With the continuous advancement of digital technology and innovation in the financial sector, Africa is experiencing a significant increase in digital payments, emerging as a strong player in the industry. Fintechs, banks, and other financial institutions are at the forefront of adopting digital transaction solutions, offering various payment methods to customers and driving financial inclusion to improve the overall customer experience for businesses and consumers.
According to the ACI Worldwide and GlobalData’s 2024 Prime Time for Real-Time report, Africa had the highest share of real-time electronic payments in 2023, accounting for 40% with 8.2 billion real-time payment transactions. This number is projected to reach 21.7 billion by 2028, with a compound annual growth rate (CAGR) of 21.2% from 2023 to 2028.
Despite these significant advancements, there is still a need for more digital infrastructure solutions to address the challenges faced by modern real-time payments. Improved infrastructure would reduce the reliance on cash, instill trust and confidence, and facilitate cross-border payments throughout the continent. As the payment landscape evolves, industry players must collaborate and leverage each other’s strengths to better serve customers and stay competitive.
A recent example of successful collaboration is the partnership between Interswitch Group, a leading digital payment and commerce company in Africa, and ACI Worldwide, a global leader in real-time payments software. Over the past two decades, Interswitch and ACI Worldwide have worked together to deploy innovative technology solutions to meet the growing demand for digital payments in Africa. The recent renewal of their collaboration in Miami, USA, signifies a new phase in their long-term partnership, elevating Interswitch’s relationship to strategic partner status across multiple markets in Sub-Saharan Africa.
This partnership is centered on integrating ACI’s real-time payment solutions into Interswitch’s technology, establishing a robust infrastructure for electronic transactions in Nigeria. This integration has paved the way for secure and efficient digital payments, including instant transactions and a significant reduction in cash reliance, thereby enhancing payment experiences in Nigeria and other parts of Africa.
Nigeria leads the real-time payments market in Africa, with 7.9 billion of the 8.2 billion real-time transactions recorded in the region in 2023. Real-time payments accounted for an impressive 82.1% of all electronic payments in Nigeria, showcasing the positive impact of the Interswitch and ACI Worldwide partnership.
Key stakeholder engagement events were recently held in Nigeria and Kenya by Interswitch and ACI Worldwide, focusing on “Modernizing Digital Payment Infrastructure for Innovation, Growth & Commercial Advantage.” These events highlighted the transformative role of both companies in shaping Africa’s digital payments landscape in the future.
Mitchell Elegbe, Founder and Group Managing Director of Interswitch Group, emphasized the advancements achieved through the partnership. “Interswitch’s longstanding partnership with ACI Worldwide has been crucial in advancing Africa’s digital payment ecosystem, driving technological progress, enhancing security, and promoting economic growth while fostering financial inclusion across the continent,” said Elegbe.
Santhosh Rao, Senior Vice President of MEASA at ACI Worldwide, shared ACI’s vision for the African financial services industry. “As a global leader in mission-critical, real-time payments software, ACI is committed to driving transformative change and sustainable growth within the African financial sector. Our goal is to empower institutions with innovative technologies that improve operational efficiency, deepen financial inclusion, and elevate customer experiences. Through strategic partnerships and cutting-edge solutions, ACI aims to catalyze digital transformation and advance the financial landscape across Africa,” said Rao.
Jonah Adams, Managing Director of Digital Infrastructure and Managed Services at Interswitch Systegra, highlighted the importance of collaboration in unlocking the pan-African payments ecosystem, promoting commerce, and driving economic growth. “Financial players must recognize the transformative potential of strategic partnerships and collaboration in boosting commerce and driving economic growth across Africa. Through value co-creation and collaboration, businesses can unlock new opportunities and facilitate seamless transactions that transcend borders,” said Adams.
The event also featured industry experts discussing insights, case studies, and opportunities in real-time payment adoption, trends, and strategies to address concerns such as cross-border payments, modernizing core payment infrastructure for banks, open banking, and securing digital transactions.
As the future evolves, the collaboration between Interswitch and ACI will continue to revolutionize Africa’s payment ecosystem with emerging technologies and innovation, promoting financial inclusion, optimizing business efficiency, and bolstering economic development across the African continent.