As part of this evolution, the industry’s big players are moving beyond being providers of voice and data services to become full-fledged technology companies.

What Safaricom did with M-Pesa is one of the clearest examples of a telco transforming into a true ‘techco’. For this telco, the move was driven almost entirely by the success of its mobile money platform, M-Pesa.

M-Pesa started out as a simple tool for sending and receiving cash but has since grown into a fully fledged fintech ecosystem that is central to Kenya’s economy.

In fact, a 2024 GSMA report, suggests that the broader mobile-money ecosystem increased Kenya’s GDP by up to 8.6 % in 2023 compared to what it would have been without it.

For Safaricom, this evolution shows how a telco can become a technology company by solving real-world problems at scale but still with connectivity as the foundation of its offering.

Unfortunately, legacy systems can prevent telcos from evolving into tech-driven companies because they are rigid, expensive to maintain and can’t support the speed and flexibility needed to provide modern digital services.

For example, many operators still rely on outdated OSS/BSS stacks that make it difficult to get a single view of the customer or automate even basic processes.

Legacy OSS/BSS solutions were built for simple use cases – SMS, voice, data – and can’t really handle the variety of services that define the modern ‘techco’.

These monolithic systems are so complex that trying to introduce even a single change requires months of work, redesigns and change requests. Not only does this slow down operations, but it can also hinder flexibility and dramatically drive up costs. Also, remember that legacy systems aren’t API-enabled.

This means that they are very siloed, which limits communication between platforms and makes expanding into new product areas incredibly complex.

To unlock the ‘techco’ vision and expand the breadth of products and services under a single telco brand, operators need to find the right technology partners to help them innovate at the speed the market now demands.

This transition is more than just an architectural shift, it’s about providing the operational foundations needed for telcos to become ‘techcos’.

In the case of the OSS/BSS solutions mentioned above, this entails leveraging API-first architecture so that telcos can seamlessly partner with fintech providers, content platforms, IoT ecosystems, and enterprise technology vendors.

The right technology partner can help operators deliver convergent billing, which allows telcos to invoice diverse service types in a single customer bill, and modular, cloud-native design so that operators can scale specific components independently.

And where telcos want to venture into the mobile money space, the right technology partner will help them to access real-time transaction processing, which is essential in a market where sub-second response times can have a negative impact on usability.

Across the telecommunications industry, competition has intensified dramatically as more and more players enter the market and as regulators push prices down.

This trend reduces margins for operators and has also ended the era when telcos could rely on guaranteed, high-profit returns.

As a result, the industry has had to find creative ways to tap into new revenue streams.

At VAS-X, we have spent over two decades helping operators across Africa adapt and evolve in response to changes in the market.

For telcos looking to expand their offerings and become ‘techcos’, VAS-X can help to replace legacy systems that are stalling innovation and make it possible to launch and monetise a wide range of new digital services.

The post Why Telcos Must become TechCos to Compete in a Digital-first World appeared first on Tech | Business | Economy.

The cheapest option for your specific transfer depends on where you’re sending from, where the money is going, how much you’re moving, and how quickly it needs to arrive.

Understanding how these services make money helps you avoid overpaying. Some charge upfront fees with transparent exchange rates. Others advertise zero fees but mark up the exchange rate.

The total amount your recipient receives matters more than how the costs are structured.

This guide breaks down the services by category and explains what to look for when comparing options.

Digital-first remittance platforms

These companies operate primarily online and through mobile apps. They tend to have lower costs than traditional services because they don’t maintain physical locations.

Africhange

Africhange operates across key remittance corridors from Canada, the UK, and Australia into West and East Africa, with a focus on cost efficiency and speed.

Part of Africhange’s appeal lies in its regulatory footing. Its Nigerian subsidiary holds an International Money Transfer Operator licence from the Central Bank of Nigeria, which allows the company to process remittances directly rather than through third-party intermediaries.

This structure shortens settlement timelines and reduces avoidable costs once funds are received in Nigeria.

Africhange currently supports transfers from Canada to Nigeria, as well as to other markets including Ghana, Kenya, Benin, Togo, and Senegal. The platform also supports multiple currencies on both the sending and receiving sides, which makes it easier to manage cross-border payments without constant conversion headaches.

LemFi

LemFi has emerged as one of the fastest‑growing platforms for remittances to Africa. It combines low cost with a smooth app experience that works well for people sending money from North America, the UK, and Europe.

Users open an account, verify their identity, and then send money directly to bank accounts or mobile wallets in countries like Nigeria, Ghana, Kenya, Cameroon, Senegal, and others. Most corridors carry zero transfer fees, and many transfers arrive within minutes.

You can hold balances in US dollars, British pounds, Canadian dollars, and other major currencies, then convert and send at competitive exchange rates.

The platform is regulated in the UK and Canada and holds licences to operate remittances into key African markets. Funds typically reach a recipient’s bank or mobile wallet in minutes. A loyalty or rewards component may appear, providing additional value for frequent senders.

Remitly

Remitly is one of the long‑standing players in cross‑border money transfers. It operates through a simple app and web interface that walks you through sending money step by step. When you use Remitly you choose between two ways to send. One option keeps fees low but takes a little longer.

The other delivers faster if timing matters more than cost. You can fund transfers with a bank debit or credit card, and your recipient can get money straight into a bank account or popular mobile money wallets used in many African countries.

WorldRemit

WorldRemit is similar to Remitly but supports a wider range of payout methods in many countries across Africa. In addition to bank deposits and mobile money, WorldRemit sometimes offers cash pick‑up options at local partners if the recipient prefers that. The interface is straightforward. You enter the amount, pick where you are sending it, choose how the recipient will collect the cash, and the app shows fees and delivery times before you confirm.

WorldRemit tends to settle transfers within a few hours for most corridors, though it can vary by country and bank processing times.

Wise

Wise focuses on transparency and cost efficiency. Unlike many banks or money transfer services, it uses the real mid‑market exchange rate and charges a single, upfront fee. This means the recipient gets the exact amount shown before you confirm the transfer, without hidden markups.

Wise is particularly suitable if keeping costs low is your priority, and you can wait for the transfer to process. Delivery times vary depending on the destination bank, but most transfers arrive within a few hours to a couple of days. The platform supports multiple currencies and countries, making it convenient for repeat transfers with predictable pricing.

