Africa’s digital payments landscape needs interoperability, inclusivity

An expert and key actor in Africa’s digital payments sector, Mohamed Elbelamachi, has hailed the significant progress the continent has recorded in this area, citing the steady transition from cash-based transactions to instant payment systems.

In an interview with Biometric Update, the Regional Managing Director for Francophone Africa at payments and financial services company, Network International, emphasized interoperability and inclusivity as fundamental pillars that can support and amplify the impact of that transition.

Network International is a UAE-based e-commerce payments firm founded in 1994, working across the Middle East and Africa.

There’s palpable progress, both from individual countries and regional economic communities, in the building of interoperable systems in Africa.  In East Africa, for instance, the East African Community (EAC) and the Intergovernmental Authority on Development (IGAD) have been working to dismantle cross-border digital payments barriers. But several challenges still limit optimal interoperability.

“I think we are living an exciting chapter for Africa’s payments story. When I started working in payments, cash was king almost everywhere. Today, in cities like Abidjan, Dakar, and Douala, you will see people paying for a taxi with a QR code or sending money instantly to family in another region,” Elbelamachi says.

“We have proven that Africa can leapfrog traditional banking models. But there are still challenges around interoperability, cross-border efficiency, and ensuring rural communities are not left behind. The potential is huge, and the focus now is turning that potential into something that works seamlessly for everyone, everywhere.”

Elbelamachi, who has more than 20 years of leadership experience in the payments and financial services industry, points out that it is also important for African countries to put in place systems that enable businesses to move money across borders as quickly and affordably as they move goods.

Payment barriers holding back trade

Such seamless payment systems, he says, are vital especially at a time when the continent is banking on initiatives like the AfCFTA to facilitate trade transactions and grow its economy.

“In West Africa, I have spoken with small exporters who can get a shipment to a neighbouring country in a day, but payments can take three to five days. That gap holds back trade. We need regional settlement systems, harmonized regulations, and true interoperability. Imagine a trader in Lomé [Togo’s capital] getting paid instantly by a buyer in Bamako [Mali]; that is when AfCFTA’s promise becomes real,” says Elbelamachi.

To make digital payments interoperability smoother, the former Mastercard and Visa executive acknowledges that there are challenges which must be effectively addressed.

For context, in a report in June, the World Bank demonstrated that interoperability can drive digital payments adoption, while two experts from the institution recently suggested some foundational models to achieve full digital payments interoperability in Africa, and elsewhere in the world.

“The biggest challenge is aligning the different systems and regulations. In Francophone Africa alone, we have variations in standards, legal frameworks, and data privacy rules. There’s also the issue of public trust where people need to be confident on the security of their personal data,” the Network International official notes.

“But the advantages are huge, from faster onboarding for customers, lower fraud rates, to much wider access to services. I have seen rural customers open accounts in minutes when their national ID is linked to the payment system. It is definitely a game-changer.”

DPI momentum is building

The Network International executive recognizes digital payments as an important component of digital public infrastructure (DPI), which many African nations are currently in the process of building to drive their digital transformation agenda.

To him, there is positive momentum, even as the challenges are still legion. “I have seen countries like Senegal and Benin make serious strides with national ID systems, digital address platforms, and interoperable switches,” he tells Biometric Update.

“In some cases, governments are even making all social benefit payments digital, thereby boosting transparency and bringing more people into the financial system. The key now is ensuring that these systems talk to each other and can scale as demand grows.”

Nigeria is another country leveraging its national digital ID system to strengthen its social protection scheme by streamlining government’s social relief cash payments to poor households.

Incorporating biometrics

Elbelamachi also recommends that as part of efforts to drive financial inclusion, governments should consider incorporating biometrics into their national digital ID system for identity verification, citing an example in rural Guinea.

“Biometrics can be a powerful equalizer. In rural Guinea, for example, I have interacted with people who never had formal identification but can now access financial services through fingerprint or facial recognition linked to a national ID.”

“If governments integrate biometrics into their ID programs in a secure environment that guarantees data privacy, they can make financial inclusion more real and security much stronger,” he recommends.

Network International, Elbelamachi says, is one company poised to strengthen Africa’s digital payments ecosystem with solutions that go beyond just making it possible to send and receive payments.

“In Francophone Africa, we are essentially building the ‘rails’ that allow the rest of the ecosystem to operate smoothly. We have invested in modern, secure processing platforms so banks, fintechs, and merchants can focus on serving customers instead of worrying about making or receiving payments,” he explains.

He adds: “We also provide fraud detection tools, loyalty solutions and data insights to help our partners grow. We work closely with local teams and regulators to make sure our solutions fit each market’s unique needs.”

Over the years, the United Nations Economic Commission for Africa (UNECA), together with the World Bank and digital payments advocacy non-profit, AfricaNenda, have called for an accelerated adoption of inclusive and interoperable digital payment systems as one of the ways of driving financial inclusion across Africa.

Fraud prevention vital from design stage

One major threat to digital payments is fraud which has become sophisticated lately with the emergence of generative AI tools. To Elbelamachi, this is something to be taken seriously, notably from the design stage of a digital payments system.

“I have always believed that fraud prevention must be part of the initial design, not something you add later. Real-time transaction monitoring, AI-powered anomaly detection, and strong customer authentication are essential. We have seen fraudsters become more sophisticated, sometimes even using AI,” he notes.

In the face of these threats, the executive says one of their successes has been “creating early-warning networks with banks and fintechs in the region, so we can respond to threats as they emerge, not after the damage is done.”

Think inclusion early enough

Asked about what advice he would give to governments designing DPI frameworks to ensure that digital payment systems are secure, inclusive, and interoperable, Elbelamachi said he would suggest three things.

“First, build with security from day one as it is much harder to add it later. Second, think inclusion early by ensuring women, small businesses, and rural communities are part of the design. Third, commit to interoperability both within your borders and across them.”

He adds that “throughout the process, work hand-in-hand with the private sector since in my experience, those partnerships deliver the fastest and most sustainable results.”

Partnerships with private sector can create “magic”

Speaking further on the importance of private sector partnerships, Elbelamachi says they are always useful in setting the pace.

“We bring innovation, speed, and the ability to respond to customer needs quickly. In Francophone Africa, I have seen fintechs develop brilliant solutions that meet local realities, while established banks bring the trust and scale needed for adoption.”

“But the magic happens when we work together with governments where their reach and regulatory support, combined with our innovation, creates ecosystems that are both inclusive and resilient,” he states, adding that this is at the heart of their purpose at Network International.

“Our purpose is to help businesses and economies prosper by simplifying payments. Every time we make it easier for a merchant to accept digital payments or a consumer to transact securely, we are helping create opportunity, build trust, and grow the digital payment ecosystem.”

Article Topics

Africa  |  biometric payments  |  biometrics  |  digital identity  |  digital payments  |  digital public infrastructure  |  financial inclusion  |  fraud prevention  |  interoperability  |  Network International