**Challenges and opportunities of digital payments for African businesses**

[\\ Back to Kora Blog](https://www.korahq.com/fr/blog) In Industry Insights # Challenges and opportunities of digital payments for African businesses May 22, 2026 May 18, 2026  Kora Press Share Article [](https://www.facebook.com/sharer.php?u=https://www.korahq.com/post/challenges-and-opportunities-of-digital-payments-for-african-businesses/)[](https://www.linkedin.com/shareArticle?url=https://www.korahq.com/post/challenges-and-opportunities-of-digital-payments-for-african-businesses&title=Challenges%20and%20opportunities%20of%20digital%20payments%20for%20African%20businesses)[](https://twitter.com/share?text=Challenges%20and%20opportunities%20of%20digital%20payments%20for%20African%20businesses&url=https://www.korahq.com/post/challenges-and-opportunities-of-digital-payments-for-african-businesses/) # Table of contents - [High transaction fees](https://www.korahq.com/fr/blog/challenges-and-opportunities-of-digital-payments-for-african-businesses#toc-high-transaction-fees) - [To reduce heavy transaction fees:](https://www.korahq.com/fr/blog/challenges-and-opportunities-of-digital-payments-for-african-businesses#toc-to-reduce-heavy-transaction-fees:) - [Delay in processing the transaction](https://www.korahq.com/fr/blog/challenges-and-opportunities-of-digital-payments-for-african-businesses#toc-delay-in-processing-the-transaction) - [Lack of awareness and trust](https://www.korahq.com/fr/blog/challenges-and-opportunities-of-digital-payments-for-african-businesses#toc-lack-of-awareness-and-trust) - [Restrictive government policies and regulations](https://www.korahq.com/fr/blog/challenges-and-opportunities-of-digital-payments-for-african-businesses#toc-restrictive-government-policies-and-regulations) - [Limited internet and power connectivity](https://www.korahq.com/fr/blog/challenges-and-opportunities-of-digital-payments-for-african-businesses#toc-limited-internet-and-power-connectivity) - [In Conclusion](https://www.korahq.com/fr/blog/challenges-and-opportunities-of-digital-payments-for-african-businesses#toc-in-conclusion) # Editor's note: ‍ Digital payments have grown immensely over the past few years, especially during the pandemic lockdown. Many businesses moved their transactions online. ‍ In Nigeria, for example, digital transactions doubled to about 800 million in 2020, according to the Central Bank of Nigeria. With this evolution, transactions became faster and more efficient for African businesses. ‍ The best part? Businesses aren’t restricted to just customers in their region. They [reach global markets](https://www.korahq.com/blog/expansion-strategies-for-african-businesses), which in turn boosts their returns, leading to a more connected and competitive economy. ‍ However, challenges still abound for many African businesses. Some struggle with high transaction fees, exchange rate fluctuations, concerns about fraud and cybersecurity, and many more. ‍ But these **challenges are only pathways for growth**. What matters as a business is that you’re willing to open your doors and adapt. ‍ This guide explains not just the barriers but also how to overcome them and scale your business. ‍ ## **High transaction fees** This is a common challenge. For every transaction made, businesses pay fees to payment gateways, banks, or mobile money providers. Over time, these charges add up and can reduce overall earnings, especially for small businesses. ‍ Cross-border payments are even more challenging because exchange rates are always fluctuating. Also, payments may pass through multiple banks or processors, and each intermediary can charge its own fees. ‍ All these make international transactions more expensive. ‍ ## **To reduce heavy transaction fees:** ### **1\. Partner with an all-in-one payment platform** This means accepting, managing, and sending payments from a single platform. Instead of using different tools for different payment tasks, everything is handled in one place. ‍ **Kora** is a good example. The platform allows [businesses to accept payments in different currencies](https://www.korahq.com/blog/6-key-features-you-need-to-know-on-kora) from cards, bank transfers, virtual bank accounts, EFTs, and mobile money through a single integration. This reduces the need to integrate multiple payment systems, which lowers technical, maintenance, and administrative costs. ‍ ### **2\. Implement automated systems** Kora allows businesses to withdraw funds or send payouts directly from their dashboard or through the Payout API.  Businesses also get complete payout histories, instant update notifications, and downloaded transaction reports. ‍ With such a streamlined process, operational costs and unnecessary transaction fees are avoided. It also helps reduce errors associated with manual payments. ‍ ## **Delay in processing the transaction** This happens mostly in [cross-border transactions](https://www.korahq.com/blog/cross-border-payments-for-african-businesses). Sometimes, it can take several days to complete. Why is this so? ‍ Many payment providers still rely on outdated banking systems that require multiple steps and verifications before funds reach you. The payment passes through intermediaries such as banks, payment processors, and foreign exchange providers. ‍ Imagine selling goods to a customer in another country and having to wait several days for payment to arrive. You’ll struggle to pay suppliers, restock products, or pay employees on time. That’s a lot of headaches to deal with. ‍ ### **Create and share payment links to fast-track transactions** With a payment link, you can **receive payments without coding or API integration**. The link is embedded on websites, apps, or social media pages. Once the customers open it on any device, they can complete their payment instantly. ‍ It also helps if the links serve different purposes like online sales, subscriptions, loan repayments, or donations. This fast-tracks the payment process. ‍ ### **How to create a payment link with Kora:** ‍ How to create a Kora Payment Link - YouTube Tap to unmute [How to create a Kora Payment Link](https://www.youtube.com/watch?v=syQ6dTtPoUo) [Kora](https://www.youtube.com/channel/UCp24kLWExAATS0NRQ6BV6Pg)  Kora628 subscribers ‍ ## **Lack of awareness and trust** Some people aren’t fully familiar with how digital payment systems work, hence they are hesitant to use them for important financial transactions. ‍ Additionally, many users worry about cyber threats like phishing, hacking, SIM swap fraud, and data breaches. Take, for example, the Nigeria Inter-Bank Settlement System (NIBSS), which [reported a total fraud loss](https://www.bfsiinsider.com/news/cyber-fraud-surge-undermines-nigerias-banking-sector/) of #17.67 billion. Half of these cases happened on digital payment platforms. Incidents like this discourage people, sending them right back to cash payments. ‍ Add this to digital payments involving multiple intermediaries with hidden fees, especially in cross-border transactions. The process becomes less transparent, and businesses struggle to track their payments or understand exact fees and processing times. ‍ ### **How to enhance transparency and strengthen security:** Businesses can take the following steps to make