Femi-Lawal: Digital Payments Will Streamline Africa’s MSMEs Operations
Country Manager and Area Business Head for West Africa at Mastercard, Folasade Femi-Lawal, speaks about Africa’s digital payments economy, the opportunities that abound, and Mastercard’s initiative in simplifying cross-border transactions across Africa, among other issues. Emma Okonji presents the excerpts:
Expatiate on the Mastercard-commissioned report by Genesis Analytics projects that Africa’s digital payments economy will reach $1.5 trillion by 2030. What opportunity does this present for businesses and consumers?
Africa’s projected $1.5 trillion digital payments economy presents a transformative opportunity—for businesses to scale and for consumers to gain greater financial access.
For businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), which contribute over 50 per cent of Africa’s GDP, this shift means reduced reliance on cash, enhanced operational efficiency, and improved transparency and security. Traditionally, MSMEs in Africa have struggled with cash-based transactions, a challenge underscored by the World Bank, which estimates that 90 per cent of retail transactions in sub-Saharan Africa are still cash-based. This dependence on cash creates inefficiencies, security risks, and limited access to formal financial services.
Digital payments can help MSMEs streamline operations, improve cash flow management, and increase customer trust. For instance, Mastercard’s Tap on Phone technology enables businesses to accept payments via smartphones, bypassing the need for traditional POS terminals. This not only lowers costs but also provides a seamless payment experience for customers, even in rural or underserved areas.
For consumers, the shift to digital payments enhances financial access, security and convenience. With just a mobile device, consumers can pay bills, make purchases and send or receive money instantly, without relying on physical cash or traditional bank branches. This is particularly impactful in remote or underserved areas where formal financial infrastructure is limited or nonexistent.
Mastercard is actively enabling this transformation through partnerships with telecom providers and fintechs, addressing the continent’s rapidly growing internet penetration and financial inclusion rates. According to a Mastercard-commissioned report by Genesis Analytics, internet penetration in Africa is projected to grow at a compound annual rate of 20 per cent, while financial inclusion is expected to expand by 6 per cent annually.
To capitalize on these trends, our collaboration with MTN in 13 African markets is helping to facilitate seamless digital transactions by integrating Mastercard’s technology into mobile platforms. Similarly, the Airtel virtual card powered by Mastercard is enhancing access to online and cross-border payments, enabling consumers to participate in global e-commerce even if they don’t have a traditional bank account. These innovations offer consumers more choice, greater control over their finances and improved financial literacy over time.
Furthermore, Mastercard’s partnership with the African Development Bank Group through the Mobilizing Access to the Digital Economy (MADE) Alliance aims to extend digital access to critical services for 100 million individuals and businesses over the next decade. As part of this initiative, Mastercard has set a target to register 15 million users in Africa within five years.
The projected growth of Africa’s digital payments economy represents a major opportunity to reimagine financial access, fuel business expansion, and accelerate inclusive economic growth. With strategic partnerships and innovations tailored to local needs, Mastercard is helping to turn that projection into reality.
Mastercard has been a long-standing technology partner in Africa. What specific investments and innovations are being made to drive digital transformation?
Mastercard is driving digital transformation across Africa through scalable, locally relevant, and inclusive solutions. In Nigeria, our efforts are focused on innovations that lower the barriers to digital payment adoption, particularly for small businesses and underserved communities.
We are enabling small businesses to adopt digital payments through the launch of low-cost, secure and seamless contactless payment solutions. Products like Tap on Phone, QR Pay-by-Link and Payment Links allow SMEs to accept card payments using just a smartphone—removing the need for expensive infrastructure and expanding digital payment acceptance across informal sectors.
Partnerships are central to our strategy. In collaboration with Alerzo and the USAID-funded e-Trade Alliance, Mastercard is digitizing over 10,000 Nigerian MSMEs by equipping them with tools like Alerzoshop and Veedez for inventory management, payments and micro-lending, alongside digital and financial literacy training.
Innovation is at the heart of what we do. Our Start Path program supports fintech startups that are solving some of the most pressing challenges across the region. Nigerian fintechs like Hello Tractor, which connects smallholder farmers with tractor owners through a digital platform, are alumni of this program. Through Start Path, they’ve had access to Mastercard’s technology, mentorship and global network, accelerating their growth and enabling them to scale impactful solutions.
