Departmental Papers

Digital Payment Innovations in Sub-Saharan Africa

By Luca A Ricci, Calixte Ahokpossi, Saad N Quayyum, Rima A Turk, Anna Belianska, Mehmet Cangul, Habtamu Fuje, Sunwoo Lee, Grace B Li, Xiangming Li, Yibin Mu, Nkunde Mwase, Jack J Ree, Haiyan Shi, Vitaliy Kramarenko

June 27, 2025

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Luca A Ricci, Calixte Ahokpossi, Saad N Quayyum, Rima A Turk, Anna Belianska, Mehmet Cangul, Habtamu Fuje, Sunwoo Lee, Grace B Li, Xiangming Li, Yibin Mu, Nkunde Mwase, Jack J Ree, Haiyan Shi, and Vitaliy Kramarenko. "Digital Payment Innovations in Sub-Saharan Africa", Departmental Papers 2025, 004 (2025), accessed June 28, 2025, https://doi.org/10.5089/9798400232220.087

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Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper takes stock of developments and policy issues related to digital payments innovations across sub-Saharan African (SSA), including central bank digital currency (CBDC), fast payments systems (FPS), mobile money, and crypto assets, which are now at the forefront of policymakers’ attention in the region. Drawing on insights from a recent IMF survey of SSA central banks (Ricci and others, 2024), the analysis is grounded in the unique characteristics of SSA compared with other regions. The paper offers tailored recommendations related to policy, regulation, and design, aimed at strengthening the digital payment landscape in the region. It notes the important role of strengthening digital infrastructure and leveling the playing field for private sector involvement through an enabling, competitive, interoperable and secure operating environment. The development of mobile money and FPS should be encouraged. CBDCs can complement these and could be pursued when there are well-identified market failures or other strategic reasons that require public intervention in the digital payment space. While crypto assets (especially adequately backed stablecoins) can support financial innovations, they are also associated with risks that should be contained through comprehensive regulations. Crypto assets should not be adopted as legal tenders. Stronger collaboration across borders can foster efficiency gains and international interoperability of payment systems.

Subject: Central Bank digital currencies, Currencies, Digital financial services, Digitalization, Financial inclusion, Financial markets, Fintech, International organization, Mobile banking, Money, Payment systems, Political economy, Technology

Keywords: Africa, Anti-money laundering and combating the financing of terrorism (AML/CFT), CBDC, Central Bank digital currencies, Crypto Assets, Currencies, Digital Finance, Digital financial services, Digital Payments, Digitalization, Fast Payment Systems, Financial inclusion, Fintech, Global, Mobile banking, Mobile Money, Nigeria, Payment systems, Sub-Saharan Africa, Sub-Saharan Africa, West Africa

Publication Details

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