Traditional networks

These established services have extensive physical networks across Africa. They’re useful when recipients need cash pickup or live in areas without reliable banking infrastructure.

Western Union

Western Union has one of the largest agent networks in Africa, making it a reliable option for recipients who may not have access to a bank or mobile money account. The service supports cash pickup, bank transfers, and mobile money in many countries.

Cash pickup is fast, often available within minutes, but it is more expensive than other payout methods. Bank transfers and mobile money can be cheaper, though delivery times may vary depending on the destination and local partners. Fees are generally higher than digital-first platforms, and exchange rates include a markup.

You can send money through the Western Union website, mobile app, or at a physical agent location. Online bank transfers are typically less costly than cash pickup, making them the better option when speed is not the top priority.

MoneyGram

MoneyGram operates across Africa with a large agent network, covering many urban and semi‑urban areas. The service allows recipients to collect cash quickly, often within minutes or a few hours, though timing can vary depending on the location.

Transfers can be sent online, via the MoneyGram app, or at agent locations, including major retailers. In addition to cash pickup, the platform supports bank transfers and mobile money in many countries. Fees for cash pickup are sometimes slightly lower than Western Union, but the cost depends on the sending corridor and payment method.

MoneyGram provides a reliable alternative for recipients without bank accounts or mobile wallets, while also offering multiple ways to receive funds for those who prefer digital options.

Mobile Money and regional platforms

Mobile money has transformed how people send and receive money in Africa. In several countries, more adults now have mobile money accounts than traditional bank accounts. This widespread adoption has made it easier to move money quickly, securely, and without relying on banks.

Mobile Money overview

Mobile money lets people receive, store, and spend money using just a mobile phone, without needing a bank account.

Major providers include M‑Pesa in Kenya and Tanzania, MTN Mobile Money across several countries, Orange Money in West Africa, and Airtel Money in multiple markets.

Most international transfer services now support sending money directly to mobile money accounts. This method is often faster and cheaper than using bank transfers or cash pickup, making it a popular choice for both senders and recipients in some countries.

Wave

Wave is a mobile money platform that operates in Senegal, Côte d’Ivoire, Burkina Faso, Mali, and Benin. Transfers from the US to Wave accounts typically carry no transfer fees. The exchange rate is the main cost for the sender.

Recipients need a Wave account to receive funds, and creating one is straightforward. Wave functions as both a transfer service and a mobile money wallet, allowing users to send, receive, and spend money through the app.

Coverage is currently limited to the West African countries where Wave operates, but within those markets, the platform is fast, simple, and easy to use.

Sending money to Africa is more efficient now than it was years ago. Digital platforms are driving down costs and forcing greater clarity in pricing. Whether you prioritise cost, speed, or convenience, there are options that fit your needs. Check fees and exchange rates before you hit send, and choose the right tool for your corridor and frequency.

The post Best ways to send money to Africa in 2026  appeared first on Tech | Business | Economy.

Mbabaie described the blockchain sector as a rapidly expanding “borderless, multi-billion-dollar industry,” already valued at more than $3 billion and growing at an unprecedented pace, and emphasized that Africans, particularly young Nigerians, must urgently position themselves to benefit from this global shift.

“You can be in Gombe or Makurdi and still earn globally. It’s a borderless environment,” he said, stressing that the blockchain ecosystem offers opportunities without the need for visas, relocation, or traditional entry barriers.

He explained that decentralized systems represent a fundamental redesign of digital infrastructure, one where no single corporation, government, or financial institution wields absolute control. Instead, authority is distributed across globally dispersed nodes and validators operating under transparent, verifiable rules enabled by blockchain and peer-to-peer technologies.

This, he noted, stands in sharp contrast to Africa’s prevailing centralized systems.

While acknowledging the contributions of centralized platforms like Opay, Moniepoint, and M-Pesa in advancing financial inclusion, Mbabaie warned that their architectures leave millions vulnerable to outages, policy disruptions, and systemic failures.

He noted that blockchain networks, by comparison, rarely experience shutdowns due to their global distribution. “If a node in America goes down, the one in Gombe or China keeps the system running. That’s the beauty of the space,” he said.

Beyond reliability, Mbabaie underscored digital sovereignty as decentralization’s most critical advantage. It enables financial transactions that cannot be arbitrarily blocked, digital identities that cannot be erased, and infrastructure that Africans themselves can build, own, and profit from.

“Africa owns the rails, not just rides the train,” he declared, urging stakeholders to envision a continent where Africans write the rules of their digital economy.

He broke down the foundational principles of decentralized systems, no gatekeepers, transparent rules, and universally distributed data, highlighting their superiority to traditional financial structures that can manipulate money or restrict access, adding that blockchain offers immutable transparency: “Any transaction can be seen. Any file can be tracked. Nothing disappears.”

Citing Bitcoin’s more than 200,000 active wallets and the resilience of decentralized internet initiatives like Wikipedia’s distributed network, Mbabaie argued that Africa must prepare for a future powered by smart contracts, AI-integrated protocols, and globally interoperable blockchain systems.

To fast-track this transition, he outlined three urgent policy actions for African governments and regional tech bodies:

• Data localization and mandatory interoperability to ensure critical digital infrastructure is hosted locally and free from vendor lock-in.
• A risk-based licensing regime for Virtual Asset Service Providers and a mandatory 90-day token classification window aligned with the VASPA framework.
• A ₦50 billion Sovereign Compute Fund to support the development of African-built Large Language Models (LLMs) and on-chain AI agents capable of competing in the global AI race.

Mbabaie praised Nigeria’s recent progress in establishing regulatory and compliance structures for blockchain adoption and reiterated that the nation still leads Africa despite earlier missed opportunities, and urged young innovators, policymakers, and industry players to act decisively.

“We are at a defining moment,” he said. “If Africa embraces decentralized systems now, we can unlock long-term economic empowerment, digital independence, and true global competitiveness.”

The post AfriTECH 5.0: Chukwuemeka Mbabaie Explains Why Africa Needs Decentralized Digital Sovereignty appeared first on Tech | Business | Economy.

The upgrade, dubbed Fintech 2.0, moves Africa’s second-largest mobile money service to a cloud-native architecture, allowing it to process 6,000 transactions per second at launch, with the potential to double as demand rises.

