Kigali [Rwanda], March 1: A lack of awareness remains a major challenge to the growth of cross-border digital payments in Africa, making collaboration among fintech companies, regulators, and financial service providers crucial to driving change, a fintech expert told Xinhua in a recent interview.
"Awareness of cross-border payments remains a challenge. Many people and businesses still rely on costly traditional banking systems, which increase transaction costs and limit financial access," said Blen Tenaw Alamayehu, business development manager at Thunes, a Singapore-based cross-border payments company.
On the sidelines of the second edition of the Inclusive FinTech Forum (IFF) in Kigali, the Rwandan capital, Alamayehu on Wednesday emphasized the need for stronger collaboration to address this issue. "Through partnerships with mobile networks, payment service providers, and banks, we aim to provide secure, fast, and cost-effective cross-border payment solutions."
She highlighted the increasing adoption of digital payments across Africa and the critical role of cross-border financial solutions.
"We are witnessing a significant shift from cash transactions to digital payments in Africa," Alamayehu said. "Through partnerships with mobile operators like M-Pesa and MTN, we are enhancing financial access for individuals and businesses by facilitating seamless cross-border payments."
Alamayehu, whose company operates in about 130 countries with over 500 partners, including banks, mobile wallets, and payment service providers, stressed that traditional banking systems often lead to high transaction costs, making payments expensive for low-income individuals.
"Traditional banking networks increase costs and slow down transactions. By bypassing these networks and integrating directly with payment systems, we offer cross-border payments that are faster, more affordable, and highly secure," she explained.
"At the African level, digital payments can empower SMEs (small and medium enterprises) and emerging markets to compete globally by providing them with secure, fast, and cost-effective transaction solutions," she said. "Cross-border payments play a crucial role in revolutionizing the global economy. Without them, SMEs and individuals would struggle to compete internationally."
Looking ahead, Alamayehu flagged partnerships, policy reforms, and digital innovation as key drivers of Africa's financial inclusion.
"No single entity can drive change alone. Collaboration between fintech companies, banks, and regulators is essential to creating a sustainable and inclusive financial ecosystem," she said.
The IFF, held from Monday to Wednesday, brought together over 2,500 global and regional delegates, including policymakers, investors, and industry leaders, to discuss strategies for driving fintech-led financial inclusion and economic integration.
Addressing the forum, Wamkele Mene, secretary general of the African Continental Free Trade Area Secretariat, said Africa is rapidly emerging as a global fintech hub, showcasing record growth and promising future potential.
With a 32-percent compound annual growth rate, the continent is set to become the fastest-growing region in fintech revenue, and its fintech market is expected to reach approximately 65 billion U.S. dollars by 2030, Mene said.
Source: Xinhua News Agency
