Mobile money and digital platforms are expanding across the region, but poor infrastructure, high transaction fees, and weak cross-border integration are blocking widespread adoption of electronic payments, a new report finds.

Small and medium-sized enterprises (SMEs) across francophone Africa are increasingly turning to electronic payments to power their businesses, according to a new survey by the International Trade Centre and the Permanent Conference of African and Francophone Consular Chambers. The findings, drawn from 5,453 firms across 18 countries, reveal a region in digital transition – where mobile money and e-commerce are reshaping how companies operate.

The survey, conducted between April and July 2025, examined how SMEs manage payments, the barriers they face in adopting electronic methods, and the operational challenges involved. The survey findings are presented in SME Competitiveness in Francophone Africa 2025: Unlocking the potential of electronic payments. 

The survey data show that 46% of firms sell goods or services online, with micro and small enterprises – those with fewer than 10 employees – leading the charge. Women- and youth-led businesses are especially active in e-commerce, using digital platforms to overcome traditional market access limitations.

Mobile money dominates

About 83% of online sellers accept e-payments. Most – particularly small and women-led firms – favour mobile money over bank transfers. Offline businesses are also catching up: 56% accept digital payments, often through hybrid models such as WhatsApp-based sales.

Bank transfers remain the preferred method for larger firms and exporters, which require more secure and scalable solutions for cross-border transactions. However, the lack of interoperability between monetary zones in francophone Africa continues to hinder seamless international payments.

Despite the momentum, many challenges remain. Almost a third of firms not accepting e-payments cite a lack of necessary devices, such as smartphones or point-of-sale terminals. High transaction fees are another major hurdle, disproportionately affecting SMEs. Exporters face additional complications, including payment delays, steep cross-border fees, and currency conversion issues.

Trust is also a growing concern. Nearly 20% of exporters flagged fraud and cybersecurity risks as key challenges when accepting e-payments from abroad. With limited resources to invest in cybersecurity, SMEs remain vulnerable to financial loss and cyber threats.

How to accelerate e-payment adoption?

The report calls on policymakers to remove structural barriers to widespread e-payment adoption, promote cross-border compatibility, and build trust – starting with expanding access to affordable digital tools. 

‘Targeted SME-focused interventions that offer subsidized e-payment hardware bundles to businesses can be key in upgrading their payment processes and moving beyond mobile money,’ the paper says. Smart Africa’s partnership with KaiOS Technologies, for example, offers subsidized smart devices to informal merchants. 

The report urges banks and regulators to collaborate on lowering transaction costs by developing SME-friendly pricing structures. Cross-border interoperability must also be improved. Platforms such as PI-SPI, operated by the Central Bank of West African States, offer promising models for instant payments across financial institutions, the report says.

Finally, regulation and public sector leadership can build trust. The paper encourages governments to lead by example, as Mali did with its Trésor Pay platform for public service payments via mobile money.

The survey underscores a critical juncture for francophone Africa. SMEs are eager to embrace e-payments, but inclusive growth depends on tackling structural and operational barriers. With targeted policy reforms and regional cooperation, electronic payments can become a cornerstone of economic resilience and opportunity across the continent.