Driving Financial Inclusion - The Future of Cross-Border Payments in Africa

Africa is on the brink of profound economic transformation. According to the United Nations Economic Commission for Africa, by 2050, more than 1 in 4 people worldwide will be African, up from 1 in 11 in 1960. With the youngest population on the planet, the continent is poised for significant growth. Cross-border payments will be a key part of this future — expected to become a trillion-dollar industry within the next decade.

Africa’s time is now, but achieving this potential will depend on regulatory frameworks that can keep pace with growth and manage the complexity of 54 diverse countries, each with its own rules and systems. As the continent becomes a centre for innovation and opportunity, better cross-border payment solutions will be essential for financial inclusion and economic integration. With mobile wallets, blockchain and stablecoins driving change, and credit bureaus using alternative data to expand access to credit, Africa’s financial future is already taking shape.

For millions of African families, cross-border payments are a lifeline. They pay for education, medical care, housing and they serve as the capital needed to start small businesses. According to the World Bank, remittances to Africa totalled over $92.2 billion in 2024, roughly twice the level of overseas development assistance.

Within Africa, 19 of the 54 countries rely on remittances for at least 4% of their GDP. Yet Africa remains the most expensive region in the world to send money to. In Q1 2024, the cost of sending $200 to sub‑Saharan Africa averaged 8.4% compared to a global average of 6.4%.

A large share of transfers still happens through informal, cash‑based channels — which are often costly and risky. Lowering fees and improving access to safer, faster cross-border payment solutions would put billions back into the hands of recipients, boosting household incomes and supporting local economic growth.

Improving the efficiency and affordability of digital payment solutions, particularly through mobile wallets and digital banks, is therefore essential not only for individuals but for broader financial inclusion and economic development across the continent.

• Fragmented regulations: Unlike countries with unified systems like Brazil’s PIX or India’s UPI, Africa is made up of 54 countries, each with its own currency, central bank and regulatory framework. This highly fragmented financial landscape adds complexity and cost to cross-border transactions. Regulators will need to keep pace with rapid market growth to manage this diversity effectively.
• Legacy systems and intermediaries: Traditional banking networks rely on multiple intermediaries to verify and settle payments. Each step adds fees and delays, making transactions expensive and slow.
• Long processing times: The numerous steps and checks required mean payments often take longer than necessary to reach recipients.
• High costs: The World Bank’s Remittance Prices Worldwide Quarterly shows sending $200 to sub-Saharan Africa cost an average of 8.4% in 2024, the highest of any region. The global average was 6.4%. The UN Sustainable Development Goals aim to cut this to 3% or less, a target innovative digital payment solution could help achieve, saving billions.

Africa has leapfrogged traditional internet banking, widely adopting mobile money and digital wallets that offer faster, more affordable alternatives. Exemplified by Kenya's M-Pesa, these platforms facilitate rapid money transfers through mobile networks, enjoying strong trust and adoption where conventional banking is scarce. This significantly reduces friction in cross-border payments, fostering a more inclusive financial ecosystem.

African FinTechs are building on the strong trust in mobile money by creating cross-border payment solutions that meet regulatory requirements and use strategic partnerships to scale. Initiatives like the Pan-African Payment and Settlement System (PAPSS) and BankservAfrica’s Rapid Payments Programme (PayShap) in South Africa are leading the way in developing shared cross-border payment infrastructure that makes transactions faster, easier and more affordable across the continent.

This digital transformation is supported by increasing consumer optimism; TransUnion's Consumer Pulse data shows 43% of Kenyan and 38% of South African consumers feel positive about their household finances, signalling a higher demand for accessible credit and reliable digital payment solutions.

Blockchain technology has the potential to make cross-border payments faster, cheaper and more secure. By using decentralised ledgers, blockchain removes the need for multiple intermediaries, cutting fees and enabling near-instant settlements. Its transparency also reduces the risk of fraud.

Stablecoins — digital currencies pegged to traditional currencies, such as the US dollar or South African rand — address the volatility of cryptocurrencies. They create more predictable and reliable transactions. Countries including South Africa, Kenya and Rwanda are exploring stablecoins to enable faster, more reliable cross-border payments, while Ghana has launched the e-Cedi, a central bank digital currency designed to support digital transactions.

