Connect with us


Challenges and Opportunities in African Payment Infrastructure




Challenges and Opportunities in African Payment Infrastructure

Africa is evolving massively in all areas, and the digital payment industry isn’t left out. Many digital payment systems have sprouted in the past and achieved tremendous success due to the enabling environment and the desire of Africans to join the formal financial system: “Challenges and Opportunities in African Payment Infrastructure.”

However, despite the success achieved, the African payment infrastructure still faces some challenges and has massive opportunities for growth. This article discusses these challenges and opportunities and how they affect individuals and businesses in the continent.

Challenges in African Payment Infrastructure

  • Low Financial Inclusion

One of the major challenges of the African payment infrastructure is the low degree of financial inclusion. Many Africans, especially those in rural communities, lack access to modern financial services.

According to The Fintech Times, 57% of the population of Africa, around 95 million people, do not have a traditional bank account. This shows how many people are excluded from the formal financial system, limiting the strength of the African payment infrastructure.

With banks situated only in the major cities of most African countries, the difficulty in penetrating rural areas with financial solutions increases, causing people and businesses in these areas to still rely heavily on cash transactions.

  • Cash Dominance

According to a 2017 United Nations report, about 90% of retail transactions in Sub-Saharan Africa are still cash-based. This means that cash still rules in Africa, which is risky due to the associated theft and fraud.

Furthermore, Africa’s reliance on cash is another reason behind the low degree of financial inclusion in the area. This cash dominance isn’t slowing down anytime soon because of the reluctance of the informal merchants, who form the majority, to deal with non-cash payment methods.

Handling and transporting cash can be expensive and logistically challenging, making digital payments more efficient and secure.

  • Limited Infrastructure

Infrastructural limitations are part of the key challenges in the African payment system. Individuals and businesses lack affordable access to physical infrastructure, such as ATMs and POS terminals, and digital infrastructure, such as the internet, leading to the low adoption rate of digital payment systems in most regions.

According to Statista, only 43.2% of Africans have access to the internet, leaving a huge percentage of people without access to the digital payment system.

The lack of infrastructure or its limitations greatly limits the successful expansion of the digital payment infrastructure in Africa, as people and businesses in rural and underbanked communities are completely excluded.

  • Regulatory Hurdles

Many African countries have strict regulatory policies affecting the payment infrastructure. Payment service providers often face challenges navigating these regulations when facilitating cross-border transactions, discouraging them from expanding their services to other African countries and denying many people access to the modern financial services they offer.

  • Security Concerns

Security is another key challenge in the African payment system, as some companies lack the resources to provide high-level customer data protection. Customers fear falling victim to online scams or having their personal data in the wrong hands.

Worse still, less than 50% of companies in Africa are well-equipped to handle a large-scale cyberattack. In fact, a 2021 African Cyberthreat Assessment Report by Interpol shows that more than 90% of African businesses were operating without necessary cyber security protocols.

This shows that security is one of the biggest reasons the African payment infrastructure has not expanded to catch up with what’s obtainable in Europe and America.

Opportunities in African Payment Infrastructure

  • Mobile Money Revolution

The success of mobile money services in some African countries like Kenya has led to its massive adoption in other African countries like Ghana and Nigeria. Mobile money is rapidly growing in the continent because of the difficulties people experience with traditional banking services and the increasing availability and affordability of technology.

With a total transaction value of over $800 billion in mobile money transactions, Africa tops the global mobile money usage chart.

The mobile money revolution presents a huge opportunity for developing the African payment infrastructure. Many previously unbanked individuals now have access to modern financial services, enabling them to access personal and business growth opportunities.

  • Growing Middle Class

According to the African Development Bank, the number of middle-class Africans has tripled since the late eighties, exceeding 313 million people, and is expected to reach 1.1 billion by 2060.

The growing number of middle-class Africans presents a great opportunity for the growth of the African payment infrastructure. This is because an increase in the middle class means an increase in the number of people with more disposable income who are more likely to adopt electronic payment methods.

