DailySun
This article is sponsored by Mastercard
The fast-changing digital landscape requires companies to creatively adapt and innovate to meet the evolving needs of businesses and consumers.
Mastercard leads this transformation in Africa by integrating cutting-edge technology with strategic partnerships to drive digital change, support businesses, and foster financial inclusion. This dedication has been central to Mastercard’s global mission for many years.
Africa’s journey in this realm is particularly exciting, fueled by a youthful, vibrant population and an increasing appetite for digital solutions. African merchants and communities have embraced technology, frequently outpacing global trends as they develop and thrive.
“Technology is an invaluable tool. It eases life and unleashes possibilities we never thought possible. At Mastercard, we are relentlessly exploring ways to harness the latest technologies, innovate continually, and build on existing structures to make transactions easier, safer, and more seamless,” says Dimitrios Dosis, President for Eastern Europe, the Middle East, and Africa at Mastercard.
Historically, digital commerce has struggled to find the right balance between security and user experience, often sacrificing one for the other. However, advancements like tokenization are enhancing both security and transaction efficiency, while AI plays a crucial role in identifying patterns, detecting fraud, and customizing offerings.
Speed is another critical element. As economies evolve, the demand for quick results increases. In commerce, speed means faster payments and accelerated growth, which is why real-time payments are a catalyst for change.
A new chapter of African innovation
In a groundbreaking move, Mastercard has launched real-time card payments, choosing Africa as the site for its global debut. South Africa will be the first country globally to experience this shift, enabling same-day payouts for merchants and enhanced financial control.
“Instant and safe payments can greatly benefit businesses and economies,” Dosis states. “They provide increased visibility and enhance liquidity—exactly what businesses need for growth and confidence. For the wider economy, this rapid flow of money can encourage growth and innovation across numerous sectors.”
This historic rollout by Mastercard will be supported through innovative products, upgraded networks, and strategic partnerships, including collaboration with ACI, empowering South African acquiring banks to efficiently transition to real-time transaction processing standards.
The benefits of real-time payments go beyond speed; they improve accuracy, increase transparency, and ensure reliability throughout the payment ecosystem. The continuous embrace of such innovations is crucial for shaping Africa’s economic future.
Enhancing technological infrastructure
However, for payment innovation to flourish, it is essential to have strong infrastructure, standards, frameworks, and interoperability. Improving Africa’s current technological infrastructure is vital for driving advancements in payments and digital commerce.
“That’s why Mastercard partners with governments on infrastructure development for technologies that are relevant locally. Governments strive to enhance citizen welfare and support local commerce in ways that reflect African realities. They have ambitious goals and appreciate the blend of Mastercard’s global tech knowledge with locally impactful solutions,” Dosis elaborates.
Recently, Mastercard announced a significant investment in technological infrastructure in South Africa aimed at facilitating local processing, reducing latency, and further modernizing the local payments sector. This aligns with the South African Reserve Bank’s (SARB) National Payments System Strategy Vision 2025, which focuses on evolving payment systems to meet the needs of individuals and businesses while promoting financial inclusion.
This initiative extends beyond South Africa; countries like Ethiopia, Kenya, and Nigeria are rolling out targeted plans to tap into the potential of a growing digital economy. Infrastructure, innovation, and increased inclusion enable African markets to compete globally while addressing local needs.
Ongoing evolution in digital commerce
Dosis emphasizes that a successful digital commerce environment requires digital acceptance to be straightforward, secure, and accessible while providing consumers with choices. “Moreover, the ongoing digitization of supply chains streamlines interactions and transactions for both businesses and individuals. A merchant’s payment modalities often dictate how they compensate their suppliers, and once they integrate digital solutions, everything falls into a more coherent framework. Merchants gain access to a unified platform that digitizes their entire operations, including inventory management, order placements, and financing qualifications.”
An excellent example of this is Mastercard’s collaboration with the B2B commerce platform Boost, which offers digital payment wallets and integrated supply chain finance to support small businesses in the Fast-Moving Consumer Goods (FMCG) sector across Nigeria, Ghana, Kenya, Egypt, and Senegal. Furthermore, Start Path, Mastercard’s start-up engagement initiative, has welcomed Nigerian fintech, Duplo, which streamlines B2B transactions in Africa.
Conventional B2B payment methods have often been slow and cumbersome, but Mastercard is revitalizing this through digital invoices, automated reconciliation, and efficient cross-border payments. Collaborations with partners like Safaricom, Paypay, and Access Bank Group are enhancing Mastercard’s infrastructure, subsequently allowing merchants to adopt digital payments.
Partnering for growth
For Mastercard, the path toward innovation, empowerment, and enabling technology is closely linked with partnership and collaboration, merging global insights with local capabilities.
“For Africa’s growth towards a sustainable and inclusive economy, scale is crucial. An innovation or solution can possess great promise, but if it lacks the capacity to scale, its impact is limited. Therefore, empowering local governments, fintechs, start-ups, and telecom providers is essential,” Dosis clarifies.
In partnership with the African Development Bank, Mastercard co-chairs the MADE Alliance, aimed at ‘Mobilizing Access to the Digital Economy’. This initiative seeks to provide digital access to essential services for 100 million individuals and businesses over the next decade.
“Our commitment is to remain a reliable technology partner for Africa. The continent holds immense potential, characterized by a young population eager for digital progress, a vibrant merchant community, and a steadfast drive for success. I am confident Africa will continue to thrive, positively impacting countless lives. By 2075, one-third of the global population will be African, making it vital to advance digital infrastructure and empower those who can broaden financial access and stimulate economic growth. This is a key opportunity to inspire and benefit future generations,” Dosis concludes.
Africa is experiencing profound change, along with its people and businesses. Mastercard recognizes the significant potential in connecting these transformations with meaningful interactions that strengthen economies and empower the continent’s citizens.
