From Unbanked to Empowered: How Africa is reimagining payments to drive financial inclusion
By David King (pictured), VP MEASA, ACI Worldwide
Financial inclusion in Africa stands at a critical crossroads. Africa boasts a young, tech-savvy population and rapid mobile adoption, setting the stage for digital financial services to leapfrog traditional banking – but barriers such as physical infrastructure, regulatory fragmentation, and socioeconomic factors continue to exclude large segments of the population from financial access, especially women and rural communities.
The lack of access to banking and digital services fuels the persistent dominance of cash in Africa. According to the ACI Prime Time for Real Time 2024 report, more than half of the transactions made in South Africa were cash-based. The continent’s youthful demographics hold immense potential to drive financial inclusivity, tempered by deep-rooted barriers that continue to lock millions out of formal financial access.
Financial Inclusion Goes Beyond Financial Access
Financial inclusion goes beyond financial access – it’s about ensuring that individuals can effectively use affordable financial services that are delivered in a responsible and sustainable way to improve their lives. Without financial literacy, digital infrastructure, and consumer protection, access alone can be shallow, offering limited empowerment and even potential risk.
Recognizing that financial literacy is essential for economic empowerment and inclusion, the Central Bank of Nigeria collaborated with the Nigerian Educational Research and Development Council to integrate financial literacy into the school curriculum to instill financial discipline and promote financial inclusion.
The idea that financial inclusion is a human rights consideration has often dominated the conversation. But what may be underappreciated is that inclusion is a powerful economic engine. When people gain access to secure, efficient, and affordable financial services, they’re more likely to save, invest, and grow businesses. This translates into broader economic growth, an increase in GDP and more resilient local economies.
Real-Time Payments Provide a Modern Gateway to Inclusion
Real-time or instant payments—the ability to move money between individual accounts quickly and efficiently with little friction—open a critical gateway through which everyone can access financial services, with or without a traditional banking account. Whether that’s a worker accessing wages instantly, a small business managing cash flow more effectively, or a government delivering aid without delay, these aren’t just efficiency gains – they’re steps toward greater financial inclusion and better quality of life.
According to ACI Worldwide’s Real-Time Payments: Economic Impact and Financial Inclusion 2024 report, real-time payments are projected to contribute more than $15 billion in additional GDP growth to Nigeria and South Africa by 2028. The share of the banked population in Nigeria is expected to increase by 6.5% between 2021 and 2028, placing Nigeria in the top five nations worldwide for inclusion uplift. By 2028, South Africa—already at 84% banking penetration—could add 425,000 previously excluded individuals to the financial system.
If we want these systems to fulfill their promise, we must prioritize interoperability, support community banks in onboarding, and ensure that the consumer is top of mind. Improving financial inclusion should be the cornerstone of every payment strategy: enabling access, building trust, and expanding opportunity.
Cross-Border Payments Are an Inclusion Imperative
Cross-border payments in Africa have historically been hindered by inefficiencies, delays, and high transaction costs. The Pan-African Payment and Settlement System (PAPSS)—integrated with 150 commercial banks and backed by 15 central banks on the continent—is changing that. By facilitating instant cross-border transactions in local currencies and enabling payments across African borders through a common African market infrastructure, PAPSS is a game-changer for accelerating economic collaboration and financial inclusion across the continent.
The surge in cross-border transactions is fueling Africa’s economic mobility. According to the African Diaspora Network, remittances to Africa exceeded $100 billion in 2024. Digital remittances are integral to Africa’s economy and a key enabler of local development and resilience, providing a lifeline for millions of African families.
Advancing Inclusion as a Force for Good
Market fluctuations, regulatory debates, Artificial Intelligence (AI) breakthroughs, and the proliferation of cryptocurrency and stablecoins tend to command the headlines for financial services. But amidst all the buzz, financial inclusion must remain core to our mission. Without it, innovation risks reinforcing the inequalities by serving only those who are already well-served while broadening the divide for the unbanked and underbanked.
Banks and financial institutions have a critical role to play. Their connection to customers, deep local relationships, and trust uniquely position them to bring underserved individuals into the financial mainstream. For banks, focusing on financial inclusivity means aligning product development and partnerships with access goals. This means embracing real-time technologies, rethinking legacy models, and partnering with fintechs and infrastructure providers who share the vision for a more accessible financial system.
For regulators, it means creating policies that encourage responsible innovation and equitable access. And for the industry, it is a collective responsibility to collaborate and build a sustainable and more inclusive financial ecosystem that serves the greater good. As we navigate the future of finance, let’s stay grounded in this fundamental truth: financial inclusion is, and always was, the goal. It’s not a footnote to progress – it’s the foundation for prosperity. And we must build it together.