  • Technological Development

As technologies evolve and new ones roll out, the payment system gets better and more widely adopted. Modern technologies like blockchain, AI, biometric authentication, etc., have led to the development of more efficient, accessible, and secure payment systems in Africa.

The African payment infrastructure has seen the development of digital payment solutions like mobile wallets, digital payment apps, and even contactless payment systems. This makes it easier for unbanked individuals to access financial services and reduce their dependence on cash.

  • Financial Inclusion Initiatives

Many African governments are creating conducive environments for digital payment systems to thrive. By creating financial inclusion initiatives that drive the fast adoption of digital payment systems, they facilitate the expansion and reach of these payment services to the unbanked areas.

Financial inclusion initiatives strengthen the African payment infrastructure, ensuring people initially excluded from the financial system are integrated. With more people accessing financial services like savings, investments, and more, the payment system expands and the economy benefits.

  • E-Commerce Growth

The growth of e-commerce in Africa creates opportunities for convenient and secure online transactions. According to Statista, e-commerce in Africa is projected to reach a market volume of $59.18 billion by 2027.

This massive growth in the volume of e-commerce transactions also results in a great volume of e-payments, further strengthening the African payment system.


The African payment infrastructure is faced with a myriad of challenges and opportunities. While key challenges such as low financial inclusion, cash dominance, regulatory complexity, and more persist, there are also many opportunities that, when harnessed, will reshape the financial ecosystem across the continent.

At Kora, our mission is to connect Africa to the world and connect the world to Africa via payments. For startups and businesses accepting money in and from Africa, we provide all the support you need to start, scale, and thrive on the continent. Visit to see all the ways you can grow with Kora [korahQ].

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


How the Logistics Sector Can Improve On Payment Collection In Nigeria



How the Logistics Sector Can Improve On Payment Collection In Nigeria

How the Logistics Sector Can Improve On Payment Collection In Nigeria


The logistics sector in Nigeria continues to gather momentum, especially in the urban centers that are densely populated with people of varying demands. This business is a critical part of the supply chain as it collects, transports, and delivers products to customers. Hence making it a lucrative venture in Nigeria.


However, the advent of technology has amplified the logistics sector as it now tends to leverage digital tools to attract customers seeking to employ the service for product delivery to different parts of the country. This has increased online presence through websites and social media platforms like Instagram, Facebook, and X (Twitter).

How the Logistics Sector Can Improve On Payment Collection In Nigeria

Notably, the logistics sector already has a synergy with other sectors like the e-commerce industry, which is primarily populated by small and medium-scale enterprises (SMEs).


Therefore, its relevance becomes germane to fostering the customer experience of any business. This is because a timely delivery of products is the hallmark of any logistic business.


However, payment structure plays a significant role in the effectiveness and efficiency of the business as this propels it to pick up products and get them delivered to people. So, product delivery will always be delayed when a firm payment agreement between an SME and the logistic business is not met. While this can affect the reputation of the SME, it can also reduce the patronage of such logistics.


In light of bolstering the operation of the logistics sector in Nigeria, it is imperative to employ payment methods that are easy and simple to use such that it does not lead to delays that hamper related businesses. Therefore, Fincra has put in place sustainable payment innovation to boost the growth of the logistics business in the country.


Notable as one of the leading fintech companies in Nigeria, Fincra is a payment gateway committed to improving the payment strategy of different sectors in Nigeria, including the logistics business.


Ways Logistics Sector Can Collect Payments On Fincra


1. Virtual Account


Logistics businesses can create a naira (NGN) virtual account on Fincra, which enables them to collect payments from clients across Nigeria. This virtual account can be temporary in the instance of a one-off transaction or a permanent one, which can be used to collect payments like the local bank account.


This Fincra virtual account allows easy reconciliation and effective payment management for businesses and logistics.


2. Payment Link


There is a Fincra payment link that logistics businesses can quickly generate to collect payments from clients. This link can be customized and shared across various messaging tools – social media platforms and text messages. It includes all the necessary information, including the account details of the logistics business for their clients to make payment via bank transfer or cards.