“The scheduled M-PESA upgrade was successfully completed and all services fully restored. All M-PESA services are now available. We look forward to serving you better and providing you with seamless experiences,” the telco said in a tweet.

The migration addresses long-standing limitations. The previous system, operating near a 4,500-transactions-per-second ceiling, left little room for growth. Fintech 2.0 leverages microservices hosted on Huawei Cloud, enabling Safaricom to update individual components without taking the platform offline, a major step for reliability and speed.

Sources familiar with operations say engineers are monitoring live transactions to detect irregularities, a process expected to last several days. Other insiders indicate that the operator now aims to accelerate integrations with banks, fintechs, and developers, opening the door for new APIs, merchant credit products, and cross-border payment solutions.

M-PESA handles more than 21 billion transactions annually, serving over 50 million users across Africa, including payments, remittances, credit, and e-commerce. The upgrade is expected to strengthen its operations as a regional financial backbone, particularly for small businesses and cross-border trade, aligning with goals under the African Continental Free Trade Area (AfCFTA).

Competition is getting higher. Airtel Money and other digital-first fintechs have steadily expanded, putting pressure on M-PESA’s top place. The upgrade is not just a technical improvement, but aims to maintain leadership across the market.

In modernising its infrastructure, Safaricom positions M-PESA as a more agile, scalable, and partner-friendly platform. This change reflects the vision first backed by late CEO Bob Collymore, who framed the company’s future as a platform play rather than a closed service. 

With digital payments growing ever more competitive, Fintech 2.0 could enhance mobile money in Africa.

The post Fintech 2.0: Safaricom M-PESA Upgrade Boosts Mobile Money Performance Across Africa appeared first on Tech | Business | Economy.

This strategic move addresses the unique financial landscape of the region, where a significant portion of the population still remains unbanked.

This integration will further Unlimit’s offering for Tanzanian businesses, with their solution enabling access to a comprehensive suite of national, regional and global payment methods. 

It will also provide merchants access to a vast new customer base of M-Pesa’s 60 million, Mixx by Yas’ 20 million and Airtel Money’s 41.5 million users, simplifying transactions and minimising customer churn, while helping to create a smoother and more inclusive payment experience.

Tanzania is quickly emerging as a regional digital payments hub, with the annual transaction value of its mobile money market now exceeding $80 billion.

This shift comes as cash payments become less common and total digital transaction volumes surge, with Unlimit recording a 76% increase between 2023 and 2024.

“Tanzania is one of the fastest-growing economies of the decade, and it’s now entering a new era of digital payments maturity,” said Irene Skrynova, Chief Customer Officer at Unlimit. 

“By continuously expanding our services and integrating dominant local payment methods, we ensure that both banked and unbanked users are fully supported. This positions us to seamlessly enable international brands to enter and scale in this thriving market, while empowering Tanzanian businesses to connect with their target audiences effortlessly.”

The expansion of Unlimit’s services in Tanzania follows their successful launch into the nation in Q2 2024, with the receipt of their Bank of Tanzania licence and the opening of a regional office. 

The integration of these mobile-money services expands Unlimit’s existing Tanzania offerings and underscores its commitment to supporting merchants with a wide range of payment options across Africa. 

These include local and international cards across Africa, such as Visa and Mastercard, and Verve in Nigeria; mobile money solutions such as M-Pesa and Airtel Money in East Africa; USSD payments in Nigeria; as well as bank transfers through all regional banks.

The post Unlimit Integrates M-Pesa, Airtel Money to Tap into Tanzania’s $80bn Mobile Payments Market appeared first on Tech | Business | Economy.

With this, Safaricom is focusing on the growing share of Kenya’s freelance economy, where over 1.5 million workers now earn in dollars, pounds, and euros. Most of them receive their wages via PayPal. 

For years, they’ve had to endure slow, browser-based transfers or rely solely on Equity Bank’s instant withdrawal service. Now, there’s a quicker, app-based alternative in their pocket.

Integrated as a mini app within the M-PESA super app, the PayPal withdrawal service marks the first time users can access PayPal funds without needing to log in through external web portals. 

What used to be a clunky, multi-step process now takes just minutes and a few taps. Transfers typically process within two hours, far quicker than the one-to-three-day delays experienced with many bank-linked options.

For those navigating global work from Kenya, especially writers, developers, designers, and transcribers, this is a game-changer. A typical freelancer in Kenya earns between KES 1,000–3,000 per hour for transcription or up to KES 10,000 per article. 

With faster access to PayPal funds, managing liquidity and meeting local obligations becomes far easier.

The timing aligns with M-PESA’s role in Safaricom’s financial engine. In the year ending March 2025, mobile money revenue soared 15.2% to KES 161.1 billion ($1.25 billion). 

That jump was largely driven by a 20.3% spike in chargeable transactions per user, now averaging nearly 38 per month. Meanwhile, active customers grew 10.5% to 35.82 million.

Safaricom is no longer just a telco; it’s building a comprehensive financial ecosystem. The PayPal integration joins an expanding list of app-based financial services, from government payments to SME tools like Pochi la Biashara. 

Each service is tailored to a different income segment, but the target is the same; user retention and transaction growth.

To reiterate that goal, the app offers users real-time foreign exchange previews, biometric login for added security, and an in-app feedback system. Wallet limits have also been updated, users can now hold up to KES 500,000 ($3,875), with a daily transaction ceiling set to match.

Still, Equity Bank maintains a competitive edge when it comes to bulk withdrawals. It offers up to $10,000 per transaction, with no daily limits, and serves many high-volume sellers and cross-border e-commerce traders. 

But for individual freelancers and micro-entrepreneurs, M-PESA’s in-app alternative is faster, easier, and doesn’t require a bank account.

We can’t ignore the role of global rivals either. Platforms like Wise and Payoneer have been gaining ground in Kenya, offering better exchange rates and fewer restrictions than PayPal. 

But despite the alternatives, PayPal is still the most widely used gateway for digital freelancers, and this integration could help Safaricom capture more of that international money flow.

In the wider context, this could enhance inclusive digital finance in Kenya. As of December 2024, 84.8% of Kenyan households had access to mobile money. M-PESA alone processed KES 2.3 trillion ($17.83 billion) through its app in 2024. 

