Real-time digital payments: Powering financial inclusion across Africa

TOSIN ENIOLORUNDA

Without exception, real-time digital payments are taking over from cash as the more convenient, efficient, and reliable payment method. Global transaction volumes are projected to reach 512 billion by 2027 – a level of adoption which promises to promote financial inclusion and economic empowerment at all levels of society.

However, the transition from cash-based to digital transactions has been quicker in some regions than others. In Africa, for instance, cash has remained a popular payment method due to customers’ preference for instant value exchange. This is especially important for low- or irregular-income households as they look to pay bills and meet other financial obligations. Similarly, businesses with low working capital, including those operating in the informal economy, can often display a preference for cash.

However, cash is cumbersome and economically limiting. Notably, cash needs to be physically carried everywhere – rendering it prone to theft and inadequate for any transactions which transcend in-shop purchases. It is also unfit for functions such as domestic remittances and local trade between cities. Over-reliance on cash, therefore, constrains market liquidity and stunts economic potential.

Cash also creates a hefty burden for central banks due to the cost of printing, transporting, and protecting physical volumes of cash. In 2020, the Central Bank of Nigeria spent ₦58.6 billion on printing cash – and yet more on transportation, security, and other infrastructure requirements to manage it.

There is, however, an alternative which enables instant value exchange without the logistical challenges perennially attached to cash-based transactions. Real-time digital payments offer the best of both worlds: immediate settlement, efficiency, and improved security. Gone are the days of customers needing to physically visit a bank branch and fill out a form to move their money. Now, all transactions – big or small – can be completed and managed digitally.

The development of robust fintech infrastructure in Africa means real-time digital payments are reshaping the continent’s entire payments ecosystem, from consumer bill settlements to cross-border B2B commerce – offering lower transaction fees; enabling new business models; and promoting financial inclusion.

The benefits are substantial. For consumers, real-time digital payments mean instant access to funds, greater convenience, more financial flexibility, and easier access to credit and other financial services. For businesses, it means enhanced cash flow management and transaction processing, improved operational efficiency, and a smoother customer experience. Digital payments can also mitigate money laundering and fraud risks and decrease the amount of working capital needed for daily operations – empowering informal enterprises, which are often the lifeblood of local economies.

In essence, real-time digital payments enable more transparent financial ecosystems, which create a virtuous cycle of financial empowerment for previously underbanked individuals and businesses – promoting economic growth at the national and sub-national level.

Real-time digital payments are already an established financial reality in some African markets. Nigeria is a leader in this area, not just on the continent, but globally too – its NIBSS Instant Payments (NIP) system is the sixth-largest real-time payments system in the world, processing billions of naira daily and more transactions yearly than equivalent payment systems in the U.S.

NIP is the invisible financial infrastructure powering every financial interaction in Nigeria. The use of NIP transfers for everyday, lower-value transactions is becoming more common as real-time digital transactions gradually usurp cash as the country’s favoured payment method. In 2024, more than 12 billion instant money transfers were completed in Nigeria – up from 9.7 billion in 2023 – and the rising adoption of this payment method in the Nigerian marketplace has been transformative for SMEs, saving them an estimated $296 million in 2021.

As the adoption of digital payments continues to grow, the Nigeria Inter-Bank Settlement System (NIBSS), in June 2025, moved to future-proof the current system by launching the National Payment Stack (NPS), a next-generation digital payment infrastructure compliant with ISO 20022 – the global messaging standard for secure and data-rich financial transactions. Only a few days ago, NIBSS announced the first successful transaction on the NPS, signalling the dawn of a new era of speed, innovation, and interoperability in payments.

This move represents a significant, demonstrable shift towards building a more inclusive financial landscape, one where the barriers to entry are lowered for underserved communities. It promises to engender a dynamic ecosystem where innovative services are accessible to all citizens irrespective of their location, language, or faith.

With continued government backing, real-time digital payments will continue to shape the commerce ecosystems of Africa’s present and future – especially as trust and adoption continue to grow. Sustaining this positive trajectory depends on harnessing pioneering fintech platforms, like Moniepoint, to connect higher volumes of consumers and enterprises to this exciting financial world, which has the power to transform businesses and lives.

The future for real-time digital payments in Africa is bright, and the benefits will be felt by all: boosting economic potential and output; supporting trade and value exchange within and between countries; and promoting financial inclusion continent-wide.

Tosin Eniolorunda is the founder and Group CEO, Moniepoint Inc, Africa’s all-in-one financial platform, empowering businesses and their customers with seamless banking, payment, credit, cross-border and business management tools.