3. E-wallet


This is using the Fincra wallet to collect payment by the logistic business. However, it is only conditioned that the other client has a Fincra account to facilitate this transaction. This is another effective way of collecting payments because it is simple and instant.


Therefore, logistics may need to create a Fincra account and encourage their clients to create the account to enable a seamless completion of payment without delay. This will be a win-win situation for both businesses.


4. Card Payment


This involves the use of credit or debit cards to make payments. As such, there is a Fincra POS terminal that logistics businesses can employ to collect card payments from their clients. This is a mode of agency banking designed by Fincra to increase the coverage for the payment system in Nigeria.


It facilitates an in-person transaction that ensures quick completion of payments between the logistics business and its clients.




Nigeria’s logistics sector is a booming economy, with many entities foraying onto the landscape. But as this sector continues to become competitive to stay afloat, it is important to adopt better payment strategies that would push the business to the fore of attracting more clients.


Fincra provides different options to collect payments for logistics businesses. You can take advantage of that when you create a Fincra account now.


Continue Reading


How E-commerce Businesses Can Build Trust With Fincra Payment Collection Methods In Nigeria



How E-commerce Businesses Can Build Trust With Fincra Payment Collection Methods In Nigeria

How E-commerce Businesses Can Build Trust With Fincra Payment Collection Methods In Nigeria


E-commerce is a burgeoning sector in Nigeria, with small and medium-scale businesses continuously entering the market to attract teeming online users who are potential customers. This can be owed to the widespread adoption of technology, which businesses are leveraging to grow sales.


Today, there is a proliferation of e-commerce platforms or stores across Nigeria designed to meet the purchasing needs of the larger Nigerian population. This has given rise to a competitive market with businesses adopting strategies that would give them a better position of generating and retaining leads (customers) in the dynamic business landscape.

How E-commerce Businesses Can Build Trust With Fincra Payment Collection Methods In Nigeria

There are many strategies e-commerce businesses employ in Nigeria and worldwide – from a user-friendly online storefront that is easy to navigate to a payment system at checkout. These are some significant factors customers consider to inform their buying decisions on an e-commerce platform.


We can not overemphasize the role of payment collection in e-commerce, as customers are always keen on ensuring that a system makes their payment at checkout seamless. This reinforces customers’ trust and confidence in completing their purchases on the e-commerce platform.


But, while bank transfers, card payments, and e-wallets are currently the popular methods of collecting payments in Nigeria, e-commerce businesses can harness different payment options on Fincra.


Payment Collection Methods On Fincra For E-commerce Businesses


Fincra is a leading fintech company in Nigeria that has become a trusted and reliable payment gateway for various business niches. As such, e-commerce businesses can use the payment options on Fincra or, better still, integrate with the payment API on the platform to ease the payment process on their respective platforms.


However, you can directly collect payments from customers across Nigeria on your Fincra account. You can achieve this with payment options that include:


  • Virtual account: this is a virtual naira account on Fincra that enables you to collect payment through bank transfers from your customers.


  • Payment link: there is a Fincra Payment Link, which is customizable – enabling you to share account details with product descriptions with customers on social or messaging platforms.


  • Direct API: this is a fully optimized payment system that provides a class array of different options on your e-commerce platform.


  • Checkout: a Fincra checkout can be tailored to your e-commerce platform, supporting your customers’ devices to provide an improved experience for your customers.


By and large, all these payment collection methods on Fincra are important to the payment strategy of any e-commerce business in Nigeria. They provide your company with a positive outlook to gain trust and confidence.


Benefits Of Payment Collection On Fincra By E-commerce Businesses


1. Low Fee


The fee is relatively low when you collect payments on the Fincra. It provides one of the industry’s best pricing such that you save more for your business while using the platform. This is with the understanding that the sole aim of business is to make profits. Therefore, Fincra is committed to maximizing your gains with its low fee structure on the platform.


