African payment firms experience a staggering 100% growth rate over a five-year span
African Companies Soar in Cross-Border Payments, Doubling Presence in Top 100 List
A significant surge in African companies participating in cross-border payments has been observed, with the number reportedly doubling since 2019. This growth is attributed to increasing regional trade integration and innovative financial technology solutions.
The 2023 Cross-Border Payments 100, a list recognizing and celebrating the industry's key players, now includes six African companies. These companies, including Orange Money, MPesa, Flutterwave, MFS Africa, Mukuru, and MTN Mobile, are headquartered or founded in Cote d'Ivoire and Kenya.
The geographical spread of companies in the top 100 is more dispersed than ever before, with Africa becoming a real hot spot. This trend is particularly evident in sub-Saharan Africa, where demand for mobile money is high, and almost half of mobile money users depend solely on it to access financial services. Increased competition and transparency are noticeable in this region.
The cost of living is rising in Africa, contributing to the demand for cross-border payment services. Remittances have generally been picking up in sub-Saharan and North Africa.
Daniel Webber, CEO and founder of the platform that published the list, stated that there has been a boom of key industry players in Africa. He added that the list, now in its fifth year, is widely recognized as the definitive benchmark of the industry.
The top 100 companies are separated into seven groups: VC/growth equity backed, independently owned, banks, private equity backed, crypto, and public companies. The list shows the proliferation of emerging markets in Africa, with Nigeria and South Africa being represented in the top 100.
Regional trade integration efforts, such as those by COMESA (Common Market for Eastern and Southern Africa), have been instrumental in unlocking the potential of the common market and supporting cross-border business growth. Cross-border business collaboration in Africa has historically been limited, but recent initiatives aim to increase such projects, indicating rising activity in cross-border trade and payments among African companies.
Fintech companies and neobanks are increasingly supporting international money transfers and cross-border payments for businesses operating in Africa and Asia. Platforms like Statrys offer multi-currency accounts and transparent services for businesses based in Hong Kong, Singapore, and the British Virgin Islands, catering to companies involved in cross-border payments, which could include African firms engaged in international trade.
While more relevant globally, the rise of Central Bank Digital Currencies (CBDCs) and collaborative cross-border digital payment projects could influence Africa's cross-border payments landscape in the near future.
In summary, the 100% increase in African companies involved in cross-border payments since 2019 reflects broader trends of improving regional integration, greater cross-border business cooperation, and adoption of fintech-driven payment platforms that facilitate international transactions for African firms.
- The growth in African companies participating in cross-border payments can be linked to their presence in the finance industry, as demonstrated by their inclusion in the Cross-Border Payments 100, a list celebrating key players.
- African companies in the finance sector are capitalizing on the demand for cross-border payment services, as seen in the increased competition and transparency in sub-Saharan Africa, where fintech companies and neobanks are supporting international money transfers.