Another noteworthy example is NetPlus, a Nigerian e-commerce solutions provider that has collaborated with Mastercard to roll out secure online payment technologies. Their work removes the need for cash in e-commerce transactions, making digital payments more accessible and secure for Nigerian consumers.
To support these fintechs and partners with faster go-to-market capabilities, we introduced Product Express—a simplified onboarding framework that enables seamless integration of Mastercard products in just a few weeks. This agility is essential in Africa’s dynamic digital ecosystem, where speed and adaptability can make all the difference.
Collectively, these efforts support our broader global financial inclusion agenda. To date, Mastercard has connected over 870 million people to the digital economy—moving steadily toward our goal of 1 billion by 2025. We’ve also connected 48 million small businesses, nearing our target of 50 million by 2025. Notably, we’ve surpassed our commitment to reach 25 million women entrepreneurs, delivering solutions to help 37 million women grow and scale their businesses. Nigeria remains a priority market, and we’re committed to co-creating innovative, locally relevant solutions that enable individuals and businesses to thrive in a digital-first economy.
The Mobilizing Access to the Digital Economy (MADE) Alliance aims to impact 100 million individuals and businesses. Can you elaborate on the significance of this initiative?
The MADE Alliance, Mobilizing Access to the Digital Economy, is one of the most important initiatives we’ve launched at Mastercard, and its significance lies in its goal to bring practical, accessible digital solutions to the people who have long been excluded from formal systems. With a target to reach 100 million individuals and businesses across Africa in the next decade, MADE is focused on supporting the continent’s informal economy, particularly those who have been left out of mainstream financial services.
At the heart of this effort is the agricultural sector, with a particular focus on smallholder farmers. These farmers often face barriers such as limited access to financial services, high-quality seeds and essential agricultural inputs. Through Community Pass, a Mastercard-led platform, we are working to provide digital identities and access to essential services.
In phase one, we’re working with the African Development Bank to bring 3 million farmers in Kenya, Tanzania, and Nigeria into the digital economy with this solution, as part of a $300 million commitment to the Alliance. This initiative is a critical part of our broader strategy to drive digital inclusion, especially in sectors like agriculture, where the majority of transactions are still conducted in cash. By digitizing this sector, we can help farmers access better prices, reduce waste in the system and create greater efficiency across the entire supply chain.
The initiative also places significant importance on women’s inclusion. While women play a vital role in African agriculture, recent World Bank data shows they contribute around 40 per cent of the labor input in crop production on average. Despite their contribution, women often face greater barriers than men, including limited access to land, finance, training, and markets. Through Community Pass, we are addressing these challenges by providing women with access to crucial services, including financing and digital tools that enable them to improve their agricultural output and overall livelihoods.
At its core, MADE Alliance is about creating a more efficient, transparent and inclusive digital ecosystem for Africa’s rural communities. The success of this initiative depends on effective collaboration between the public and private sectors, and we are proud to be a part of this transformative effort to make the digital economy accessible to all.
SMEs form the backbone of Africa’s economy. How is Mastercard empowering small businesses with digital solutions that enhance financial inclusion and long-term resilience?
SMEs are the backbone of Africa’s economy, driving job creation and contributing significantly to GDP. In Nigeria alone, SMEs account for 96% of businesses, contribute 48% to the national GDP, and are responsible for 84% of employment. Despite their significance, many SMEs face challenges in accessing affordable financial tools and digital infrastructure, hindering their growth and integration into the digital economy.
Mastercard is committed to supporting SMEs by delivering innovative solutions that enable them to participate more effectively in the digital economy. Our focus is on lowering barriers and simplifying access to digital tools that drive scalability and resilience. One such innovation is Tap on Phone, which transforms any Android smartphone into a secure, contactless payment terminal. We also launched SME-in-a-Box solution in Nigeria, to enable small and micro merchants across the country in expanding their customer base via digital platforms and enable sustainable revenue growth.
In addition to technological solutions, Mastercard has entered into a Memorandum of Understanding (MoU) with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). This collaboration aims to accelerate the development of micro, small, and medium enterprises (MSMEs) in Nigeria by providing them with digital tools, capacity-building support, and access to financial services.
