BTA Admin Mastercard is accelerating the shift toward a fully digital economy in Africa, expanding its acceptance network by 45% in 2025 as it pushes deeper into informal markets and small business ecosystems.
The expansion signals a broader transition in how payments are used across the continent—moving away from expensive hardware-driven systems to low-cost, software-based solutions that are reshaping everyday commerce.
Digital payments move into the informal economy
At the centre of this shift is Mastercard’s push to eliminate traditional barriers to entry. Solutions such as Tap on Phone are allowing merchants to convert smartphones into payment terminals, removing the need for costly point-of-sale infrastructure.
The approach has enabled more than 1.8 million small businesses and gig workers to accept contactless payments, extending digital transactions beyond formal retail into street markets and micro-enterprises.
Through its SME-in-a-Box initiative, Mastercard is also bundling tools such as virtual cards and business management software into a single platform. This enables merchants to manage both incoming and outgoing payments digitally, reducing reliance on cash and creating more integrated financial ecosystems.
Strategic partnerships have further embedded digital payments into supply chains, particularly within the fast-moving consumer goods sector, while collaborations with institutions like the Small and Medium Enterprises Development Agency of Nigeria are addressing financial literacy gaps among small business owners.
Security and trust take centre stage
As digital adoption grows, trust remains a critical factor. Mastercard is strengthening its infrastructure through tokenisation, artificial intelligence, and real-time fraud detection systems.
Its Decision Intelligence platform analyses vast volumes of transaction data in milliseconds to identify suspicious activity, while Safety Net technology is designed to detect and block large-scale cyber threats.
The company has invested over $10.7 billion globally in cybersecurity and AI since 2018, preventing an estimated $50 billion in potential fraud losses. It has also partnered with the Nigeria Data Protection Commission to build local capacity through initiatives such as the Virtual Privacy Academy.
Scaling fintech through infrastructure and interoperability
Mastercard says sustainable fintech growth in Africa will depend on more than innovation alone. Key enablers include trusted infrastructure, regulatory compliance, and interoperability across payment systems.
Programs like Start Path and Product Express are designed to help fintech startups scale by connecting them to global payment networks and reducing time-to-market for new financial products.
These efforts are increasingly important as Africa’s digital payments market is projected to reach $1.5 trillion by 2030.
AI and cross-border payments reshape the landscape
Artificial intelligence is playing a growing role in fraud prevention, risk management, and customer experience. Mastercard’s AI systems are being used to optimise transaction routing and improve decision-making across financial institutions.
At the same time, cross-border payments are emerging as a key priority. Mastercard Move, the company’s global money movement platform, connects financial institutions across more than 200 countries and 150 currencies, enabling faster and more transparent transactions.
Recent partnerships with banks including Fidelity Bank Nigeria and Access Bank are extending these capabilities to African businesses, helping them participate more effectively in global trade.
Closing the gaps for long-term growth
Despite strong momentum, structural challenges remain. Mastercard identifies key priorities including expanding payment acceptance in rural and informal markets, improving system reliability, strengthening cross-border infrastructure, and developing robust digital identity frameworks.
As Africa’s digital economy evolves, these foundational elements are expected to determine how effectively businesses and consumers transition from cash-based systems to fully digital financial ecosystems.
