India-based Airtel partners with Mastercard to enable mobile customers to transfer funds across Africa. The service will allow Airtel’s mobile users across 14 African countries to initiate digital transactions internationally, as it is designed to solidify the cooperation between Airtel Africa and Mastercard, therefore boosting the digital economy on the continent.

The beneficiaries of this service will be able to access and connect to wallets in over 145 markets. Airtel’s network has been launched and the service will be introduced to Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles, Tanzania, Uganda, and Zambia. Airtel’s officials from East Africa have declared that the partnership with Mastercard will allow the mobile network company to provide international money transfer services.

Moreover, Mastercard’s officials have guaranteed that the integration of the service will be straightforward and safe, as their company is committed to Africa’s growth in the digital economy sector. Back in 2021, Airtel Africa secured an investment of USD 200 million for its mobile money business, Airtel Mobile Commerce BV. In October 2022, the company announced the acquisition of an additional spectrum in Tanzania, in order to support network progress for mobile data and wireless home broadband capabilities, and to provide capacity for data growth.

Digital payments in Africa As per Mastercard’s Borderless payments report, a significant proportion of their customers initiate international payments through mobile applications. Therefore, the high rate of digital payment methods for fund transfers in Africa is supported by the number of people who send and receive payments on international mobile applications. Digital payments are not exclusively related to financial inclusion, but also to economic growth, efficiency, and transparency.

Africa has seen growth in e-payments since 2000, and the COVID-19 pandemic has increased the implementation. According to the Central Bank of Nigeria, mobile transactions in Nigeria doubled in number in 2020, reaching approximately 800 million. Online commerce grew by 40% during lockdowns in South Africa.

Moreover, the value of mobile transactions processed by African banks has escalated from USD 5 billion in 2012, to over USD 60 billion in 2020. The number of active mobile money users across the continent has exceeded 330 million. Countries, including Egypt, Ghana, Kenya, Nigeria, and South Africa, have implemented infrastructures and policy frameworks that provide an elevated electronic payment system, therefore, half of the income from e-payments is expected to come from these areas in the future.

On the other hand, the digital lending space in Africa faces the challenge of fragmentation in the loan market, as, despite the increased lending to the small and microfinance industries in Sub-Saharan Africa, they were confronted with a USD 331 billion funding shortfall. Companies operating in this industry may also be impaired by the lack of awareness and trust, limited infrastructure, high transaction costs, and restrictive regulations. Furthermore, digitalisation has not yet reached all the communities in Africa, as approximately 60% of individuals do not have access to internet connection, and 40% do not have any form of ID.

In order to reach these communities, governments and companies will have to implement a digital infrastructure and incorporate digital tools that succeed in this context. .