Africa’s digital payments economy is on the brink of unprecedented growth, with projections indicating it will reach $1.5 trillion (Sh194.1 trillion) by 2030, according to Mastercard.

This presents a golden opportunity for Kenyan firms to tap into the sector, driving economic expansion through financial inclusion, innovation and cross-border trade.

According to a Mastercard-commissioned report by Genesis Analytics, this growth will be mostly driven by the rapid advancement in internet penetration and financial inclusion, two of the fastest-growing enablers of digital payments across the continent.

“Internet penetration in Africa is projected to grow at a compound annual rate of 20 per cent, while financial inclusion is set to expand at six per cent per year,” the report stated.

Embrace contactless solutions

For investors in the sector, the rapid advancement of these trends signals a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region. Kenya, a pioneer in mobile money with platforms like M-Pesa, is well-positioned to capitalise on this growth. The increasing adoption of digital wallets, fintech solutions, and e-commerce has reshaped how businesses and consumers transact. To maximise the potential, local firms must invest in seamless digital payment systems that enhance convenience, security, and efficiency.

However, businesses must go beyond mobile money by integrating payment gateways, digital lending solutions, and blockchain technology to streamline transactions. Financial service providers, in particular, can leverage artificial intelligence and data analytics to offer tailored financial solutions that cater to Kenya’s vast informal sector.

With platforms like Jumia and Safaricom’s Masoko revolutionizing online shopping, businesses must optimise digital payment infrastructure to provide customers with frictionless checkout experiences. Partnerships with fintech firms can enable businesses to offer flexible payment options, including Buy Now, Pay Later (BNPL) services, which are gaining traction globally.