Who gets access to Africa's payment rails?

Africa has made significant progress in building instant payment systems over the past decade. Today, countries can process payments in seconds instead of hours. But as that infrastructure matures, the conversation is changing. The challenge is not just about how quickly money moves. It is about who can access the infrastructure, how much it costs to use and whether different parts of the financial system can connect without unnecessary barriers. Governments, central banks and private companies continue to invest in payment infrastructure across the continent. In these markets, access remains concentrated among banks, while fintechs, mobile money operators and other financial institutions still connect through intermediaries. That raises a different question. Can a payment system be considered inclusive if only a limited group of institutions can participate directly?

The bigger challenge is access

Instant payment systems are expected to operate around the clock, settle transactions almost immediately and give users confidence that payments are final. Those capabilities are becoming standard across many African markets. The harder task is making sure the infrastructure is accessible to more participants. AfricaNenda’s framework for inclusive instant payment systems looks beyond transaction speed. It considers whether different financial institutions can connect, whether customers can move money across providers and whether the cost of using the system makes sense for low value payments. In several countries, fintechs and mobile money providers still rely on commercial banks to access national payment switches. That arrangement gives banks an important role in the ecosystem, but it can also introduce additional costs and commercial dependencies. The same applies to consumers. A payment system built mainly around banking apps may work well for smartphone users while offering fewer options for people who still rely on USSD services, agents or feature phones. Fast infrastructure does not automatically mean broad access.

Nigeria has built one of the continent’s strongest payment networks

Nigeria is frequently cited because of the breadth of institutions connected to its payment infrastructure. The Nigeria Inter Bank Settlement System (NIBSS) supports participation from banks, microfinance institutions, mobile money operators and other licensed financial providers. That wider participation has helped make instant payments part of everyday transactions rather than a service used mainly for bank transfers. Even so, Nigeria’s experience reflects the country’s own market. Its large population, sizeable financial sector and long standing push towards electronic payments have created conditions that smaller economies may struggle to replicate. Strong infrastructure also does not eliminate customer frustrations. Failed transfers, fraud and slow dispute resolution continue to affect how users experience digital payments.

Kenya faces a different challenge

Kenya’s PesaLink was developed to simplify transfers between bank accounts. It continues to perform that role, but Kenya’s payments market has evolved beyond banking. Mobile money has become central to everyday transactions, while SACCOs and fintech companies have expanded their presence across the financial system. That means a payment platform designed primarily for banks does not necessarily capture how most payments take place today. Instead of replacing existing platforms, there may be greater value in improving how different payment networks work together. Interoperability has become just as important as the infrastructure itself.

Connecting existing systems may matter more

African markets already have multiple payment networks operating side by side. Banks, mobile money providers, fintechs and card networks all serve different parts of the market. The challenge is making it easier for money to move between them. That suggests the next phase of payments policy should focus less on building another national payment rail and more on reducing the friction between existing systems. Opening payment infrastructure to more participants also requires balance. Direct access can lower costs and encourage competition, but it also increases settlement risk. Regulators still need to ensure participants have the financial resources and operational capacity to manage that responsibility. Domestic payment systems have improved across much of Africa, but cross border transactions remain slower and more expensive. Businesses continue to navigate foreign exchange rules, licensing requirements and multiple intermediaries when making payments between countries. Regional initiatives such as the Pan African Payment and Settlement System (PAPSS) aim to simplify those transactions, but they cannot remove differences in national regulations or currencies. Technology can improve how payments move. It cannot solve every policy challenge. Africa has largely addressed the question of payment speed. The bigger issue now is participation. Who can connect directly to payment infrastructure? How much should access cost? How should settlement risk be managed? And how easily can different payment networks work together? Those questions are likely to shape the next stage of Africa’s payments ecosystem far more than reducing settlement times by another few seconds.