If combined with mobile wallets and supported by clear regulation, these digital payment technologies could greatly reduce remittance costs, speed up transfers and expand access to secure financial services for millions of Africans.

Bridging innovation and regulation is essential for Africa’s financial growth. Beyond payment rail initiatives, regional efforts, such as the African Continental Free Trade Area (AfCFTA), are increasing the need for efficient, low-cost cross-border payment systems to support trade and investment. Central banks in South Africa, Nigeria and Ghana are piloting digital currencies that could integrate with cross-border systems and enable swifter, safer transactions.

Regulators are also modernising know your customer (KYC) and anti-money laundering frameworks to support digital onboarding while maintaining strong compliance controls. In markets like Kenya and South Africa, regulatory sandboxes are helping FinTechs test new solutions in partnership with authorities. These changes are vital for bringing the continent’s 500 million unbanked people, including 16 million adults in South Africa, into the formal economy.

Many Africans remain “invisible” to traditional credit systems. According to TransUnion Consumer Pulse data, approximately 16 million adults in South Africa lack active credit bureau profiles, making it difficult for lenders to assess creditworthiness and offer affordable credit. Similarly, in Kenya, while income and credit access optimism are growing, only 36% of consumers report sufficient credit access and 41% are deterred from applying due to high credit costs.

To address these challenges, TransUnion uses alternative data sources, such as mobile phone data to create credit scores for “thin-file” or “invisible” individuals. This approach allows lenders to extend smaller, more affordable loans, enabling people to build credit histories over time and qualify for larger credit facilities.

This is part of what can be described as the “financial inclusion flywheel”: By equipping lenders with robust, data-driven insights, TransUnion helps them extend credit more confidently and responsibly. As more consumers access credit, especially for income-generating activities like small businesses, this fuels economic growth and GDP expansion. In turn, improved incomes and economic activity support better infrastructure and services, creating a virtuous cycle of financial inclusion and national development.

Consumer Pulse insights reinforce this dynamic. Many consumers in South Africa and Kenya prioritise debt repayment and financial resilience. South Africans are accelerating debt repayments and building emergency savings, while Kenyans are cutting discretionary spending to manage finances more effectively. These responsible financial behaviours align with TransUnion’s purpose of Information for Good® — using data to help people around the world access opportunities that lead to a higher quality of life and drive broader economic progress.

Looking ahead, TransUnion is considering ways to incorporate cross-border transaction data into credit scoring models. Regular remittances sent or received could serve as credible proof of income and repayment reliability, enabling greater credit access for migrants and their families across borders.

To better understand how this vision can be brought to life, TransUnion is exploring privacy-centric data-sharing technologies, like the recently announced partnership with Omnisient, which would facilitate secure collaboration between institutions without exposing personally identifiable information.

Cross-border payments in Africa are advancing rapidly. Mobile wallets, blockchain, stablecoins and supportive regulations are making payments faster, cheaper and more accessible. At the same time, TransUnion is playing a key role in helping millions of previously excluded Africans build credit and access formal financial services. Together, these advances are creating new opportunities for individuals, businesses and economies across the continent. 

Africa is rich in data — from mobile usage to digital transactions — but much of it remains outside the reach of the formal financial system. Unlocking this data is key to fairer pricing, smarter lending and broader financial inclusion.

At TransUnion, we’re constantly exploring new ways to help our partners turn alternative data into opportunity. This includes looking at how insights from cross-border FinTechs and digital platforms could, in future, support more inclusive and informed credit decisions.

Our current solutions are designed to build the foundations:

• Digital onboarding with KYB, KYC, PEP and sanctions screening for fast, compliant customer verification
• Robust fraud detection and prevention to help mitigate risk and protect both lenders and consumers
• Data monetisation tools to help partners unlock value from alternative datasets
• Alternative scoring frameworks that go beyond traditional credit histories to widen access

Together, these solutions will help power trust, scale financial access and contribute to long-term economic growth across Africa