Africa’s payments industry is undergoing a profound transformation in 2025 — no longer simply reacting to global trends, but setting them in motion. What began as fintech-led disruption has evolved into a strategic realignment involving national infrastructure development, cross-border collaborations, and local innovation. The result: a redefined financial ecosystem tailored to Africa’s unique challenges and opportunities.
National Sovereignty Driving Infrastructure Overhauls
A major trend sweeping the continent is the push for payments sovereignty. Countries such as Somalia, Eswatini, Lesotho, and Comoros are investing in national payment systems, moving away from reliance on outdated, external infrastructures. Somalia, for instance, has launched a real-time payment platform equipped with QR code capabilities and digital onboarding — a bold step for a nation historically excluded from global financial systems.
Eswatini and Lesotho now operate switching systems that not only cut costs but encourage interoperability and domestic control. Even in larger markets like Egypt and Nigeria, national anchoring of payment systems is becoming a strategic priority, enabling data sovereignty and reducing foreign capital outflows.
The Reinvention of the Card
Predictions of the card’s demise in Africa were premature. In fact, cards are undergoing a renaissance — not as plastic relics, but as programmable, tokenised instruments that blend seamlessly with digital finance. In Nigeria, PalmPay plans to issue five million contactless cards via a partnership with AfriGO, targeting financial inclusion for the unbanked.
South Africa is eliminating magnetic stripe cards in favour of contactless terminals, while startups like Sudo Africa offer smartphone-first digital card solutions. In Kenya and Egypt, financial institutions are launching innovative SME and corporate card platforms integrated with accounting tools, reinforcing the card’s role as a digital finance enabler.
Embedded Finance Becomes the Norm
The age of embedded finance is firmly underway. African fintechs are integrating payment capabilities into everyday services — from retail to healthcare. Kenya’s NCBA Loop neobank allows users to borrow, manage money, and pay within a single app, while Stitch’s acquisition of ExiPay in South Africa enables seamless in-person and online transactions for merchants.
Public sector adoption is also rising. In Ethiopia, Safaricom and the Ministry of Health are digitising clinic payments via mobile wallets, showcasing embedded finance’s potential in essential services.
Financial Inclusion: From Slogan to Strategy
Inclusion in 2025 isn’t just a noble goal — it’s a core business strategy. Nigeria’s POS terminal boom, now surpassing 26 million devices, has revolutionised access for informal merchants and created millions of jobs. Partnerships like PalmPay and Jumia are simplifying digital commerce, while platforms like RealPay empower merchants with a mix of QR, POS, and mobile solutions.
The future of inclusion lies in delivering not just reach, but experience, trust, and affordability at scale.
Regulatory Maturity is Setting the Tone
As innovation accelerates, so does regulatory oversight. South Africa has introduced stricter rules for EFT payment providers, while Egypt’s rollout of Apple Pay reflects a formal embrace of digital wallets. Nigeria’s evolving cybersecurity tax debate highlights the impact of policy uncertainty on transaction volumes.
Industry groups, such as the Association of South African Payment Providers, are also emerging to guide collaboration and cost reduction across fintechs.
The Road Ahead: Intelligence at the Speed of Change
Africa’s payments industry is now at the intersection of infrastructure, innovation, and institutional evolution. As complexity and competition intensify, only those who can anticipate the undercurrents will lead the next wave of growth.
At Calleo, we offer actionable market intelligence that helps organisations navigate this fast-changing landscape — from regulation and infrastructure to technology and user behaviour.
Discover how Calleo can help your organisation stay ahead: calleosolutions.com/contact-us
