Mobile money in Africa 2026 & Payroll: What to Expect
Sports. A young, fast-growing population. Mobile money.
These are among the areas where Africa consistently leads the world.
It's no coincidence that the continent has become a pioneer in this space. Rather, it's a story of how lagging behind in traditional banking infrastructure has propelled Africa to the forefront of financial technology, outpacing even some more developed countries.
In this article, we explore the mobile money landscape and its impact on payroll in Africa.
The mobile money landscape in Africa
Across the continent, the mobile money payments market is led by giants like:
- MTN Mobile Money (MoMo), which operates in 14 countries, including Benin, Cameroon, Congo, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Nigeria, Rwanda, South Africa, Eswatini, Uganda, and Zambia.
- African-owned M-Pesa, which has been in operation since 2007, serving 8 African countries, including Kenya, Tanzania, the Democratic Republic of the Congo (DRC), Mozambique, Lesotho, Ghana, Egypt, and Ethiopia.
- Internationally owned telecom giants such as Orange Money and Airtel Money, which also operate across multiple African regions.
The numbers reflect just how widespread mobile money adoption has become. In Kenya, where M-Pesa originated, over 50% of the country's GDP is transacted through the platform, which operates entirely through SMS and the official smartphone app.
The way these platforms operate is also innovative, differing significantly from how mobile payments typically work in Western countries. Because around 40% of adults in Africa remain unbanked, largely owing to a lack of banking infrastructure, platforms like M-Pesa had to find a workaround. They allow users to store and transfer money via mobile phones without needing a bank account. This boosts financial inclusion while reducing cash dependency and associated risks like theft.
And the sector shows no signs of slowing down. With the widespread use of AI, other platforms like Xara have emerged, allowing users to make payments simply by sending a WhatsApp message. In practice, mobile money payments have become commonplace across Africa, with many countries developing their own local applications and systems that build on the platforms run by these major players.
Official uses of mobile money payments
Businesses
Interestingly, the use of mobile money payments has transcended individual use. Payment gateways and B2B aggregators for merchants are also flourishing, allowing businesses to accept mobile money payments from multiple countries or networks, consolidating fragmented telco systems into a single API. They include applications such as:
- Flutterwave, a massive pan-African payment platform that processes multiple payment methods, including mobile money and cards, across more than 30 African markets, among them Nigeria, Kenya, Ghana, South Africa, Uganda, Tanzania, and Egypt.
- Paystack, a highly reliable payment gateway, owned by Stripe, that is widely used by online businesses in Nigeria, South Africa, Ghana, Kenya, Côte d'Ivoire, Egypt, and Rwanda to accept both mobile money and cards.
- Onafriq, formerly MFS Africa, the continent's largest digital payments network, serving over 40 African countries, including the Democratic Republic of Congo, Kenya, Uganda, Nigeria, Ghana, Côte d'Ivoire, Tanzania, South Africa, and Mauritius.
Governments
Perhaps the most exceptional application of this technology is in government use. Several African nations, most notably Ghana and Kenya, process both pension contributions and benefit payouts directly through mobile money platforms.
- Ghana: the Social Security and National Insurance Trust (SSNIT) and private retirement trustees, such as United Pension Trustees' MyOwn Pension, allow users to receive payouts and make contributions using major mobile money services like MTN MoMo.
- Kenya: known for its globally recognised M-Pesa ecosystem, the National Social Security Fund (NSSF) introduced the Haba Haba informal sector pension plan, which relies heavily on mobile-based micro-pension contributions.
- Uganda: the National Social Security Fund (NSSF) has also enabled contributions and payouts through mobile wallets, including via MTN Mobile Money.
- Zimbabwe: the National Social Security Authority (NSSA) has similarly enabled mobile wallet pension payouts.
What does this mean for payroll in Africa?
Despite the huge leaps made in mobile money infrastructure and adoption, salary payments across Africa are still rarely made this way.
Why? Simply because too many administrative and security hurdles remain, particularly at scale. Transaction limits, costly bulk-transfer fees, compliance and tax reporting hurdles, and the lack of automated, robust digital records for auditing all make it much more difficult for payroll providers in Africa to fully embrace this technology.
Besides, payment errors can be harder to correct with mobile money payments. While mobile money providers, such as Paga, M-Pesa, or Orange Money, do offer bulk payment features, errors in recipient numbers are common and harder to reverse than standard bank transfers.
Currently, bank transfers or payments in cash remain the more popular, safer, and more easily auditable options for payroll across Africa.
But the future is likely to surprise us. Given the pace at which mobile money technology is evolving, it is likely that providers will find ways to overcome these hurdles, paving the way for salary payments that arrive with nothing more than the ding of a smartphone notification.
Get in touch with an award-winning African payroll provider
Managing payroll across multiple African markets means staying ahead of shifting payment infrastructure, from mobile money to traditional banking rails.
Africa HR Solutions helps businesses through compliant, reliable payroll and EOR services across 46+ African countries, so you can focus on growing your workforce rather than untangling local payment systems.
To find out how we can support your payroll strategy across Africa, get in touch with one of our consultants today.
Frequently Asked Questions
Can employers pay salaries through mobile money in Africa?
In theory, yes, but in practice it remains rare. Transaction limits, bulk-transfer fees, and the difficulty of maintaining auditable records mean most employers and payroll providers still rely on bank transfers or cash for salary payments.
Which African countries have the most developed mobile money ecosystems?
Kenya, Ghana, Uganda, and Tanzania are among the most advanced markets, largely thanks to platforms like M-Pesa and MTN Mobile Money, alongside strong government adoption for pension contributions and payouts.
Is mobile money a secure way to handle business payments?
Mobile money platforms are generally secure for individual and small-scale transactions, but bulk payments carry more risk. Errors in recipient numbers are common and harder to reverse than standard bank transfers, which is one reason payroll providers remain cautious.
Do African governments use mobile money for pensions?
Yes. Ghana’s SSNIT, Kenya’s NSSF, and similar bodies elsewhere increasingly use mobile money platforms to collect contributions and disburse pension payouts, particularly for informal sector workers who may not have traditional bank accounts.
Will mobile money eventually replace bank transfers for payroll in Africa?
It’s possible, but not imminent. As providers address current limitations around transaction limits, compliance, and auditability, mobile money could become a more viable payroll channel over the coming years, though bank transfers are likely to remain dominant in the near term.
