Blockchain & The Future of Digital Payments
How blockchain and digital payments boost inclusion & security in Africa.
AFF Team
Africa Fintech Foundry
Technology is reshaping how we transact, with digital payments leading the way. Blockchain technology in Africa, for example, plays a central role in this transformation. It is now critical for financial service providers to understand how to use these modern payment technologies to enhance service delivery. Africa is taking center stage in digital payment adoption, revolutionizing the financial services industry. Despite the progress, adapting to modern payment systems presents challenges, which this article explores.
Digital Payments: A Global Perspective
Global digital payments are projected to surge from $329 billion in 2025 to $1 trillion by 2035 [1] , highlighting their growing momentum. This growth signals ongoing investment and rising demand for faster, lower-cost payment solutions. Digital wallets and neo-banks are revolutionizing how payments are made, as the average fee on such platforms is falling to 3.5% compared to 8–12% through traditional financial institutions [2] . As cross-border payments grow, payment service providers must adapt or risk being left behind.
Digital Payments: Zoning into Africa
Discussing digital payments in Africa is incomplete without spotlighting the ongoing transformation. Blockchain for financial inclusion is changing the game. Blockchain is a distributed ledger system that securely records transactions across a network [3] and is best known for its role in maintaining a secure and decentralized record of transactions. It is no surprise that more African countries are beginning to adopt blockchain payment systems.
Blockchain also reduces transaction costs in Africa. Traditional banking systems involve multiple intermediaries, which typically leads to high fees. Blockchain, however, eliminates intermediaries by enabling peer-to-peer payments and reducing fees as low as 2–3%. This makes remittances in Africa and business payments more affordable.
Blockchain also enables faster cross-border payments. Payments can be settled within minutes, improving efficiency for individuals and businesses. Blockchain transactions are recorded on an immutable ledger, which ensures transparency and prevents fraud. Each transaction is encrypted, reducing the risk of tampering and making international payments more secure.
When we consider statistics presented by Positive Technologies’ Cybersecurity Threatscape for African Countries 2022–2023 [4] , which reported that 97% of leaders of large financial institutions in Africa believe that cybercrime poses a big threat, it emphasizes why blockchain cybersecurity solutions are essential. In 2022 alone, Nigeria lost over $500 million to cybercrime, according to Nigeria’s Economic and Financial Crimes Commission [5] . Kenya too lost $83 million to cybercrime in 2023.
Blockchain also promotes greater financial inclusion in Africa. Utilizing digital payment solutions has significantly increased banking penetration in previously underserved communities, allowing individuals and small businesses in rural and remote areas to access formal financial services [6] . Blockchain wallets such as Ethereum, Bitcoin, and stablecoin now provide unbanked populations with access to banking. As blockchain is continually harnessed, it is expected that there will be greater financial inclusivity across the continent.
Leveraging Blockchain: More Threats Than Opportunities?
Utilizing blockchain also comes with its unique challenges. Typically, cross-border payments in Africa have been a challenge due to high expenses and inefficiencies caused by reliance on other banking networks, currency volatility, and regulatory complexities [7] .
Data privacy protection in blockchain is another challenge; network security and protection against potential cyberattacks are fundamental to fully maximize blockchain payments. Technical professionals also need to develop their expertise amid the rise of blockchain, given how labor-intensive it can be.
Conclusion
Digital payments in Africa are changing how people and businesses transact. The continent is witnessing firsthand the benefit of leveraging blockchain for payments to make transactions faster, cheaper, and more secure. However, to sustain the momentum, secure blockchain systems need to be created to encourage customers to embrace digital payment platforms.
From educating communities on blockchain to ensuring greater cybersecurity measures are in place to protect customers’ data, there is ground to be covered. With determination and focus, the future of digital payments in Africa can be secured.
Reference:
[1] https://techcabal.com/2025/05/27/digital-payments-powers-1-trillion-cross-border-market/
[2] https://techcabal.com/2025/05/27/digital-payments-powers-1-trillion-cross-border-market/
[3] https://www.investopedia.com/terms/b/blockchain.asp
[4] https://global.ptsecurity.com/en/research/analytics/africa-cybersecurity-threatscape-2022-2023/
[6] https://practiceguides.chambers.com/practice-guides/fintech-2025/nigeria/trends-and-developments