Safaricom’s goal now is to lock in that top spot and this latest development shows it’s willing to build the tools freelancers and remote workers actually need.

The post Safaricom Rolls Out Direct PayPal Withdrawals via M-PESA App appeared first on Tech | Business | Economy.

With mobile money platforms, real-time payment systems, and fintech innovations at the forefront, cryptocurrency is now taking center stage in reshaping the future of transactions.

Instant payments, also known as real-time payments, refer to money transfers that are processed and settled within seconds, 24/7, including weekends and holidays.

Unlike traditional banking transfers, which can take hours or even days, instant payments offer speed, transparency, and convenience.

Across Africa, this innovation is powered by both public and private sector players, creating infrastructure that enables individuals and businesses to send and receive funds instantly using mobile phones, apps, or USSD codes.

In Nigeria, the Central Bank-backed NIBSS Instant Payment (NIP) system allows for seamless transfers across banks and fintech platforms.

According to NIBSS, electronic payment transactions soared to an all-time high of N1.08 quadrillion in 2024, up from N600 trillion in 2023.

Similarly, South Africa operates a real-time payment framework under Real-Time Clearing (RTC) via BankservAfrica.

In East Africa, platforms such as M-Pesa, Airtel Money, and Tigo Pesa have long led the mobile money revolution.

Regionally, Pan-African platforms like PAPSS (Pan-African Payment and Settlement System), spearheaded by Afreximbank, are enabling cross-border instant transactions in local currencies.

While traditional systems lay the groundwork, blockchain technology is fast-tracking Africa’s digital payment revolution.

Digital assets like Bitcoin and Ethereum are also becoming popular, many young Africans are choosing cryptocurrencies for sending money, saving, and shopping.

Regulatory uncertainty has long hampered crypto growth. However, a major breakthrough came on March 29, 2025, when President Bola Ahmed Tinubu signed the Investments and Securities Act 2024 into law.

The Act officially recognises digital assets and cryptocurrencies as securities, bringing them under the purview of the Securities and Exchange Commission (SEC).

At the forefront of this crypto-driven shift is Zabira Digital Services Ltd, a Nigerian fintech powerhouse redefining how Africans engage with digital finance.

Founded in 2019 by CEO Isaac John, the platform offers a comprehensive suite of financial services from crypto trading and gift card exchanges to bill payments and fiat transactions—all within a user-friendly mobile app.

Zabira’s encrypted wallet gives users full control over their assets, empowering them with private keys and multi-layered security.

Users can buy, sell, and hold digital assets like USDT and Ethereum, pay for services directly from their crypto balances, or convert gift cards to cash without switching platforms.

What sets Zabira apart is its focus on simplicity and transparency. The platform avoids unnecessary complexities, offering competitive rates and low fees while providing detailed logs for every transaction.

To get started using Zabira, users can download the app via Android, and iOS. Signing up is fast and easy—just create an account, verify your identity, and you’re ready to explore a world of instant, secure, and borderless financial services all in one app.

*Chinwe Taiwo, is a senior fintech reporter in Lagos

The post How Instant Payments Work in Africa appeared first on Tech | Business | Economy.

As of 2023, over 350 million adults in Sub-Saharan Africa remain unbanked, even as more than 600 million people use mobile money. Yet, sending money across borders still comes with high friction and even higher costs; remittance fees average 8.2%, the highest globally.

Globally, momentum is building around Open Payments, with more than 40 financial institutions and digital wallets actively exploring or integrating the standard. Open Payments-enabled transactions are already taking place across over 60 countries, demonstrating its growing global reach. 

This article dives deep into the Open Payments standard, what it means for Africa’s digital future, and how the continent’s mobile-first innovation and youth-driven tech culture make it the ideal launchpad for a more inclusive financial system.

Introduction to Open Payments

Digital payments have come a long way, but they’re still more complicated than needed, especially if you’re sending money across borders, between platforms, or without a bank account.

Today, most people rely on third-party processors like PayPal or Stripe to handle payments. These work well, but they come with strings attached: high fees, long wait times, and limited control over how money moves.

Now imagine if making a payment online was as simple and open as sending an email. No matter which provider you use or where you are in the world, you’d just need the other person’s “address” and the payment would go through instantly.

That’s the vision behind Open Payments

Open Payments is an open standard powered by the Interledger Protocol (ILP) that allows money to move between different financial systems, just like the internet allows information to move between websites and devices.

At the heart of Open Payments is a simple idea: You should be able to send and receive money easily, regardless of what platform you’re using.

Here’s how it works, in plain terms:

1. Payment Pointers

Open Payments replaces long, complex banking details with something simple and human-readable called a Payment Pointer. Think of it like a username or web address for receiving payments—something like: $alice.wallet.com or $yourname.africa

A Payment Pointer is not a wallet address in the crypto sense. Instead, it points to a web-accessible endpoint (usually a URL) hosted by your financial service provider or wallet. When someone wants to send you money, their system queries this endpoint to discover how to complete the payment securely using the Interledger Protocol (ILP).

2. One Connection, Many Possibilities

Without Open Payments, every app or service you want to send money from has to build a separate connection to every possible bank, wallet, or mobile money provider. That’s a nightmare.

With Open Payments, a single integration gives you access to any provider that supports the standard. No need to write hundreds of custom APIs. Just one.

3. Secure, Consent-Driven Transactions

You’re always in control. When someone wants to send or pull funds from your wallet, they have to make a request, and you decide what’s allowed. You can approve a single transaction, set limits, or even authorize recurring payments with specific rules.

Think of it like granting Netflix access to charge your card monthly, but safer, more flexible, and not tied to credit cards at all.

4. No More Middlemen (Unless Necessary)

Open Payments reduces reliance on traditional intermediaries, which usually add fees and delays. If currency conversion or settlement routing is needed, the system finds the best path automatically using Interledger. But you’re not stuck paying unnecessary layers of fees just to send $10 across borders.

5. Works for Everyone, Not Just Banks

You don’t need a traditional bank to use Open Payments. Whether you’re using a mobile wallet, a crypto app, or a community savings platform, as long as your provider supports the standard, you’re in the network.

That’s a game-changer for billions of people around the world who are underbanked or unbanked.