2. Advanced Security


Fincra employs a state-of-the-art security system to keep your funds safe when collecting payments on the platform. It complies with industry standards to keep your financial information and funds from unauthorized access. Therefore, Fincra protects you from identity theft that could lead to a possible loss of funds.


3. Multiple Payment Methods


As a reputable payment gateway in Nigeria, e-commerce businesses can collect payment via different options that best suit them on Fincra. These are naira (NGN) virtual accounts, payment links, checkout, and direct API. Therefore, these make your business more trusted as you gain more customers.




People continue to use e-commerce platforms to buy their preferred products in Nigeria, even as others also offer a range of services. But the integral part of e-commerce is the payment system that is the best fit for customers. That is why these businesses need to use the various options on Fincra to collect payments in Nigeria.


You can create a Fincra account now to use different payment methods for your e-commerce business.


Continue Reading


AAS TOKEN (AAST): The Power of Early Cryptocurrency Investment



AAS TOKEN AAST The Power of Early Cryptocurrency Investment

AAS TOKEN (AAST): The Power of Early Cryptocurrency Investment

In the dynamic landscape of finance, one phenomenon has consistently captured the attention of risk-takers and forward thinkers alike — the world of cryptocurrency. Stories of astronomical gains and heartbreaking losses fill the digital realm, but amidst this volatility, a strategy stands out: investing in cryptocurrency at launch. This article delves into the advantages of being an early adopter, exploring the potential for substantial profits and the unique benefits that come with it.

AAS TOKEN AAST The Power of Early Cryptocurrency Investment

The First Mover Advantage: The undeniable perk of diving into a new cryptocurrency at launch is the first-mover advantage. Early investors gain exclusive access to potential gains before the wider market catches on. Securing tokens at lower prices paves the way for significant profits as the project gains traction and demand. This early entry positions investors at the forefront of groundbreaking digital currencies, offering a unique edge in the volatile crypto market.

Discovering Hidden Gems: Investing in cryptocurrency at launch opens the door to discovering hidden gems amidst the sea of digital assets. While established players like Bitcoin and Ethereum dominate headlines, emerging projects can provide unique features and innovative solutions to real-life problems. Being an early investor allows individuals to identify and capitalize on the next big thing before it becomes common knowledge, potentially reaping substantial rewards.

Timing the Market Waves: Timing is crucial in the cryptocurrency market, and investing at launch provides a unique opportunity to ride the initial market waves. As a project gains attention and momentum, early investors can strategically capitalize on price fluctuations, buying and selling to maximize returns. While navigating early market dynamics requires an understanding of volatility, the potential rewards outweigh the risks for savvy investors.

The Token Launch: A Privileged Opportunity: Introducing a token launch that presents a privileged opportunity for early investors. Pre-sale information is shared, including the dates (19th and 20th of November 2023) and the corresponding prices for each phase (15 cents, 20 cents, and 25 cents). The token’s total supply is highlighted as 10 billion, with 50% in circulation and the remaining 25% allocated for liquidity provisions, business development, and special projects.

Economics of the Token: A breakdown of the AAS token’s economic structure is provided, detailing the allocation of the 10 billion tokens. Categories include liquidity provisions, business development, special projects, an arbitrage system team, and marketing and operational costs. The reserve purposes are emphasized as a security measure, instilling confidence in potential investors.

Building a Long-Lasting Investment through AAST: The article emphasizes the advantages of being part of an early investment in the mentioned token through the AAS platform. The early investors are encouraged to sign up and leverage the potential benefits of being among the first to access the token when it hits the open market. The minimum registration amount is disclosed, and the article stresses the opportunity to earn a weekly return on investment.

Conclusion: In conclusion, the article is meant urges readers to seize the opportunity presented by the upcoming AAS token launch. Drawing parallels to the early days of Bitcoin and other successful cryptocurrencies, the author highlights the potential for substantial profits and the chance to be part of a revolutionary investment. The call to action encourages readers to subscribe, like, comment, and sign up for the AAS platform to embark on a journey of financial growth and success.

Continue Reading