Africa’s Digital Payments Surge Calls for Interoperability and Inclusivity

Significant advancements in Africa’s digital payments sector have been recognized by industry leaders, marking a shift from traditional cash transactions to instant electronic payment systems. In a recent interview, Elbelamachi, the Regional Managing Director for Francophone Africa at Network International, underscored the need for interoperability and inclusivity to enhance this transition across the continent.

The UAE-based payments and financial services firm, established in 1994, is witnessing tangible progress through the development of interoperable systems, especially highlighted in East Africa. Organizations such as the East African Community (EAC) and the Intergovernmental Authority on Development (IGAD) are engaged in dismantling barriers to cross-border digital payments. Despite these advances, challenges remain that hinder optimal interoperability.

Elbelamachi stated, “We are living an exciting chapter for Africa’s payments story. When I started working in payments, cash was king almost everywhere. Today, in cities like Abidjan, Dakar, and Douala, you will see people paying for a taxi with a QR code or sending money instantly to family in another region.” This shift illustrates Africa’s capacity to leapfrog traditional banking models, yet obstacles persist in achieving seamless cross-border payment solutions.

The executive noted that African countries must establish systems enabling businesses to transfer money across borders as swiftly and affordably as they transport goods. With the African Continental Free Trade Area (AfCFTA) set to facilitate trade transactions, it is crucial to address the current inefficiencies in payment systems. “In West Africa, I have spoken with small exporters who can get a shipment to a neighbouring country in a day, but payments can take three to five days. That gap holds back trade,” Elbelamachi emphasized.

To enhance digital payment interoperability, Elbelamachi acknowledged existing challenges that need to be effectively addressed. The World Bank reported in June that achieving full digital payments interoperability in Africa requires alignment of various systems and regulations. He elaborated on the complexities within Francophone Africa, where discrepancies in standards, legal frameworks, and data privacy regulations complicate the landscape.

“Public trust is another critical factor, as users need to feel secure about their personal data,” he added. The benefits of improved interoperability are significant, leading to faster customer onboarding, reduced fraud rates, and expanded access to financial services.

Elbelamachi emphasized the importance of digital payments as part of the broader digital public infrastructure (DPI) being developed by many African nations. He pointed to positive momentum, citing countries like Senegal and Benin that have made strides with national ID systems and interoperable platforms. “In some cases, governments are even making all social benefit payments digital, thereby boosting transparency and integrating more people into the financial system,” he noted.

In Nigeria, the integration of a national digital ID system is strengthening social protection schemes aimed at supporting impoverished households. Elbelamachi suggested incorporating biometric solutions into national digital ID systems to enhance identity verification, drawing attention to an example in rural Guinea. “Biometrics can be a powerful equalizer,” he said, highlighting how individuals without formal identification can now access essential financial services through fingerprint or facial recognition linked to a national ID.

He believes that integrating biometrics securely into ID programs can significantly enhance financial inclusion and bolster security measures. Network International aims to reinforce Africa’s digital payments ecosystem by providing comprehensive solutions that extend beyond simple transaction capabilities.

“In Francophone Africa, we are essentially building the ‘rails’ that allow the rest of the ecosystem to operate smoothly,” Elbelamachi explained. The company has invested in secure processing platforms to enable banks, fintechs, and merchants to prioritize customer service over payment logistics. Additionally, they offer fraud detection tools, loyalty solutions, and data insights to assist partners in scaling their operations.

The United Nations Economic Commission for Africa (UNECA), in collaboration with the World Bank and the digital payments advocacy group AfricaNenda, is advocating for accelerated adoption of inclusive and interoperable digital payment systems to enhance financial inclusion across the continent.

Elbelamachi acknowledged the growing sophistication of fraud, particularly with the emergence of generative AI tools. He stressed the need for robust security measures to be integrated from the design phase of digital payment systems. “Fraud prevention must be part of the initial design, not something you add later. Real-time transaction monitoring, AI-powered anomaly detection, and strong customer authentication are essential,” he asserted.

To strengthen security, he suggested that governments designing DPI frameworks should prioritize three key strategies: first, embed security from the outset; second, ensure inclusivity by involving women, small businesses, and rural communities in the design process; and third, commit to both domestic and cross-border interoperability.

Elbelamachi also highlighted the vital role of private sector partnerships in driving innovation and responding to customer needs. “Fintechs develop brilliant solutions that meet local realities, while established banks provide the trust and scale needed for adoption,” he stated.

By fostering collaboration between the private sector and governments, the potential for robust, inclusive ecosystems that facilitate digital payments can be realized. “Every time we make it easier for a merchant to accept digital payments or a consumer to transact securely, we are helping create opportunity, build trust, and grow the digital payment ecosystem,” Elbelamachi concluded.