The Current State of Open Payments in the World and Africa

As digital payments evolve, the global financial ecosystem is slowly but surely pivoting toward open, interoperable systems, and Open Payments is at the center of that transformation.

While adoption is still in its early stages, there is growing momentum around the world as both traditional financial institutions and fintech innovators begin to embrace the Open Payments standard and the Interledger Protocol (ILP).

A Growing Global Ecosystem

Open Payments is not a product—it’s an open standard. This means any institution, app, or wallet can adopt it without licensing fees or proprietary gatekeeping. And while we’re still early in the adoption curve, some notable players and platforms have already taken the lead.

• GateHub: One of the first digital wallets to support Open Payments globally. It facilitates cross-currency transactions using ILP and offers payment pointer functionality.
• Fynbos: A wallet provider in South Africa, Europe, and North America that enables Open Payments transfers between Fynbos accounts, with future plans to connect with other networks like GateHub.
• Interledger Pay: A live implementation that lets users send and request money using wallet addresses, showcasing Open Payments’s ability to work across platforms.
• Chimoney: A Canadian Fintech company has integrated Open Payments to enable seamless wallet-to-wallet transfers via Interledger payment pointers. More than just a wallet, Chimoney allows payouts to over 120 countries, supporting a wide range of disbursement options, including bank accounts, mobile money, and gift cards. This global reach demonstrates how Open Payments can be embedded within large-scale financial systems to deliver inclusive, programmable, and borderless payouts.

These early implementations are proof of concept for what’s possible, but widespread adoption still requires deeper integration by banks, mobile money providers, and governments.

Current Metrics and Trends

• As of early 2025, over 40 financial services companies have expressed interest or are in the process of integrating Open Payments.
• Open Payments-enabled transactions have occurred in over 60 countries, primarily through test wallets and early-adopter platforms.
• Payment pointers—human-readable wallet addresses—have been issued to tens of thousands of developers through tools like the Interledger Test Wallet and GitHub starter kits.
• The Interledger Foundation has announced over $21 million in investments and strategic partnerships to expand interoperable payment solutions globally, signaling a growing institutional commitment to Open Payments and its ecosystem.
• Developer interest is surging: repositories like interledgerjs and open-payments have seen significant spikes in stars, forks, and community contributions since mid-2024.

This traction is being driven in part by the protocol’s promise of cost savings, security, and inclusivity, especially in low-income and underbanked regions.

The Situation in Africa

Africa has long been a leader in mobile-first financial innovation. Yet, despite the success of mobile money platforms, the continent still grapples with fragmented financial infrastructure, high remittance fees, and lack of interoperability across borders.

This makes Africa a prime use case for Open Payments.

• 600 million mobile money users across Sub-Saharan Africa.
• 8.2% average remittance fee to Sub-Saharan Africa.
• 350 million unbanked adults in the Sub-Saharan African Region, with most relying on informal savings groups or community wallets.
  

Today, even leading mobile money systems like M-Pesa, MTN Mobile Money, and Airtel Money still require closed-loop integrations. This means a user on one platform can’t always send funds to someone using another unless they pass through banks or costly intermediaries.

Open Payments offers a compelling alternative. By introducing a standardized way to send money across providers, it reduces friction, lowers costs, and boosts access.

While there are no fully live, cross-provider Open Payments deployments in Africa yet, wallets like Fynbos in South Africa and Open Payments-based projects led by African developers are laying the foundation.

The Unique Opportunity for Africa

Africa has always done things a little differently when it comes to money. While the West focused on banks and cards, Africa leapfrogged into mobile money. That’s how platforms like M-Pesa became household names and helped millions send, spend, and save without ever stepping into a bank.

But here’s the problem: most of these systems don’t talk to each other.

You can’t easily send money from your mobile wallet in Nigeria to someone’s bank account in Ghana. Even within the same country, users on different platforms often have to jump through hoops to transfer funds. It’s like trying to send an email from Gmail to Yahoo and needing five apps to do it.

That’s where Open Payments changes the game.

Why Africa is the perfect place for Open Payments

1. Cross-border is our daily life
   Africa is made up of 54 countries, and millions of people live, work, and trade across borders. Whether it’s traders in Cotonou sending money to Lagos or a freelancer in Nairobi getting paid from the UK, cross-border payments aren’t a “nice to have”—they’re essential. Open Payments is built exactly for that: simple, low-cost, borderless payments.
2. Mobile-first means we can move fast
   Most Africans already use mobile wallets. With Open Payments, these wallets can be upgraded to speak the same financial language without replacing them. It’s not about building something new from scratch. It’s about connecting what we already have.
3. A young, tech-savvy generation
   With the continent’s median age at just 19, Africa has the youngest population on Earth, and that means a lot of builders, developers, and early adopters ready to shape the next wave of fintech.

This is a generation that already uses crypto, virtual cards, social commerce, and gig platforms. Open Payments is the natural next step—a tool that matches their global mindset.

What makes Open Payments so powerful for Africa?

• No more vendor lock-in: A wallet or app that supports Open Payments can connect to any other one that does, too. Users aren’t stuck with one provider.
• Fewer fees, more control: By cutting out unnecessary middlemen, Open Payments reduces costs and gives users more transparency on who gets what.
• One wallet address, many use cases: Just like an email address, users can share a wallet address and get paid from anywhere (apps, websites, employers, family abroad).
• It works across banks, wallets, and mobile money: Open Payments isn’t tied to a single network. Whether it’s a bank in Lagos or a mobile wallet in Kigali, it all just works if it’s built on the standard.
  

Early Market Impact and Case Studies

Open Payments isn’t just a promising idea, it’s already being used to solve real financial problems for real people. Across Latin America, the Caribbean, Africa, and Asia, developers, startups, and even government-backed platforms are building practical tools powered by Open Payments.

Here are some of the examples of how Open Payments is changing lives, facilitating financial inclusion, and empowering and growing businesses today:

BessPay – Helping Creators Get Paid Instantly

In the Caribbean, BessPay is reshaping how digital creators earn income. Instead of waiting 30 days for payouts or losing up to 30% in platform fees, creators using BessPay are receiving earnings instantly through Open Payments and payment pointers. 

