"Push to Digitise How Africans Pay and Move Cash Sends Fintechs Into Merger Frenzy"

" Push to Digitise How Africans Pay and Move Cash Sends Fintechs Into Merger Frenzy \r\n\r\n Africa\u2019s fintech sector is seeing a surge in deal-making as firms race to dominate the continent\u2019s booming cash transfer and digital payments market, projected to hit US$1.5 trillion by 2030 \r\n\r\n Seth Onyango, bird story agency \r\n\r\nFierce competition in Africa\u2019s digital and cross-border payment sector is fuelling a wave of mergers and acquisitions (M&A), as fintech giants, banks, and telcos pursue strategic tie-ups to expand their market share.\r\n\r\nAs rivalry heats up, companies are betting on consolidation to outmanoeuvre competition in an increasingly fractured market, where innovation and expansion determine survival.\r\n\r\nThe push reflects soaring demand for faster, cheaper, and more inclusive financial services in Africa, where Mastercard\u2019s report anticipates digital transactions to reach $1.5 trillion by 2030.\r\n\r\nAccording to PwC\u2019s Global M&A Trends 2023, Africa\u2019s tech and fintech sectors saw a 22% year-on-year increase in deal volume in 2023, driven by cross-border payment inefficiencies and investor appetite for scalable solutions.\r\n\r\nTellingly, Disrupt Africa's analysis showed that 26 African fintech startups were acquired between June 2021 and July 2023, a 271% surge compared to just seven deals in the preceding two-year period.\r\n\r\nMcKinsey analysis further suggests that, with these tailwinds, fintech revenues could reach up to $47 billion by 2028, representing about a five-fold increase from its value of $10 billion in 2023.\r\n\r\n \r\n\r\nAfrica\u2019s digital payments sector has long been a battleground between mobile money operators like M-PESA, agile fintech startups, and traditional banks.\r\n\r\nLandmark deals like WorldRemit\u2019s $500 million acquisition of Sendwave in 2020 have also paved the way, streamlining remittances between Africa and the diaspora.\r\n\r\nAfrica\u2019s remittance flows hit $100 billion in 2024, while intra-African trade remains hamstrung by costly and inefficient payment systems.\u00a0 Fintechs like Flutterwave, Chipper Cash, and Wave have capitalised on this gap, but mounting competition is forcing even market leaders to consolidate.\r\n\r\nAs cross-border trade and remittances surge, companies are turning to M&A to rapidly scale infrastructure, acquire technical expertise, and secure regulatory approvals across markets.\r\n\r\n\u201cThe future of African fintech hinges on interoperability and ecosystem partnerships,\u201d notes a 2024 McKinsey report, Redefining Success: A New Playbook for African Fintech Leaders.\r\n\r\n\u201cVery often, these deals are prompted by investors looking to consolidate start-ups to create bigger and more profitable entities.\u201d\r\n\r\nFor instance, last year in Nigeria, Ventures Platform facilitated the acquisition of Traction Apps, a payment and inventory solution for small businesses, by B2B e-commerce startup OmniRetail.\r\n\r\nNigerian payments unicorn Flutterwave has also since acquired Disha and joined forces with payment processing specialist, Acquired.com.\r\n\r\nIn 2021, the firm also struck a pivotal partnership with MTN, integrating its payment infrastructure with MTN Mobile Money (MoMo) to deliver cash directly to mobile wallets across Cameroon, C\u00f4te d\u2019Ivoire, Rwanda, Uganda, and Zambia.\r\n\r\nThis alliance, part of MTN\u2019s pan-African expansion strategy, aimed to deepen financial access for unbanked populations while positioning both firms as key players in the remittance race. By 2023, MTN reported a 40% increase in mobile money users across these markets, highlighting the partnership\u2019s role in driving adoption.\r\n\r\nSimilarly, South Africa\u2019s MFS Africa bought US-based Global Technology Partners for $34 million, gaining access to 180 million mobile wallets (White & Case M&A Explorer).\r\n\r\nTelecom giants are also joining the fray, with Airtel Money\u2019s partnership with Standard Chartered now enabling real-time transfers across 14 African countries, a strategy McKinsey describes as combining \u201cscale, localised solutions, and seamless integration across channels.\u201d\r\n\r\nTraditional banks, once sidelined by mobile money\u2019s explosive growth, are now counterattacking through strategic acquisitions.\r\n\r\nKenya\u2019s Equity Bank, for instance, expanded its footprint in Central Africa by acquiring Congolese lender ProCredit in 2022, aiming to integrate its EazzyNet digital platform with mobile money ecosystems.\r\n\r\nMeanwhile, Nigeria\u2019s Access Bank has aggressively acquired smaller lenders in Zambia, Mozambique, and Angola, explicitly citing cross-border payment synergies.\r\n\r\nThis mirrors Kenya\u2019s PesaLink strategy, where banks pooled resources to launch a bulk-transaction platform rivalling M-PESA. Now, similar alliances are emerging regionally.\r\n\r\nThe Africa Continental Free Trade Area (AfCFTA) has further galvanised efforts, with the Pan-African Payment and Settlement System (PAPSS) aiming to cut transaction costs by $5 billion annually.\r\n\r\nStill, momentum is building. With AfCFTA promising a US$3.5 trillion continental market, the rush to merge, acquire, and ally shows no sign of slowing.\r\n\r\n bird story agency\u00a0 \r\n\r\n \r\n\r\n "

"Push to Digitise How Africans Pay and Move Cash Sends Fintechs Into Merger Frenzy"

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