Beyond Payments: How African Fintechs Can Build Enduring Financial Ecosystems

African fintechs must shift from just banking the unbanked to building full financial ecosystems. Explore how founders can create sustainable, high-value fintech solutions that drive real economic growth.

TECHNOLOGY & INNOVATIONFEATURED ON HOMEPAGE

Tanya Kabuya

3/18/20254 min read

How African Fintechs Can Build Profitable Financial Ecosystems

For years, African fintechs have been obsessed with payments. Mobile money, digital wallets, and payment gateways have dominated the conversation. And while these innovations have made transactions seamless, they don’t solve the bigger problem: how do we create financial systems that drive real economic growth?

If you’re a fintech founder in Africa, you already know the challenges: high customer acquisition costs, razor-thin transaction margins, and the constant threat of regulation.

Payments alone won’t cut it. The real opportunity is in building financial ecosystems—integrated solutions that move beyond transactions to include credit, savings, wealth management, and business enablement.

1. Payments Are Just the Beginning—Not the End Game

Payments get people in the door, but they don’t keep them engaged. The biggest global fintech players have all realized this:

Apple Pay wasn’t enough—Apple introduced the Apple Card and BNPL (Buy Now, Pay Later) to lock in users.
PayPal went from payments to offering credit, savings, and even crypto trading.
Alipay in China combines payments with loans, insurance, and investment options to create a full financial ecosystem.

In Africa, mobile money services like M-Pesa, MoMo, and Airtel Money have made sending and receiving money easier. But outside of P2P transfers, most users cash out immediately—meaning fintechs lose long-term engagement. The next step is getting users to keep money in the ecosystem by offering products that meet their broader financial needs.

2. Monetization: Moving Beyond Transaction Fees

Relying on transaction fees is a losing game. Competition drives costs lower, regulators keep an eye on fees, and customers always look for cheaper options.

Instead of chasing volume, African fintechs should focus on monetizable, high-value services. What are people and businesses willing to pay for? Solutions that help them grow their money, manage risk, and access capital.

Alternative Monetization Strategies:

Embedded Finance: Think of how Safaricom’s Fuliza overdraft gives M-Pesa users instant credit. More fintechs should integrate financial tools directly into marketplaces, ride-hailing apps, and B2B supply chains.
Subscription-Based Financial Services: Banks charge monthly fees for premium accounts—why shouldn’t fintechs? Offer businesses automated invoicing, payroll, or accounting features at a fee.
Cross-Border Payment Solutions: Africa’s fragmented banking system makes cross-border trade difficult. Companies like Chipper Cash and Eversend are solving this problem, but more needs to be done to reduce remittance costs and improve intra-African trade.

3. Lending: The Sleeping Giant of African Fintech

If you’re a fintech founder in Africa, you already know the number one problem businesses and individuals face: lack of access to credit. Banks demand collateral, and traditional credit scoring models don’t work in cash-driven economies. But fintechs have the data to change this.

Opportunities in Digital Lending:

Alternative Credit Scoring: Fintechs can use mobile money transaction history, utility bill payments, and even e-commerce spending to assess creditworthiness. Companies like Branch, Tala, and FairMoney have already proven this works.
SME Financing: Africa’s small businesses don’t just need loans—they need working capital, invoice factoring, and trade credit solutions.
Revenue-Based Financing: Instead of asking for collateral, fintechs can lend based on a business’s projected cash flows. This model is already gaining traction in markets like South Africa and Nigeria.

4. Wealth Creation: Helping Users Grow Their Money

Most fintechs are focused on short-term transactions, but the real wealth is in long-term financial planning. African consumers and businesses need better ways to save, invest, and grow their wealth.

Fintechs Can Drive Wealth Creation Through:

Micro-Investment Platforms: Apps like Risevest, Bamboo, and Chaka are making it easier for Africans to invest in global stocks with as little as $10.
Fractional Ownership: Real estate and agriculture investments are traditionally expensive, but fintechs can offer fractional ownership models. Imagine an app where users can invest in farmland or rental properties with small contributions.
Automated Savings & Retirement Planning: More fintechs should integrate automated savings tools that encourage long-term financial discipline. Think Acorns or Stash, but for Africa.

5. Building the African Super App: The Future of Fintech

In Asia, companies like WeChat Pay and Alipay have evolved into super apps—ecosystems that combine payments, lending, investing, and e-commerce. Africa is ripe for this model.

How Fintechs Can Build an Ecosystem:

Leverage Data: Use AI and machine learning to offer personalized financial services.
Partnerships Matter: Work with telcos, banks, and e-commerce platforms to create end-to-end financial solutions.
Education & Trust: Many Africans are still wary of digital financial services. Fintechs need to invest in financial literacy campaigns to build long-term customer confidence.

6. The Bottom Line: Build for the Future, Not Just for Transactions

African fintechs have a massive opportunity to transform economies,not just by making payments easier, but by helping businesses and individuals build wealth. The winners in this space will be those who think beyond transactions and create solutions that drive real financial inclusion.

If you're a fintech founder, the question isn’t “How do I get more people to use my payment service?” It’s “How do I keep them in my ecosystem and help them grow their money?”

The future belongs to fintechs that understand this shift and build solutions that go beyond payments. Are you ready?

About The Contributor

Tanya Kabuya is a seasoned entrepreneur, business strategist, and persuasive copywriter with a track record of helping businesses scale profitably and sustainably.

As the CEO of a revenue enablement firm, she specializes in driving sustainable growth for tech-enabled businesses and startups.

She is also the Editor-in-Chief of Business Creed Magazine and the founder of the Afripulse MSMEs Network, a platform empowering African entrepreneurs and investors.

Passionate about economic development, Tanya is a strong advocate for leveraging fintech, automation, and innovative business models to transform Africa’s business landscape.