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A recent report shows Africa alone accounted for 70% of global mobile money transactions, making it the undisputed global leader in mobile-led financial inclusion.
SPECIAL REPORT | BIRD AGENCY | Africa is shifting from cash handling in business to digital finance—an upgrade in the quest for financial inclusion, with mobile money bridging gaps for the unbanked, especially in the informal economy.
In western Kenya’s Kakamega town, Lilian Mulongo’s small fish and vegetable stall is a reflection of a wider continental transformation.
“After I lost all my business money to muggers, I made a tough decision—I had to stop dealing in cash,” she explained of the incident that happened 6 months ago.
“Now, all my customers settle their bills using their phones, mostly through Pochi la biashara,’” she added, referring to the Safaricom mobile wallet tailored for informal traders.
Mulongo’s experience mirrors the accelerating shift taking place across the continent.
The 2025 GSMA report captured this shift, noting that in 2024, mobile money contributed approximately US$190 billion to Africa’s GDP.
The report further showed Africa alone accounted for 70% of global mobile money transactions, making it the undisputed global leader in mobile-led financial inclusion.
Recent data underscores this shift, with Africa’s declining ATM footprint reflecting the continent’s move away from cash.
A 2025 analysis by MyBroadband, a South African ICT news website, determined that four of the country’s largest banks shut down 233 ATMs in 2024, with some, such as Standard Bank alone, having closed 40% of their ATMs since 2020.
“The biggest cutters were Standard Bank and Absa, which shut down 76 and 75 ATMs, respectively. Nedbank followed with 42 and FNB with 40,” the analysis reads in part.
Only Capitec had increased its ATM footprint as of 2024, from 8382 in March to 8749 in August 2024, a jump of 367.
According to Ali Kassim, a South African mobile money sector analyst at MTN, “the declining ATM footprint in South Africa reflects a broader consumer shift toward mobile-first financial behavior.”
“People are choosing convenience, security, and speed—and mobile platforms are meeting them there,” he shared in a call.
The declining ATM numbers is happening beyond South Africa. In Kenya, data from the Central Bank shows that between January and December 2023, banks shut down 77 ATMs, reducing the total to 2,282—the lowest number in five years, down from a peak of 2,573 in 2019.
The GSMA report indicated Kenya’s mobile money penetration rates had reached 95% of adults, the continent’s highest rate.
According to Kassim, “Kenya and South Africa are among the pioneers of mobile money on the continent. The decline in ATMs in these markets is an early sign of a shift we’re likely to see across other African economies soon.”
He adds that the transition isn’t just about convenience but reflects a deeper transformation in the delivery of financial services.
“Traditional banking infrastructure will ultimately give way to mobile platforms—not only because they’re more convenient, but because they offer a more scalable, low-cost way to reach the masses.”
“ATMs, bank walk-ins, and other legacy systems will increasingly serve as backup. Mobile money, especially in the gig and informal economies, holds more practical power than conventional banking ever did,” Kassim said.
The momentum is even moving fast for some markets, such as in Ghana, where the number of registered mobile money accounts has risen from 65.6 million in December 2023 to 73 million by the end of 2024, according to Mobile Money Africa.
In neighboring Nigeria, the fintech sector, led by companies like Moniepoint, processes over 800 million transactions monthly, equating to more than US$17 billion in volume, according to its website.
Similarly, in Francophone West Africa, mobile-first platforms like Wave are disrupting traditional finance with near-zero-fee transfers and mobile wallet services. Active in Senegal, Côte d’Ivoire, Mali, and Burkina Faso, it’s now a dominant player in the region.
In 2022, Wave processed over US$20.3 billion in transactions and served nearly 11 million users—roughly 90% of Senegal’s adult population, according to the company. Its 1% transfer fee undercuts traditional providers by up to 70%.
Wave’s remittance arm, Sendwave, enables direct diaspora transfers into local wallets.
As the mobile money ecosystem continues to shape up in several other markets, Kassim argues, “the population that will be most impacted will be the small business owners and the informal sector.”
“Digital wallets today do more than just receive payments—they offer sales tracking, savings options, and even microloans for restocking inventory,” Kassim explained.
“But for many in the informal economy, it’s the built-in accounting and security features that will have the most transformative impact.” Nearly 83% of employment in Africa is informal, according to the UN.
Already, service providers are pushing for more inclusive banking in these markets by leveraging mobile money innovations tailored to underserved populations.
This push is reshaping daily financial habits, especially in urban and peri-urban centers.
In Nairobi, for example, since 2021, Safaricom has partnered with matatu operators to enable cashless fare payments via M-Pesa. This allows passengers to pay directly from their phones, eliminating the need for cash and creating a safer, more efficient transport payment system.
The service has become integral to public transport in the city today.
Yet, this evolution brings its own set of challenges. Fraud and digital scams cost Africa an estimated US$4 billion in 2024, according to SABRIC (South African Banking Risk Information Centre).
However, governments and regional blocs are taking steps to institutionalize mobile finance, strengthening systems that will not only guarantee better security but also facilitate broader coverage internationally.
The Pan-African Payment and Settlement System, a centralized financial market infrastructure that enables the efficient flow of money securely across African borders, has continued to shape up since its launch in 2019.
In February 2025, KCB Group and Bank of Kigali launched the system, formally marking the integration of the transformative system into their operations.
According to Mike Ogbalu III, CEO of PAPSS, “This transformation is set to unlock new opportunities for trade and investment, allowing African SMEs to access broader markets and contribute to local economies.”
The Pan-African Payment and Settlement System (PAPSS) is hailed as a key enabler of AfCFTA. By simplifying cross-border trade, it allows transactions in local currencies and reduces reliance on hard currencies.
The McKinsey Global Institute projects that digital finance, encompassing mobile money, could increase the GDP of developing countries by US$3.7 trillion by 2025.
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SOURCE: Bonface Orucho, bird story agency