The platform supports real-time micropayments, tipping, and content monetization tools that allow creators to cash out in local bank accounts, mobile money, or digital wallets. Early adopters have seen a 40% increase in revenue retention, as BessPay puts power and profit directly in the hands of its users.

Snake Nation – Decentralizing the Creator Economy

Snake Nation, a platform built for multicultural creators across Africa and Latin America, has integrated Open Payments into its VNM wallet to decentralize the creator economy. By removing intermediaries and empowering artists to receive direct payments from their fans, 

Snake Nation has enabled real-time tips, paywalled content, and creator tokens—all powered by Interledger. Thousands of creators have already benefited from instant settlements across borders, and the platform continues to grow its user base with a mission to help artists thrive financially regardless of their geography.

ThitsaWorks – Bringing Digital Payments to Rural Myanmar

In Southeast Asia, ThitsaWorks has tackled financial exclusion in Myanmar by digitizing rural microfinance institutions through Open Payments and Mojaloop.

With over 2 million rural users connected, ThitsaWorks’ solution automates loan disbursements and repayments via mobile wallets and bank integrations.

The system has reduced loan processing times by over 50% and made financial services more accessible for users who had previously relied on cash transactions.

Their integration with Mojaloop also opens the door to cross-border transactions, improving financial resilience in economically vulnerable regions.

Cámara de la Gente – Cross-Border Remittances for Rural Mexico

Cámara de la Gente in rural Mexico is leveraging Open Payments to power a cross-border remittance hub for small credit unions and community banks.

By reducing dependency on traditional remittance services, which often charge fees upwards of 8%, the platform has successfully cut costs by over 20% while enabling instant account-to-account transfers.

This innovation is particularly impactful in rural towns where access to digital banking remains limited, giving families faster and more affordable ways to receive support from loved ones abroad.

CryptoSavannah – Loyalty Programs, Reimagined

In East Africa, CryptoSavannah is rethinking how loyalty rewards work. Instead of letting loyalty points sit unused, their Universal Wallet enables customers to earn, transfer, and redeem rewards across a network of partner merchants.

Built on ILP and Open Payments, the platform supports multi-format value, including fiat, crypto, and store credit.

Since the launch, participating retailers have reported a 2x increase in loyalty point redemption rates and improved customer retention, thanks to the flexibility and interoperability of their rewards system.

Mojaloop – Government-Grade Open Payments Infrastructure

Finally, Mojaloop is serving as the national-grade infrastructure layer for Open Payments in countries like Tanzania, Rwanda, and Myanmar.

Through partnerships with governments, central banks, and financial service providers, Mojaloop has facilitated billions of dollars in financial flows while enabling seamless transactions across banks, wallets, and MFIs.

Its integration of Interledger allows for cross-ledger interoperability, and its deployment has driven significant improvements in financial inclusion, particularly among unbanked and underbanked populations.

Challenges and Barriers to Fully Implementing Open Payments in Africa

As promising as Open Payments is for financial transformation, the road to its widespread adoption in Africa is filled with friction. Below are the major barriers slowing progress, each rooted in a unique blend of infrastructure gaps, regulatory complexity, and user behaviour:

1. Weak Digital Infrastructure

Many African regions, especially rural areas, lack consistent Internet access and mobile coverage. Open Payments thrives on low-latency, always-on connectivity, but with only 43% internet penetration continent-wide, real-time financial services remain out of reach for millions. Slow networks and frequent power outages make reliable access to wallets and APIs a significant challenge.

2. Regulatory Uncertainty

Open Payments operates across borders, platforms, and financial layers, but most African countries still don’t have policies that reflect this reality.

While Nigeria has introduced Open Banking regulations, the majority of other nations are either stuck in sandbox mode or still adapting legacy laws. This creates hesitation among banks, FinTechs, and wallet providers, who fear running afoul of compliance rules.

3. Trust and Data Privacy Concerns

Even when infrastructure is in place, user trust is another story. People are rightfully cautious about linking apps to their money, especially in environments where data breaches and financial scams are common.

Despite Open Payments offering explicit consent and granular control, the fear of “giving an app access to your account” remains a major psychological barrier.

4. Limited Incentives for Legacy Institutions

Large banks and incumbent financial service providers don’t always see the upside of embracing Open Payments. Many prefer to operate closed systems and charge high fees for access.

Since Open Payments prioritizes openness and interoperability, some institutions feel it threatens their business model. Without competitive pressure or regulatory nudges, adoption by these players may lag.

5. Low Awareness and Technical Literacy

The concept of Open Payments—wallet addresses, Interledger, GNAP (Grant Negotiation and Authorization Protocol) is still new to many businesses, developers, founders, and users.

Financial literacy remains low in many communities, and technical understanding among SME owners and local agents is still developing. Without grassroots education and easy-to-use tools, even the best technology won’t gain traction.

6. Persistent Financial Exclusion

As of 2023, over 350 million adults in Sub-Saharan Africa are still unbanked. While mobile money has made impressive strides, it doesn’t fully bridge the gap. Open payments require at least a digital wallet or interoperable account. For people without access to identity verification, smartphones, or formal onboarding channels, this is a non-starter. The foundation for access must be laid before innovation can scale.

My Perspective on Open Payments

Over the past year, my journey with Open Payments has led me to several realizations that shape not only how I view financial infrastructure but how I believe we should build it. Here’s my perspective distilled into key insights:

1. Open Payments is not just a technology—it’s a mindset shift

This is a departure from proprietary rails and fragmented systems. It’s about reimagining financial infrastructure as open, interoperable, programmable, and inclusive—the way email revolutionized communication.

2. It empowers both users and developers

With Open Payments, users control who can access their accounts, what they can do, and for how long, without exposing sensitive information. At the same time, developers no longer need to build complex, one-off integrations. One protocol, one standard, many use cases.

3. It lowers the barrier for innovation

Startups, NGOs, and indie developers can now build payment-enabled apps without becoming licensed financial service providers. This radically changes who can build in the financial space and what they can build.

4. It’s already real, and it’s already working

Throughout my 30 Days of Open Payments series, I showcased real-world case studies, wallets using payment pointers, apps using Interledger, and communities benefitting from reduced transaction friction. This isn’t hype; it’s already happening.

