Digital payments in Africa are expected to hit $1.5 trillion by the end of the decade, a new report by Mastercard (NASDAQ: MA) says.

While Africa remains the most cash-reliant continent globally, its digital payments sector has been growing rapidly over the past decade.

Digital payments in Africa are expected to hit $1.5 trillion by the end of the decade, a new report by Mastercard (NASDAQ:MA) says.

While Africa remains the most cash-reliant continent globally, its digital payments sector has been growing rapidly over the past 10 years. According to the study, which was conducted in partnership with Johannesburg-based Genesis Analytics, the region is slowly phasing out cash for the convenience and security of digital payments.

The report, titled “Unlocking Priceless Possibilities in the Digital Economy for a Prosperous Africa,” predicts that digital payments will contribute $1.4 trillion to the continent’s GDP by 2030.

Mastercard attributed the growth in digital payments to two main drivers: financial inclusion and Internet penetration. With the latter, Africa has recorded massive growth in the past 10 years, fostered by cheaper Asian smartphones and lower data charges. Experts project a 20% compound annual increase in Internet penetration for the next few years.

Financial inclusion has also greatly improved, boosted by digital financial services, mobile money adoption, and concerted efforts by African governments to make banking services easier to access. The region is projected to record a 6% CAGR in financial inclusion.

“Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead,” said Dimitrios Dosis, president for Middle East and North Africa (MENA) at Mastercard.

The report is the latest to illustrate the growth of digital payments in the region. An earlier report by Mastercard revealed that small and medium enterprises (SMEs) are leading the charge in embracing these new payment methods.

In Nigeria, 99% of SMEs accept digital payments, with Kenya and Egypt at 91% and 80%, respectively. This growth is reflected in the startup sector, where most of the fastest-growing and best-funded startups are focused on digital financial services.

Last year, fintech startups raised over $1 billion in venture capital (VC) funding, which is about half the total amount raised on the continent.

The region is also marked by stark contrasts. In some countries like Kenya, digital finance has pushed financial inclusion to 85%, which is among the highest in the region, with mobile payment network M-Pesa accounting for the bulk of the clientele.

71% of Kenyans face digital fraud

With the rise in digital finance has come digital fraud, and according to a new report by Visa (NYSE:V), over 70% of Kenyans have encountered online scams, the highest of all surveyed nations.

Ivory Coast with 66%, Nigeria with 65%, and Oman with 59%, were among the other scam hotspots, the Stay Secure report found.

The report revealed that most consumers are still susceptible to common tricks used by scammers, including clicking on suspicious links and responding to text messages. In fact, 95% of respondents said they believe their friends or family would fall for these scams.

The older generation (mostly above 45 years old) is widely believed to be more susceptible to scammers. However, Visa found that nine in 10 Gen Zs are likely to click on a scammer’s link, much higher than millennials, Gen X, and boomers, all tied at 85%.

Despite the rise in digital fraud, most respondents said they fully trust digital payments. Seventy-five percent of those who had previously been scammed online had the same level of trust in digital payments as those who had never fallen for the schemes.

“The vast majority of adults (76%) mostly or completely trust digital payments for making transactions, so there is a significant opportunity to deepen that trust and bridge the gap for those who remain skeptical,” Visa noted.

Most of the respondents expected to continue using digital payments over the next 12 months despite the scams. Kenya had the highest share of respondents who planned to use their digital payments at 90%, followed by Egypt, Oman, and the United Arab Emirates, respectively.

Visa urged all fintech platforms to focus on consumer education as it’s “our best defense against fraud, and industry collaboration makes this possible. As scams grow more sophisticated, the battle for security never stops.”

output: Digital payments in Africa are expected to hit $1.5 trillion by the end of the decade, a new report by Mastercard (NASDAQ:MA) says.

While Africa remains the most cash-reliant continent globally, its digital payments sector has been growing rapidly over the past 10 years. According to the study, which was conducted in partnership with Johannesburg-based Genesis Analytics, the region is slowly phasing out cash for the convenience and security of digital payments.

The report, titled “Unlocking Priceless Possibilities in the Digital Economy for a Prosperous Africa,” predicts that digital payments will contribute $1.4 trillion to the continent’s GDP by 2030.

Mastercard attributed the growth in digital