As digital technology and innovation continue to push the frontiers of the financial landscape, Africa is witnessing a surge in digital payments, becoming a formidable force in the sector.
Fintechs, banks, and other financial institutions are leading the adoption of digital transaction solutions, providing various payment methods to their customers while driving financial inclusion and enhancing customer experiences for business owners and consumers.
According to the 2024 Prime Time for Real-Time report published by ACI Worldwide in partnership with GlobalData, Africa had the highest real-time share of electronic payments in 2023, accounting for 40% with 8.2 billion real-time payment transactions. This figure is projected to reach 21.7 billion by 2028, with a CAGR of 21.2% from 2023 to 2028.
Despite these significant advancements, there remains a need for more digital infrastructure solutions to address the challenges of modern real-time payments. Enhanced infrastructure will reduce reliance on cash, build trust and confidence, and foster cross-border payments across the continent. As the payment ecosystem evolves, industry players must find ways to collaborate and leverage each other’s strengths to better serve customers and stay ahead of the curve.
A prime example of such collaboration is the partnership between Interswitch Group, one of Africa’s leading digital payment and commerce companies, and ACI Worldwide, a global leader in real-time payments software.
For over 20 years, Interswitch and ACI Worldwide have joined forces to deploy innovative technology solutions to meet the urgent demands for digital payments in Africa.
To mark a new frontier of their long-term partnership, Interswitch and ACI Worldwide recently renewed their collaboration with a signing ceremony in Miami, USA, which consolidates Interswitch’s relationship with ACI from reseller to strategic partner status across multiple markets in the Sub-Saharan Africa region.
The core of this partnership lies in integrating ACI’s real-time payment solutions into Interswitch’s technology, establishing the core infrastructure for electronic transactions in Nigeria. This integration has paved the way for safe and efficient digital payments, including instant transactions and a drastic reduction in cash reliance, thereby improving payment experiences in Nigeria and other parts of Africa.
Nigeria is the leading real-time payments market in Africa, with 7.9 billion of the 8.2 billion real-time transactions recorded in the region in 2023. Real-time payments accounted for an impressive 82.1% of all electronic payments in Nigeria, demonstrating the positive impact of the partnership between Interswitch and ACI Worldwide.
Interswitch and ACI Worldwide recently held key stakeholder engagement events in Nigeria and Kenya. Themed “Modernizing Digital Payment Infrastructure for Innovation, Growth & Commercial Advantage” the events highlighted the transformative role of both companies in the future development of Africa’s digital payments landscape.
Mitchell Elegbe, Founder and Group Managing Director, Interswitch Group, emphasized the significant advancements gained through the partnership. “Interswitch’s long-standing partnership with ACI Worldwide has been instrumental in advancing Africa’s digital payment ecosystem. This collaboration has driven significant advancements in payment technology, streamlining processes, enhancing security, and fostering economic growth while promoting financial inclusion across the continent,” said Elegbe.
Santhosh Rao, Senior Vice President of MEASA at ACI Worldwide, highlighted ACI’s vision for the African financial services industry. “As a global leader in mission-critical, real-time payments software, ACI is dedicated to driving transformative change and sustainable growth within the African financial sector. Our vision is to empower institutions with innovative technologies that enhance operational efficiency, deepen financial inclusion, and elevate customer experiences. Through strategic partnerships and cutting-edge solutions, ACI aims to catalyze digital transformation and advance the financial landscape across Africa,” said Rao.
Jonah Adams, Managing Director of Digital Infrastructure and Managed Services (Interswitch Systegra) stressed the importance of collaboration to unlock the pan-African payments ecosystem and foster commerce and economic growth. “It is imperative for financial players to recognize the transformative potential of key partnerships and collaboration in boosting commerce and driving economic growth across Africa. Through value co-creation and collaboration, businesses can unlock new opportunities and facilitate seamless transactions that transcend borders,” said Adams.
The event also featured industry experts who discussed insights, case studies, and opportunities in real-time payment adoption, trends, and modern-day strategies to address concerns such as cross-border payments, modernization of core payment infrastructure for banks, open banking, and securing digital transactions.
As the future unfolds, the Interswitch and ACI collaboration will continue to revolutionize Africa’s payment ecosystem with emerging technologies and innovation, promoting financial inclusion, optimizing business efficiency, and boosting economic development across the African continent.