5. Education is key to adoption

In my session titled “Open Payments Made Simple—No-Code Solutions and Open-Source Innovations,” presented physically at Microsoft Reactor DevConnect  2025, I introduced over 100 participants, including open source enthusiasts, non-technical professionals, and developers, to the power and simplicity of Open Payments. The session demonstrated how anyone, regardless of technical background, could begin building financial tools using open standards and no-code platforms. Once people realized how accessible the technology is, a wave of interest and experimentation followed, proving that demystifying the protocol is the first step to widespread adoption.

6. Africa is poised to lead this revolution

We’ve already leapfrogged outdated infrastructure with mobile money and digital wallets. Open Payments gives us the chance to leapfrog again into borderless, low-cost, accessible financial ecosystems.

7. My mission is to bridge knowledge and action

Through my workshops, articles, and daily content, I aim to translate complex standards into usable ideas for businesses, developers, founders, and policymakers. My goal is to make Open Payments not just understandable but actionable.

The Future of Open Payments

The world of payments is shifting, and Open Payments is at the heart of this transformation. In the next five years, we won’t just talk about interoperability and financial inclusion; we’ll live it.

Imagine a future where sending money from Lagos to Lima is as easy as sending a tweet. Where a teenager in Nairobi can get paid instantly for designing a logo for a startup in Berlin. Where a nonprofit in Accra receives donations from supporters in Tokyo without paying 12% in fees to legacy platforms. This is not just possible—it’s inevitable.

Open Payments is laying the foundation for a wallet-to-wallet world. A world where financial applications speak a universal language, where developers build once and scale globally, and where people—not institutions—control the flow of their money.

We’re moving toward a future where:

• Wallet addresses become your global financial identity, recognized across apps, platforms, and borders.
• Microtransactions flourish, powering new economies from creators getting paid per view to learners tipping educators.
• Developers build plug-and-play financial apps without needing banking licenses or backend acrobatics.
• Startups from underserved regions compete on equal footing with Silicon Valley, thanks to infrastructure that no longer discriminates based on geography.
• Consent, transparency, and security aren’t features—they’re defaults. Users decide who can access their money, when, and how much.

But here’s the most exciting part: Africa isn’t catching up; we’re positioned to lead. Our mobile-first ecosystems, youth-driven innovation, and demand for financial alternatives make the continent a natural breeding ground for Open Paymentss breakthroughs. What M-Pesa was to mobile money, Open Payments could be to the next generation of financial technology across the continent.

This isn’t a distant dream. We’re building it now. From Interledger-enabled wallets in South Africa to developer workshops in Nigeria to early-stage adoption in Ghana, the ecosystem is growing. Standards are maturing. Communities are forming. Builders are shipping.

The rails of global finance are being rewritten, and Open Payments is the ink. So whether you’re a policymaker, product manager, backend engineer, or founder, the invitation is open. Open to build. Open to innovation. Open to include.

The question is no longer if Open Payments will shape the future—it’s who will shape Open Payments.

And if you ask me, it should be us.

About the Author

Babatunde Hammed is a seasoned professional with a rich blend of expertise in operations, project management, business development, and compliance. With a proven track record of optimizing business processes and delivering strategic growth, he has made significant contributions to global organizations, particularly in the fintech and Open Payments space.

As the Head of Operations at Chimoney, Babatunde plays a pivotal role in transforming the way people send, receive, and manage money across borders. He leads cross-functional initiatives focused on enabling financial inclusion, ensuring compliance with global regulatory frameworks, and scaling secure payment infrastructure. His work sits at the powerful intersection of finance, technology, and policy.

Beyond his operational leadership, Babatunde is a passionate advocate for Open Payments. He is deeply committed to educating developers, non-technical professionals, founders, and policymakers on the transformative potential of open financial systems.

The post How Open Payments Can Transform Financial Access and Innovation in Africa appeared first on Tech | Business | Economy.

With over 200 FinTech startups eyeing the top position for dominance, it would seem like Nigeria’s finance industry has improved significantly.

However, behind the scenes of this thriving industry lies a hidden vulnerability nearly all FinTechs rely on a single entity, the Nigeria Inter-Bank Settlement System (NIBSS), to process transactions.

This dependence on a centralized payment infrastructure raises serious doubts about the reliability, competition, and long-term sustainability of digital payments in Nigeria.

NIBSS, a private company owned by the Central Bank of Nigeria (CBN) and all licensed commercial banks, serves as the backbone of the country’s financial transactions. Its main service, particularly the NIBSS Instant Payment (NIP) platform, is to enable transfers between different banks and bulk payments, making it important to both banks and FinTech companies.

As of today, over 90% of all digital transactions in Nigeria pass through its network. The total volume of transactions processed by NIBSS increased by 47.99% to 5.14 billion in 2022, compared to 3.47 billion in 2021. For FinTechs like Paystack, Flutterwave, Moniepoint, OPay, Paga, Interswitch and Kuda, integrating with NIBSS is not just a choice, it is a necessity. Without access to its platform, these companies would struggle to offer hassle-free financial services.

Although NIBSS has been very reliable lately, its dominance poses a huge risk. If this system fails, it could trigger disruptions and transmit shocks to financial markets, the domestic economy as well as at cross-border levels. Similar situations in the past have resulted in transaction backlogs, leaving many unable to access their funds for hours or days.

Now, if a cyberattack or a major technical failure were to cripple NIBSS, the entire digital payment system could halt, which will expose the dangers of relying on a single point of failure. In an economy where cash usage is declining fast and digital payments are becoming the norm, this level of dependency is alarming.

In February 2022, the Nigeria Inter-Bank Settlement System (NIBSS) experienced significant downtime, leading to widespread transaction failures and delays across the country.

This disruption affected numerous businesses and consumers, highlighting the risks associated with the centralized nature of Nigeria’s payment infrastructure.

For instance, many bank customers reported being unable to complete interbank transfers, causing inconvenience and financial strain.

Such incidents underscore the urgent need for Nigeria to diversify its payment systems and reduce over-reliance on a single entity like NIBSS to ensure a more resilient and efficient financial ecosystem

Beyond the operational risks, the FinTech industry’s reliance on NIBSS hinders innovation. Even though startups compete on user experience and additional features, they remain focused on a payment platform controlled by a single entity. This limits their ability to develop proprietary transaction-processing solutions.

