Adapt or Miss Out: Why African Businesses Should Embrace Digital Payments

By Paul Mutethia

The face of businesses across Africa is slowly changing, driven by the need to digitize operations. From local markets to regional retail chains, business owners are re-evaluating how they transact, serve customers, and sustain growth and competitiveness in an increasingly connected world. Whether it is automating supply chains, managing inventory through cloud-based systems, or receiving instant payments from customers, technology is redefining what it means to run a scalable and adaptable enterprise.

Let us focus on payments and narrow down to Kenya. If you were to talk to business owners about the challenges they face in payments, the answers would probably be common. You will hear that someone has lost a customer because they picked something they liked, but at checkout, they wanted to pay with a method that the seller does not support. Another response you may receive is that systems collapse during periods of high demand. The merchant fees seem manageable at first, then creep up, eating into margins, or the classic “acha nitafute change” situation that plagues cash payments.

Payments are at the heart of every transaction, every customer relationship, and every growth opportunity, yet they are often overlooked. They can mean the difference between growth and shutting down because they determine whether a business will close every viable sale or not.  That is why companies must adopt a scalable, flexible payment method, not just for operational ease, but also for profit, productivity, and growth. This is where digital payments come in.

Across Africa, projections indicate that the continent’s digital payments economy will reach around US$1.5 trillion by 2030. Meanwhile, reports suggest online payment volumes are expected to grow at roughly 34% per annum through 2025. For businesses, this is not about just cost-cutting. It is about tapping previously unreachable revenue streams, increasing transaction output, and elevating productivity.

In East Africa, the momentum is even clearer. For example, in Kenya, the digital payments market is projected to grow at a compound annual growth rate (CAGR) of 14.1% between 2024 and 2028, reaching a market size of US$14.54 billion by 2028. That means that if your business only accepts cash or a limited payment method today, you risk missing out on a growing share of commerce both locally, regionally and internationally.

So, what can companies do to shift from cash-heavy systems to seamless, secure, and integrated digital payments? As a start, they can invest in scalability, which means building systems that not only meet today’s transactional needs but can grow with the business. This means adopting payment solutions that are flexible enough to integrate multiple channels, from mobile money and cards to QR codes and e-commerce gateways, under one platform. A scalable system ensures that as customer preferences evolve, businesses can adapt without overhauling their infrastructure. It also enables a business to tap into payment opportunities in different formats, thus maximizing earnings.

Another major shift happening right now is the move towards real-time payment systems. Central banks and industry players are building instant payment infrastructures that allow money to move seamlessly between banks, mobile wallets, and fintech platforms. This evolution is reducing settlement delays, improving cash flow, and creating new possibilities for customer engagement. For businesses, this means faster access to funds, lower transaction costs, and the ability to serve customers across multiple payment channels without friction.

Further, a key consideration is the shift toward regional payment integration, leveraging systems that are being put in place. As an example, the Common Market for Eastern and Southern Africa (COMESA) recently unveiled its Digital Retail Payments Platform (DRPP), which enables cross-border trade to be settled in local currencies rather than relying on the US dollar. This is a true game-changer for companies operating across borders as it cuts transaction costs (targeting below 3%), reduces currency ris,k and simplifies payments for SMEs. For a business in Nairobi that sources from Kigali or sells to Lilongwe, this platform means smoother transactions, faster settlement, and lower fees.

Beyond accepting payments, the ecosystem has now advanced to offer merchants the ability to access dashboards with insights into their business. Data is king right now, and if used right, companies can access which product sells best on weekends, which region drives the most demand, or which payment method leads to abandoned carts, helping them make sharper choices.

This demand for adaptable payment systems has led to innovations in the sector, with businesses like Network International (Network) setting up on the continent to provide localized solutions. We now see merchants being able to access payment solutions like POS machines that allow multi-currency transactions, and machines that allow merchants to collect both card and mobile wallet payments at the same time. For businesses, this means they can tap into both physical and online clients seamlessly, without investing too much money in the payment system itself. The best part? Solutions by payment service providers like Network allow scalability for all business sizes. Whether you are Mama Mboga who uses a QR code or a large enterprise needing support for payments, refunds, and loyalty programs, Network Solutions can do it all.

So, while it takes a lot to set up and run a profitable business, payment acceptance should not be one of the hindrances to growth. Every business should think about its payment needs and the plans it has for its company, and then take advantage of the solutions available to meet its needs. As you have seen, the future is so bright for those who adapt.

Read Also: Airtel Money, I&M Bank Seal Deal to Boost Digital Payments, Expand Merchant Access, and Drive Financial Inclusion Across Kenya

The writer is Head of Commercial, Acquiring, Network International (Network)