This article is sponsored by Mastercard
As the digital world rapidly transforms, the ability to create value depends on how organizations evolve and innovate to meet the changing needs of both businesses and consumers.
Mastercard stands at the forefront of this transition in Africa, merging cutting-edge technology with strategic partnerships to drive digital transformation, empower enterprises, and foster financial inclusion—principles that have defined Mastercard’s mission for many years.
The landscape in Africa is particularly exciting, fueled by a youthful, energetic population and an increasing enthusiasm for digital solutions. African businesses and communities have enthusiastically embraced technology, often leading global trends as they innovate and grow.
“Technology is an incredible asset. It simplifies life and opens up opportunities we never thought possible. At Mastercard, we are constantly exploring new ways to harness the latest technologies, innovate, and build on existing frameworks to ensure that transactions are easier, safer, and more seamless,” states Dimitrios Dosis, President for Eastern Europe, the Middle East, and Africa at Mastercard.
Digital commerce has historically faced the challenge of balancing security with user experience: improving security often negatively impacts user experience, and vice versa. However, innovations such as tokenization are now enhancing both security and transaction experiences, while artificial intelligence effectively identifies patterns, prevents fraud, and personalizes offerings.
Additionally, speed is a vital factor. The demand for quick outcomes grows as economies advance. In commerce, speed means quicker payments and accelerated growth, making real-time payments a game-changing force.
A new era of innovation in Africa
In a groundbreaking development, Mastercard has launched real-time card payments, selecting Africa for its global debut. South Africa will be the first country in the world to implement this system, enabling same-day payouts for merchants and giving them better control over their finances.
“Instant and secure payments can greatly improve businesses and economies,” Dosis notes. “It increases visibility and enhances liquidity—precisely what businesses need for growth and confidence. For the overall economy, this acceleration of money flow can invigorate growth and innovation across diverse sectors.”
Mastercard is driving this landmark rollout through innovative products, improved networks, and strategic partnerships, including collaboration with ACI, to empower South African acquiring banks to swiftly adapt to real-time transaction processing standards.
The benefits of real-time payments extend beyond speed; they increase accuracy, enhance transparency, and ensure reliability throughout the payment ecosystem. The ongoing adoption of such innovations will significantly shape Africa’s economic future.
Bolstering technological infrastructure
However, payment innovation cannot flourish in a vacuum. It necessitates a strong infrastructure, standards, frameworks, and interoperability. Improving the existing technological infrastructure in Africa is essential for advancing payment systems and digital commerce.
“That’s why Mastercard closely collaborates with governments to develop infrastructure that aligns with local technology needs. Governments aim to enhance the well-being of their citizens and promote local commerce in a way that resonates with African contexts. They have ambitious objectives and appreciate the combination of Mastercard’s global technological expertise with localized, impactful solutions,” Dosis adds.
In support of these initiatives, Mastercard has recently announced a significant investment in technological infrastructure in South Africa aimed at facilitating local processing, reducing latency, and further modernizing the local payments ecosystem. This aligns with the South African Reserve Bank’s (SARB) National Payments System Strategy Vision 2025, which emphasizes the necessity to evolve payment systems to meet the requirements of individuals and businesses while promoting financial inclusion.
This commitment extends beyond South Africa; nations like Ethiopia, Kenya, and Nigeria are implementing strategic plans to leverage the potential of a rapidly growing digital economy. Infrastructure, innovation, and increased inclusion are empowering African markets to compete globally while fulfilling the needs of local populations.
Ongoing evolution of digital commerce
Dosis emphasizes that a thriving digital commerce ecosystem necessitates that digital acceptance be straightforward, secure, and accessible while providing consumers with choices. “Furthermore, the ongoing digitization of supply chains simplifies engagement and transactions for businesses and consumers. How merchants choose to pay their suppliers often influences their payment methods. Upon embracing digital solutions, everything aligns into a more cohesive operation. Merchants gain access to a unified platform that digitizes their entire operation, including inventory management, order placement, and financing qualification.”
A prime example of this is Mastercard’s partnership with the B2B commerce platform, Boost, which provides digital payment wallets and integrated supply chain finance to empower small businesses in the Fast-Moving Consumer Goods (FMCG) sector across Nigeria, Ghana, Kenya, Egypt, and Senegal. Additionally, Mastercard’s start-up engagement initiative, Start Path, has welcomed Nigerian fintech, Duplo, which streamlines B2B transactions within Africa.
Traditional B2B payment methods have frequently been slow and cumbersome, but Mastercard is modernizing this landscape through digital invoices, automated reconciliation, and efficient cross-border payments. Collaborations with partners like Safaricom, Paypay, and Access Bank Group are enhancing Mastercard’s infrastructure, thus supporting merchants in processing digital payments.
Collaboration for growth
For Mastercard, the path toward innovation, empowerment, and enabling technology is deeply rooted in partnership and collaboration, linking global knowledge with local capabilities.
“In Africa’s journey toward a sustainable, inclusive economy, scalability is crucial. An innovation or solution can have amazing potential, but if it cannot be scaled, its impact is limited. Hence, empowering local governments, fintech companies, start-ups, and telecommunications is essential,” Dosis explains.
In cooperation with the African Development Bank, Mastercard co-chairs the MADE Alliance, which is focused on ‘Mobilizing Access to the Digital Economy’. This initiative aims to provide digital access to essential services for 100 million people and businesses within the next decade.
“Our commitment is to remain a reliable technology partner for Africa. The continent has immense potential, marked by a youthful population eager for digital advancements, a lively merchant community, and a resilient drive for success. I am confident that Africa will continue to prosper, positively affecting more lives than ever before. By 2075, one-third of the global population will be African, making it essential to enhance digital infrastructure and empower those capable of expanding financial access and driving economic growth. This is a crucial opportunity for inspiring and benefiting future generations,” Dosis concludes.
Africa is undergoing a profound transformation, as are its people and businesses. Mastercard recognizes significant potential in connecting these changes to impactful exchanges that strengthen economies and empower the continent’s people.
