Fintech
Real-time payments set for massive growth
Instant transactions will soon play a bigger role in Africa’s evolving financial landscape, writes KATLEGO MAPHAI, CEO of Yoco.
As we move into 2025, Africa’s payments landscape is experiencing significant transformations, driven by technological advancements, shifting consumer behaviours, and innovative business models. These changes are reshaping how financial transactions are conducted across the continent.
Digital payments are seeing unprecedented global growth. According to Worldpay’s 2024 Global Payments Report, the volume of real-time payment transactions reached 266.2-billion in 2023, marking a year-over-year growth of 42.2% and representing 19.1% of all electronic transactions globally. This surge underscores the increasing reliance on efficient, real-time solutions that are quickly becoming mainstream.
Key Trends Shaping Africa’s Payment Landscape
1. Real-Time Payment Infrastructure
ACI Worldwide’s 2024 report projects that real-time transactions will rise to 575.1-billion by 2028 globally, demonstrating a compound annual growth rate of 16.7% from 2023. This growth signifies a shift towards real-time payments accounting for 27.1% of all electronic payments, emphasising the demand for instant transaction processing.
2. Digital Wallets and Payment Methods
The adoption of digital wallets is surging, accounting for 50% of point-of-sale transactions and 70% of e-commerce spend, driven by their convenience and enhanced security features.
3. B2B Virtual Payments Growth
The expansion of digital and virtual payments, particularly virtual card payments, is projected to grow over 250% by 2028. This growth is fuelled by their increasing use in managing accounts receivables and payables, as highlighted in Research and Markets 2024 report.
Yoco is spearheading the integration of payment solutions with comprehensive business management tools, ensuring that businesses of all sizes can enhance operational efficiency and customer engagement. Here are Yoco’s latest innovations:
The Yoco App: Released in August 2024, the reimagined Yoco App allows business owners to manage their operations on the go, offering features like refunds, sales, staff management, cash advances, and reports from a single platform. The app has evolved from a card machine companion to a robust business management tool.
Yoco Counter: This all-in-one POS system for small businesses combines a sleek widescreen tablet and software, offering easy setup and integration with other Yoco devices for seamless ordering, product management, and customer-facing payments.
TABLE by Yoco: A revolutionary restaurant operating system designed to streamline operations with real-time insights, inventory management, and automated tasks. It includes features such as tableside ordering, kitchen management, and cloud-integrated payments, enhancing efficiency and reducing customer wait times.
Looking towards 2026 and beyond, several developments are anticipated: Blockchain-based payment systems are expected to achieve mainstream adoption.
Launches of Central Bank Digital Currencies (CBDCs) in major African economies are likely to redefine monetary policies and financial practices. Enhanced interoperability between various payment systems will facilitate seamless transactions across the continent.
The growth trajectory for Africa’s payments landscape is robust, supported by technological innovation and regulatory frameworks that foster a conducive environment for the further evolution of payments. As these trends unfold, the future of payments in Africa appears not only promising but also pivotal to the global payments’ ecosystem.
The focus remains on developing solutions that address local needs while meeting global standards, ensuring a robust, inclusive and a dynamic financial ecosystem for all Africans.
* Visit the Yoco website here.