Through partnerships with organisations such as Omniretail, Duplo and Alerzo, we’re not only providing payment technology, but also offering financial literacy training and improving access to credit, helping businesses optimize operations and grow sustainably. Our platform, Product Express makes it easier for financial institutions and fintechs to launch tailored payment solutions quickly and cost-effectively, further supporting SME growth.
By investing in innovative technology and collaborating with strategic partners, Mastercard is helping SMEs across Africa overcome systemic challenges and integrate into the global digital economy, fostering inclusive growth and long-term economic sustainability.
Cross-border payments are critical for trade and economic growth in Africa. How is Mastercard simplifying cross-border transactions to support businesses and individuals?
Mastercard is simplifying cross-border payments across Africa through strategic partnerships and digital innovations that make it easier, faster and safer to send and receive money globally. Our solutions are designed to address the unique needs of businesses, individuals, and the continent’s large diaspora population.
In Nigeria, we partnered with Fidelity Bank to launch Fidelity Send, which enables near real-time fund transfers to over 60 countries—offering transparency, convenience and affordability for both businesses and individuals. Similarly, our collaboration with Access Bank powers Access Africa, a platform that facilitates seamless remittance flows to 150 countries, enhancing financial inclusion and enabling families to stay connected through secure, cross-border transactions.
We’re also advancing mobile-enabled remittance solutions. Through our collaboration with MTN Group Fintech, customers can link mobile wallets to Mastercard’s virtual payment solutions—offering a seamless and secure payment experience. This is especially impactful in rural and underserved areas where mobile penetration is high, but access to traditional financial services is limited.
With Airtel, we’ve enabled virtual payment cards linked to Airtel Money, empowering consumers in countries like Nigeria, Uganda, and Rwanda to engage in digital commerce—from online shopping to paying school fees and utility bills.
Through these partnerships and continued investment in digital innovation, Mastercard is helping to unlock new opportunities for trade, drive financial inclusion and support the growth of Africa’s digital economy.
Folasade Femi-Lawal Bio
Folasade Femi-Lawal is the Country Manager, West Africa at Mastercard. Based in Nigeria, Folasade is responsible for advancing the Mastercard brand presence in West Africa, overseeing performance and strategic direction, deploying innovative payment solutions, and partnering with local governments and market regulators to build a World Beyond Cash. Before joining Mastercard, Folasade held multiple roles in the finance and banking industry with her first role dating back to 1998, when she joined United Bank of Africa (UBA) as the Head of Loan Monitoring Unit — overseeing the bank’s loan portfolio and ensuring compliance with regulatory standards.
This position was then followed by her role as Head of Card & Messaging Business at FirstBank, where she managed eleven million cards and coordinated the Card Products Strategy in the Bank and its subsidiaries in the United Kingdom, Democratic Republic of Congo, Ghana, Senegal, Gambia, Sierra Leone, and Guinea.
Folasade also served as the Vice President of the Committee of E-Business Industry Heads (CeBIH), where she contributed to driving innovation and collaboration across Nigeria’s financial ecosystem.
She is a seasoned Digital Transformation Senior Executive with 25 years of experience across diverse industries such as Financial Services, Management Consulting, Telecommunications, and Business Advisory Services. Alongside her varied experience, she is passionate about women empowerment and financial inclusion, with affiliations to key organisations such as the Women in Management, Business and Public Service (WIMBIZ) and the Women Entrepreneurs (AWE) initiative, launched by the US Consulate General.
Folasade has been recognised for her leadership and achievements, receiving the Visionary Leader in Technology and Business Award in 2024, presented by The CIO and C-Suite Awards Africa, and being named among the Forty-Five Most Influential Women in Digital Transformation in 2024, awarded by CIO Africa Magazine.
She holds a B.Sc. in Accounting from Obafemi Awolowo University and an MBA in Information Management System from Texila American University, Guyana. She has also received an Honorary Doctoral Degree from Veridian Christian University, awarded in recognition of her impact in Business and Christian Leadership. In addition, she has received professional and executive education from Pan-African University, Harvard Business School, London Business School, and Gershom Lehman Consulting (USA).
Folasade is a fellow of the Institute of Chartered Accountants of Nigeria, the Chartered Institute of Taxation, and the Association of Enterprise Risk Managers. She is also a member of the Forbes Business Development Council and the Committee for Open Banking API Standard.
