Global payments giant Visa is doubling down on contactless payments across Africa as part of a broader strategy to expand its relevance in markets where traditional card usage is still limited. According to Godfrey Sullivan, Visa's SVP and Head of Products, Solutions, and Digital Partnerships for Central and Eastern Europe, Middle East, and Africa (CEMEA), contactless payment is expected to grow significantly in Africa, just as it has around the world.

Visa's bet on contactless payments signals a critical phase in its Africa playbook, where it is investing in newer, faster payment infrastructure to compete with homegrown systems. The company believes contactless payments – via cards, mobile phones, and biometrics – can offer a faster and more scalable solution in a region where cash remains dominant despite the rise of mobile money and real-time payment platforms.

In Morocco, Visa introduced contactless payments a couple of years ago, and now 41% of transactions conducted are contactless. Sullivan highlighted the security benefits of contactless payments, stating that it's a far more secure way for consumers and businesses to receive payments. Visa is prioritizing this model across its key African markets – Nigeria, South Africa, Kenya, Egypt, and Morocco – where adoption of digital payments has accelerated but remains fragmented across QR-based solutions, real-time payment systems, and local fintech platforms.

According to Sullivan, many local real-time platforms lack effective dispute resolution mechanisms, a weakness Visa sees as a strategic advantage. The company is working to embed its infrastructure more deeply into Africa's growing digital payment ecosystem. It is rolling out Visa Pay, a new real-time B2B payment platform in the Democratic Republic of Congo, and exploring the integration of stablecoins into its broader payment ecosystem.

Visa's approach in Africa hinges heavily on partnerships with local fintechs and banks to navigate the fragmented regulatory and infrastructure landscape. The firm now works with over 1,000 issuers across the continent. Sullivan emphasized the importance of partnerships, stating that "you need to have partners in each of these different countries… the fintech community, particularly, is central to our broader strategy."

In December 2024, Visa invested in Moniepoint, the Nigerian fintech unicorn known for its dominant agent banking infrastructure in Nigeria. Moniepoint processed over 5.2 billion transactions in 2024 and serves over 1.6 million businesses. Its deep roots in the informal economy give Visa a channel to scale contactless offerings in everyday commerce.

Visa is trying to strike a delicate balance: expand fast in Africa without alienating fintechs increasingly wary of high fees and dependence on foreign networks. Sullivan's message was clear: Visa doesn't just want to be a card company in Africa, it wants to be the rails, working with everyone from banks to fintechs to modernize how payments move.

Despite the rising cost of relying on international card networks like Visa and Mastercard after a naira devaluation, Nigerian fintechs are increasingly turning to local alternatives such as Verve and AfriGo. However, Visa says growth in the region hasn't slowed. The company plans to invest $1 billion in Africa by 2027, and says it's on track. With nine offices and over 500 employees, Sullivan said, "Africa is a super important region for us—and we're just getting started."

The strategic pivot is significant, as Visa aims to become an integral part of Africa's payment ecosystem. As the company continues to invest in contactless payments and partnerships with local fintechs and banks, it will be interesting to see how the landscape evolves in the coming years.