Africa’s digital payments landscape holds immense potential, with $1.3 trillion in cash transactions across the continent yet to be digitized.

This is according to Visa, which provided insights on the digital payments landscape in Sub-Saharan Africa during the Visa Security CEMEA Summit, held in Cape Town on Tuesday.

Aida Diarra, senior vice president and head of Sub-Saharan Africa at Visa, said that cash-based economic activities present a significant opportunity for merchants and consumers to digitise their operations, creating a multiplier effect to drive financial inclusion and economic development.

Diarra attributes Africa’s continued use of cash to various factors, primarily the restricted availability of digital payments, which impacts over 200 million people across the continent.

The primary factor holding back adoption is access, she said. “Technology is now offering us the possibility to better drive the access. We can now embed a card credential into a wallet to make a payment from your phone.”

She added that the recent increase in reach of such solutions has led to an acceleration of digitised payments. “There is a 20% growth, year-on-year, of digital payments and it’s driven by that (improved reach).

In addition to improving access, there’s a need to improve acceptance of digital payments too.

“In order to pay, you need to have merchants that accept payments, and here again, technology is a phenomenal driver; look at the merchant’s ability to use their phone as an acceptance device.”

According to Visa, only eight million merchants on the continent accept digital payments, with 44 million still not heeding the call to transition to digital payments.

Diarra said Africa accounts for 70% of mobile money globally and players such as Fintechs, mobile network operators, micro-lenders, and e-commerce players are pushing the continent’s mobile first agenda.

When it comes to alternative digital payments solutions like cryptocurrency, she says the big African markets will have the first mover advantage because of the landscape they operate on, with markets like South Africa, Kenya, and Nigeria already leading the pack in cryptocurrency usage, not only in Africa, but globally. She optimistically notes that because of the opportunity technology presents, other markets have room to leapfrog.

She explains: “A few years back, looking at landlines and the numbers of households that did not have access, and then with mobile telephony coming, we went past that and created further access.

“The big economies will probably lead the (cryptocurrency) charge. With this, cost comes down, technology becomes nimbler, and adoption would be accelerating in other markets.”

Because of the DNA of the ecosystem in some markets and challenges to access hard currency, crypto is leveraged in these markets to issue and make payments, Diarra said.

“This is something we need to continue to monitor, and that is likely to continue to grow. The good news is that regulators are beginning to appreciate this is a trend that’s here to stay, and that there needs to be proper rules and frameworks to make sure that they fully have visibility and continue to enable the use of such capabilities,” she concludes.

Nigeria Data Protection Commission (NDPC) has secured the support of the National Judicial Institute (NJI), in line with its objective of safeguarding the data privacy rights of Nigerians.

Dr. Vincent Olatunji, national commissioner and CEO, NDPC Hon. Justice Salisu Garba Abdullahi (Rtd) of NJI

This was contained in a press statement signed by Mr Itunu Dosekun, head of Media, NDPC, and made available to journalists in Abuja, the nation’s capital.

NJI is a government institution responsible for the training of judicial officers in Nigeria, from magistrate courts to the Supreme Court of Nigeria.

During a courtesy visit by the Commission to NJI, Dr. Vincent Olatunji, national commissioner and CEO, NDPC, lauded the management of NJI under the leadership of Hon. Justice Salisu Garba Abdullahi (Rtd) for the milestones the Institute has achieved in human capital development, particularly for judicial officers and fellows of the Institute.

While commenting on the importance of the Nigeria Data Protection Act in the face of disruptive technologies, Dr Olatunji reiterated the need to collaborate with NJI in keeping judicial officers abreast of privacy jurisprudence.

He noted that decisions on the enjoyment of data privacy rights concerning one citizen have fundamental implications for all citizens.

“It is the digital age, and the protection of the privacy of all citizens worldwide is paramount.

“It is now the right of all citizens to have their privacy protected. This is why countries across the globe are putting adequate measures in place to ensure enforceable data protection rights, as well as establishing data protection authorities to enforce data protection laws,” Dr Olatunji stated.

In his response, Justice Abdullahi commended the NDPC, under Dr Olatunji’s leadership, for its significant achievements since its establishment.

He pledged to collaborate with the NDPC to raise awareness of data protection and privacy within the judiciary and accepted the NDPC’s proposal, anchored on capacity building for judges, NJI fellows, and employees.

“The issue of data protection is very important. It is new, and judges need to be trained. The first step we should take is to review the Act (NDP Act) that established the Commission. Additionally, there is a need for us to train our fellows on data protection.”

NJI and NDPC have put in place a technical working group that will draw up a work plan and coordinate the initiatives for capacity building. The working group is expected to report back within days to commence implementation.

Flutterwave, Africa’s payments technology company, said it has formed a strategic partnership with the National Information Technology Development Agency (NITDA), to drive digital transformation and ultimately economic growth across Nigeria.

Olugbenga Agboola, founder and CEO of Flutterwave and Kashifu Abdullahi, director-general & CEO of NITDA

The collaboration aims to address the slow adoption of digital solutions among small and medium-sized enterprises (SMEs), a critical challenge that, when solved, can significantly boost the nation’s digital economy.

By promoting digital literacy, encouraging fintech innovation, and supporting key national initiatives such as the National Digital Economy Policy and Strategy (NDEPS), the partnership has a goal to accelerate Nigeria’s transition into a thriving digital ecosystem.

Despite the rapid evolution of digital payment systems, many SMEs in Nigeria still rely on traditional business models that limit their growth potential.

The inability to adopt digital payments, leverage e-commerce, and access secure financial solutions creates barriers to scaling and participating in the global economy.

Recognising this challenge, Flutterwave and NITDA were collaborating to bridge the digital divide and equip businesses with the right tools and expertise to embrace digital transformation.

Speaking on the partnership, Olugbenga Agboola, founder and CEO of Flutterwave, said, “many small businesses in Nigeria struggle to fully embrace digital solutions, and we believe that by providing seamless and secure payment technologies, we can empower them to scale with confidence.

“This partnership with NITDA reinforces our dedication to encouraging a truly inclusive digital economy, and we are proud to contribute to the outstanding work NITDA is doing to transform Nigeria’s digital landscape.”

Kashifu Abdullahi, director-general & CEO of NITDA, added, “Flutterwave’s reputation for fintech innovation aligns perfectly with our vision for a thriving digital economy. We recognize that slow digital adoption among SMEs has hindered economic growth, and through this collaboration, we aim to provide businesses with the necessary resources and infrastructure to transition into the digital age.”

The partnership represents a significant step toward Nigeria’s digital transformation, with Flutterwave and NITDA working hand in hand to create an environment where businesses can thrive through innovative financial solutions.

Flutterwave is a payments technology company that enables businesses across the world to expand their operations in Africa and other emerging markets through a platform that enables local and cross-border transactions via one Application Programming Interface (API).

Flutterwave has processed over 890 million transactions in excess of $34 billion, serves global and African customers like Uber, Air Peace, Bamboo, PiggyVest, and across various industries.