The next step for Africa’s digital economy: fast, inclusive payments

This month’s Global Findex report from the World Bank delivers a powerful message: more people than ever are participating in the formal financial system. In low- and middle-income countries, more than two billion people now have a financial account. In sub-Saharan Africa, the share of adults with an account has grown from 24% in 2011 to 58% today – a dramatic leap in just over a decade, powered by decisive policy reforms, the emergence of new service providers and new ways to make transactions.

The Findex confirms real progress in Africa’s drive for financial inclusion. But inclusion alone won’t power the digital economy; how systems are designed, governed and regulated will determine whether growth is shared.

Because owning an account is not the same as having a financial system that works for everyone. Many people, especially women, informal workers and rural families, still face high fees, limited services and fragmented platforms. The challenge now is to turn financial access into economic participation and growth.

The answer starts with payments. Specifically, with fast – or instant – payment systems that connect all users, at low cost, in real time.

Instant (also referred to as fast) payment systems move money in seconds, at low cost, between any two users: a vendor collecting mobile payments, a teacher receiving a salary, a parent sending support home, or a government distributing social assistance. When these rails are open and interoperable, allowing banks, fintechs and mobile-money providers to connect seamlessly, they become the backbone of a digital economy on which savings, credit and insurance products can ride.

Africa is already leading in many ways. Thirty-one fast payment systems are live across 26 countries. Smartphone adoption is rising rapidly, and new tools such as the Digital Connectivity Tracker are helping countries identify and close digital access gaps. But fast payments are not just about access; they are about participation, inclusion and agency in an increasingly digital economy.

Africa is already leading in many ways. Thirty-one fast payment systems are live across 26 countries

At the same time, regional systems are gaining momentum. In both West and East Africa, efforts are under way to build cross-border instant payment systems that reduce costs and connect fragmented markets. These efforts align closely with the G20 Roadmap for Enhancing Cross-Border Payments and the ambitions of the African Continental Free Trade Area. As regional economies become more connected, the ability to move money easily and affordably across borders will be essential to enabling trade, investment and mobility.

The World Bank’s Project Fastt – short for frictionless, affordable, safe and timely transactions – is helping African governments design and implement payment systems that meet their needs. Sponsored by the Gates Foundation, the initiative supports data and research, dissemination and advocacy, capacity building and individual country projects. In Sierra Leone, for example, Fastt has supported a system that enables real-time, interoperable transactions between banks and mobile money operators, eliminating the need for checks and other outdated methods.

Other support organisations such as AfricaNenda are working directly with central banks and regional institutions to help design and scale these systems. Technical assistance and financing are increasingly available to support countries in building inclusive platforms, making this an achievable step for every country on the continent. Countries can also choose to use open-source platforms to reduce the upfront cost and dependency on a small number of providers.

But this progress isn’t guaranteed; and policy is key. Fragmented platforms can trap users in closed loops that stifle competition and keep costs high. Systems that remain exclusive, limited to just banks or a narrow set of providers, slow innovation and limit participation to a handful of incumbents. High or opaque transaction costs can discourage usage and undermine trust, particularly for women and new adopters. And while many regional initiatives are promising, they need stronger coordination to ensure alignment with global standards and prevent fragmentation over time.

This is not a technology problem. It’s a policy challenge. And one that African financial leaders, especially central banks, are uniquely placed to set those rules, ensuring systems are inclusive by design and competitive by default. They can ensure open access for all licensed providers, fair and transparent pricing, and strong consumer protections. They can also align payment systems with broader development priorities, from digitising government transfers to expanding markets for agriculture, education and healthcare. They can also ensure their regulations and payment systems are aligned to regional and global standards to enable low-cost, instant cross-border payments across Africa.

This investment holds short and long-term benefits across industries. Fast payments lower transaction costs, boost small business activity, improve government service delivery and unlock digital trade. In the current economic environment, they offer one of the clearest and most cost-effective levers for accelerating growth and deepening regional integration.

The progress demonstrated by the Global Findex report shows that financial inclusion is becoming a reality, but access alone won’t drive prosperity. That will depend on whether countries build financial systems that translate inclusion into impact. For Africa, fast, inclusive payments are the next essential step – and central banks are in a position to lead that transformation.

Jean Pesme is the division director for Bangladesh and Bhutan at the World Bank Group, and Michael Wiegand is director for inclusive financial systems at the Gates Foundation.