovations.
• Decision-Ready Databook Format: Delivered in a structured, analytics-ready format, the Mobile Payments Databook supports financial modeling, market sizing, and strategic planning. It enables banks, fintechs, payment processors, merchants, and investors to make informed decisions on market entry, product innovation, partnerships, and expansion strategies.