A stark divide in Africa’s digital transformation has come into sharp focus, with a new Visa report revealing that only 8 million merchants across the continent accept digital payments, leaving a staggering 44 million businesses reliant on cash transactions.
The findings, unveiled by Visa’s Sub-Saharan Africa head Aida Diarra, highlight a paradox: while Africa leads the world in mobile money adoption—accounting for 70% of global activity—its vast informal sector remains stubbornly disconnected from formal digital ecosystems.
The mobile money revolution, driven by fintech firms, telecom giants, and micro-lenders, has undeniably reshaped how Africans send, save, and spend money. Over 700 million mobile money accounts exist in Sub-Saharan Africa alone, enabling everything from bill payments to microloans via basic smartphones. Yet this progress hasn’t bridged the gap for small merchants, from Lagos market stalls to Nairobi kiosks, who still cling to cash due to high transaction fees, limited internet access, or sheer distrust of digital systems.
“We’re in the infancy of this journey,” Diarra acknowledged, pointing to fragmented infrastructure and regulatory hurdles. But she struck an optimistic note, citing Africa’s knack for “leapfrogging” outdated technologies. Just as mobile phones bypassed landlines, she argued, cryptocurrencies and blockchain solutions could sidestep traditional banking barriers in markets like Nigeria, Kenya, and South Africa, where crypto adoption already rivals global leaders.
Cryptocurrencies, she noted, are gaining traction not just as speculative assets but as practical tools in nations grappling with volatile currencies and capital controls. In Zimbabwe, for instance, where hyperinflation eroded trust in the local dollar, Bitcoin has become a lifeline for cross-border trade. Similarly, Ghanaian traders are increasingly using stablecoins to hedge against the cedi’s fluctuations.
However, Diarra cautioned that growth hinges on clearer regulations. “Regulators now see this isn’t a fad,” she said, referencing recent moves by Kenya and South Africa to draft crypto frameworks. Without guardrails, scams and fraud could undermine trust—a critical risk in regions where many still equate “digital” with “unsecure.”
The report’s most urgent takeaway, though, lies in the untapped potential of Africa’s 44 million cash-only merchants. While mobile money has empowered consumers, small businesses remain excluded from the digital economy’s benefits, such as access to credit or e-commerce platforms. Experts argue that closing this gap requires affordable POS systems, offline payment solutions, and literacy campaigns to demystify digital tools for wary entrepreneurs.
“Imagine a woman selling tomatoes in Dakar who can’t accept mobile payments because she fears hidden fees,” said Senegalese fintech CEO Aminata Sow. “Her business stays small, and the economy loses out.” Solutions like voice-based payment confirmations or zero-transaction-cost periods could lure such merchants online, proponents suggest.
As Africa’s digital payments race accelerates, the challenge isn’t just innovation—it’s inclusion. Until vendors in bustling markets and remote villages can seamlessly join the digital fold, the continent’s much-touted financial revolution will remain half-written. For now, cash is still king, but the crown is slipping.