In countries like Kenya and India, alternative payment networks like M-Pesa and the Unified Payments Interface (UPI) have allowed FinTechs to create independent, creative payment models.

In Nigeria, however, any disruption to NIBSS leaves FinTech with no viable alternative, bringing back the need for a more decentralized system.

Regulatory uncertainty further increases the risks. Because NIBSS operates under CBN’s regulatory framework, its policies directly impact FinTech.

The regulatory system is unpredictable, and if the CBN were to introduce stricter control over NIBSS operations, FinTech companies could find themselves constrained in ways they never anticipated.

To reduce over-reliance on NIBSS, Nigeria must embrace a decentralized approach to digital payments by working on alternative payment networks.

Private-sector-led initiatives, such as Verve by Interswitch, could be expanded to provide more transaction-processing options.

Open Banking platforms should also be leveraged to allow the process of direct bank-to-bank transfers without routing everything through NIBSS.

With the rise of Open Banking, FinTechs should be able to process direct payments between bank accounts without relying solely on NIBSS. Countries like the UK (via Open Banking) and Brazil (via Pix) have successfully launched such models.

While NIBSS is an important player in the Nigerian financial industry, Nigeria’s FinTechs must not place all its eggs in one basket. Over-reliance on a single entity is risky, which may expose the industry to risks of disruption, regulatory shocks, and limited innovation.

If Nigeria is to achieve a truly welcoming and creative financial platform, it must prioritize the development of alternative payment solutions that can function independently of NIBSS.

The progress of FinTech in Nigeria depends not just on big names but on creating a payment infrastructure that is decentralized, secure, and adaptable to change.

*Morgan Nwaiku is a digital technology professional. His career spans collaborations with Nigeria’s FinTech unicorns and hubs.

The post Are Nigerian Fintechs Over-Reliant on NIBSS? appeared first on Tech | Business | Economy.

• Commitment underpinned by strategic investments, public-private partnerships, and market innovation initiatives
• Focus on enabling MSMEs, scaling cross-border payments, and empowering fintech companies

Africa’s digital payments economy is set to grow from strength to strength according to a Mastercard-commissioned report by Genesis Analytics stating that the digital payments economy is expected to reach $1.5 trillion by 2030.

As a longstanding technology partner to Africa, Mastercard continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.

By fostering collaboration with key stakeholders, Mastercard aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.

Driving Africa’s digital growth

Mastercard’s investments will focus on three key areas to further accelerate digital adoption and financial inclusion:

1. Enabling Africa’s Micro, Small and Medium Businesses (MSMEs)
2. Empowering Africa’s fintech sector
3. Scaling remittances and cross-border payments

“Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead. Mastercard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future,” said Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at Mastercard.

 Africa’s digital transformation is underpinned by rapid advancements in internet penetration and financial inclusion, two of the fastest-growing enablers of digital payments across the continent.

According to the report, internet penetration in Africa is projected to grow at a compound annual rate of 20%, while financial inclusion is set to expand at 6% per year​.

These trends signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.

“For over five decades, Mastercard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development. With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and technologies to support the continent’s continued digital transformation. Our investments today will help build a more resilient economy for the future,” said Mark Elliott, division president, Africa, Mastercard.

1. Enabling Africa’s Micro, Small and Medium Businesses (MSMEs)

Recognizing that MSMEs account for over 50% of Africa’s GDP, Mastercard continues to provide digital solutions that empower small businesses and drive economic expansion.

This commitment is reinforced by the Mobilizing Access to the Digital Economy (MADE) Alliance: Africa, in partnership with the African Development Bank Group.

The initiative aims to extend digital access to critical services for 100 million individuals and businesses over the next decade. As part of its broader goal to bring users onto Community Pass, Mastercard has set a target to register 15 million users in Africa within five years.

Community Pass is a social enterprise initiative that digitizes and connects remote, and rural communities to governments, NGOs, and private sector services.

To further fuel the potential of Africa’s MSMEs, Mastercard will accelerate easy access to its proprietary solutions such as Tap on Phone and SME-in-a-Box.

The technology company will also continue to enable access to finance through its Track Micro Credit Program, which has already benefited thousands of micro merchants. Furthermore, African entrepreneurs will continue to gain knowledge on how to thrive as business owners through free learning resources such as The Entrepreneur’s Odyssey and Mastercard Trust Center.

2. Empowering Africa’s fintech sector

Africa’s fintech ecosystem is a key driver of digital transformation and economic progress. Nearly half of all fintech firms on the continent have been founded in the last six years, collectively raising $6 billion in equity financing since 2000.

Mastercard is partnering with banks, telcos, and other service providers across Africa and internationally to help accelerate fintech growth and expansion in new markets.

For example, Mastercard’s partnership with M-Pesa in Kenya and MTN Group Fintech has enabled millions of unbanked individuals to access digital financial services through mobile money platforms.

Similarly, Mastercard’s collaboration with digital wallet providers and e-commerce platforms has facilitated the integration of payment solutions into digital ecosystems, enabling seamless transactions for consumers and merchants alike.

For example, Mastercard’s global Fintech Express program provides fintech companies with an end-to-end experience for card issuance.

By combining its identity, biometric, AI and open banking capabilities, Mastercard helps protect consumers across the spectrum of internet and payments scams. 

3. Scaling remittances and cross-border payments

Seamless cross-border transactions are essential for Africa’s economic mobility.

According to the World Bank, Africa received approximately $100 billion in remittances in 2023, accounting for about 6% of the continent’s GDP.

Mastercard is playing a key role in enabling the infusion of funds into local economies. Through a single, secure point of access, Mastercard Cross–Border Services allow people and businesses to remit money securely, and with certainty.

Local partnerships such as the recent agreements with Africa’s Access Bank and Equity Bank, are enabling Mastercard to make cross-border payments more simple, convenient, and accessible.

Furthermore, they are enabling customers in multiple markets to make cross-border payments globally via bank accounts, mobile wallets, cards, and cash.

Mastercard remains committed to driving Africa’s digital growth through investment, innovation, and partnerships.

By enhancing financial inclusion, expanding digital transactions, and strengthening cross-border connectivity, the company is helping to build a more inclusive and resilient digital economy for the African future.

The post Africa’s Digital Payments Projected to Hit $1.5 Trillion by 2030 appeared first on Tech | Business | Economy.