Africa’s Next Fintech Frontier: Interoperability or Infrastructure?
Africa’s fintech story is one of resilience and reinvention. Over the past decade, the continent has leapfrogged traditional banking systems to become a global leader in mobile money adoption, with platforms like M-PESA, MTN Mobile Money, and Airtel Money redefining how millions send, save, and spend.
Yet as digital finance grows, a critical question emerges: what’s the next frontier? Is Africa’s fintech future about solving interoperability, the ability for payment systems to “talk” to one another seamlessly, or about building the deeper infrastructure that underpins digital economies?
The answer is not either-or. It’s both. But understanding how they intersect is key to unlocking Africa’s next trillion-dollar opportunity.
Why Interoperability Matters
Today, Africa has more than 500 million registered mobile money accounts, according to the GSMA. But fragmentation remains a massive hurdle. In many countries, a user on MTN cannot send money directly to a customer on Airtel Tigo without extra steps, higher costs, or even physical cashouts.
This lack of interoperability creates friction that limits scale:
Consumers face higher fees and limited convenience.
Merchants struggle with reconciling multiple payment systems.
Startups are forced to integrate across a patchwork of APIs, adding time and cost.
The benefits of solving this are clear. Ghana’s interoperability system (GhIPSS) has enabled smoother transfers between banks and mobile wallets, making the country one of the most seamless payment environments in Africa. Rwanda is building similar frameworks, while Nigeria’s journey remains more complex but critical.
The bottom line is, Interoperability expands financial inclusion by making digital money universally usable no matter the provider.
Why Infrastructure Matters
Interoperability can only go as far as the infrastructure allows. Without reliable broadband, energy, identity systems, secure payment switches, and regulatory frameworks, seamless payments will always hit a wall.
Here are the infrastructure gaps that fintechs and policymakers must prioritize:
Digital Identity: Many Africans still lack formal IDs, making KYC (Know Your Customer) and compliance a bottleneck. Strong identity systems like Ghana Card are paving the way, but more is needed.
Energy & Connectivity: Sub-Saharan Africa has 48% smartphone penetration (GSMA, 2021) and persistent electricity gaps. Without power and data, mobile wallets can’t thrive.
Cybersecurity & Trust: As digital money grows, so do fraud risks. Infrastructure isn’t just physical; it’s about governance, regulation, and trust frameworks.
Secure Payment Switches: In order to eliminate $5 billion in annual foreign currency exchanges transaction cost, cross-border financial infrastructure should be designed to facilitate secure and efficient payment transactions across Africa.
Countries like Kenya (via Huduma Namba) and Nigeria (via NIN) are investing in ID systems, while pan-African initiatives like the Pan-African Payment and Settlement System (PAPSS) and Smart Africa are establishing shared digital infrastructure among the 54 countries in Africa.
Without infrastructure, fintech adoption risks being urban-centric and exclusionary, leaving behind the very communities it promises to serve.
The Real Opportunity: A Dual Approach
Africa doesn’t have the luxury of choosing between interoperability and infrastructure, both are essential, and their progress is interdependent.
Interoperability drives adoption: If consumers can pay anyone, anywhere, they’re more likely to use digital systems.
Infrastructure ensures sustainability: Without energy, IDs, and regulation, adoption will plateau.
The continent’s next wave of fintech growth will depend on ecosystem alignment with governments, telcos, banks, and startups working together rather than in silos.
What Founders and Investors Should Watch
National Payment Switches: Countries like Ghana and Rwanda are early leaders, and their models may inspire broader regional adoption.
Pan-African Infrastructure Projects: From the African Continental Free Trade Area (AfCFTA) to Smart Africa, continental frameworks could unify fragmented markets.
Private-Sector Partnerships: Startups embedding interoperability into services like Flutterwave or Chipper Cash are showing how business models can drive integration even faster than regulation.
Policy Shifts: Regulators who view fintech as partners (not threats) will accelerate both infrastructure and interoperability. Policies may restrict partners from operating just like the recent incidence between Bank of Ghana and Top Connect based on compliance and other unstated reasons.
Conclusion
Africa’s fintech frontier is not a single choice between interoperability or infrastructure. It’s about building both in tandem, seamless connections layered on strong foundations.
When payment systems can “talk” to each other, and when the rails beneath them are strong enough to carry scale, the continent won’t just lead in mobile money adoption. It will lead in inclusive digital economies that empower millions and attract global capital.
The future of African fintech will be built on bridges and backbones but the question is: who will build them first?
