Mastercard deepens digital payments push as East Africa's commerce goes digital

 

Following Mastercard’s announcement that it expanded its acceptance network across Africa by 45 per cent in 2025, Shehryar Ali, Senior Vice President and Country Manager for East Africa and the Indian Ocean Islands, spoke about what this growth means for the region and how digital payments are reshaping commerce.

Mastercard grew its acceptance network across Africa by 45 per cent in 2025. What drove this growth in East Africa?

The expansion was driven largely by local partnerships and solutions tailored to the realities of small merchants. In Kenya alone, over 7.4 million SMEs contribute roughly 40% of GDP and employ nearly 14.9 million people. Mastercard has been working with banks, including KCB, I&M Bank and NMB, to empower thousands of SMEs to accept digital payments. Low-cost technologies such as Tap-on-Phone and QR-based payments have lowered the entry barrier significantly, enabling micro and small merchants to begin accepting digital payments without investing in expensive hardware.

Mastercard has invested heavily in technologies such as tokenisation and virtual cards. How do these strengthen trust in digital payments?

Trust is foundational to scale. Tokenisation replaces sensitive card data with secure digital identifiers, protecting every transaction from the point of initiation. Digital cards and contactless technologies enable consumers to pay via phones, wearables and online platforms with high levels of security built in. Mastercard is rolling out these capabilities across East Africa in partnership with DTB and Premier Bank in Kenya and Somalia, and NMB Bank in Tanzania. As digital wallets are projected to account for more than half of global e-commerce payments by 2027, building a safer, interoperable payments ecosystem now is what enables sustainable growth later.

With Africa’s digital payments opportunity expected to reach $1.5 trillion by 2030, where do you see the biggest growth areas?

The next phase of growth will come from digitising informal commerce, expanding cross-border payments and embedding financial services into everyday platforms. Mobile money has already transformed how East African economies operate. Mastercard’s collaboration with Safaricom has enabled more than 636,000 merchants using Mpesa to accept digital payments globally. Cross-border remittances and trade will also play a key role, supported by solutions such as Mastercard Move, which connects more than 17 billion endpoints across over 200 countries and territories.

SMEs are at the centre of Mastercard’s strategy. How are you helping them translate digital adoption into long-term growth?

Beyond enabling payment acceptance, Mastercard is helping SMEs manage cash flow, access credit, and improve operational efficiency. Globally, the company has connected more than 65 million small businesses to the digital economy. In Kenya, where the SME Confidence Index shows 91% digital payments adoption, the focus has shifted from depth to breadth, equipping businesses with cybersecurity tools, financial insights and access to credit.

Looking ahead, what will define success for Mastercard in East Africa?

Success is measured by sustained, inclusive growth. That means more merchants accepting digital payments, more consumers with secure digital identities and more SMEs accessing finance and markets through digital platforms. As technologies such as artificial intelligence begin to reshape payments, Mastercard aims to ensure that innovation continues to drive inclusive and secure growth across East Africa’s digital economy.

The writer is the senior vice president and country manager for East Africa and the Indian Ocean Islands