Tanzania's N-Card: A Local Card for Local Payments, Showcasing how local cards can win anywhere in Africa.

From Tanzania, Rwanda to Nigeria, we’re seeing an exciting rise in local card solutions that are addressing challenges that Visa and Mastercard were not able to.

Introduction

In the digital age, card payments are often seen as the cornerstone of financial inclusion. However, in Africa, the adoption of traditional Visa and Mastercard schemes has faced significant barriers. Take Tanzania, for example: the country has issued 12 million cards, but only 2 million are active, with 96% of card transactions happening at ATMs, not at point-of-sale (POS) terminals. This highlights the limitations of global card networks in a market where mobile money reigns supreme.

Card Payments in Tanzania: A Missed Opportunity or a Sign of a Deeper Trend?

But there’s hope—and it’s homegrown. Verve’s success story in Nigeria is a powerful example of the potential for homegrown solutions to thrive alongside global giants like Visa and Mastercard. Beyond Verve, there are several niche card payment players in Nigeria, Rwanda, and Tanzania that are also excelling within their respective markets. These companies are carving out their own niches by addressing specific needs and offering tailored solutions that resonate with local consumers.

Enter the N-Card, a locally issued, non-scheme card that’s flipping the script on what’s possible in Africa’s card payment landscape. By integrating seamlessly with mobile money platforms and focusing on high-impact, everyday use cases like public transport, sports events, and ferries, the N-Card is proving that the future of card payments in Africa doesn’t necessarily lie in global giants like Visa or Mastercard. Instead, it lies in innovative local solutions that cater directly to the specific needs of African consumers.

But Tanzania is not alone in this journey. Across the continent, we’re seeing an exciting rise in local card solutions that are addressing challenges with traditional card systems while enabling access to both local and global financial ecosystems. From Rwanda to Nigeria, these solutions are showing that local innovation can unlock untapped potential in the African market.

The African Payment Dilemma: Scheme Cards vs Local Solutions

While scheme cards (Visa and Mastercard) have long dominated the global payments scene, their adoption in Africa has faced several key obstacles:

1. Merchant Reluctance: Many merchants, particularly small and medium-sized enterprises (SMEs), hesitate to accept cards because:

   • The cost of POS terminals and transaction fees are too high, and that is according to a-lot of people and experts in the space.

   • There is a lack of clear incentives for merchants to switch from cash or mobile money, which are more widely accepted and often cheaper to use.

2. Transportation sector: The Card Payment Void: If you look at the London transport and how the cards are being used you be amazed, Despite the growing trend towards digital payments in Africa, card payments are almost non-existent in the transportation sector. In cities like Dar es Salaam, although platforms like Safiriapp and Otapp are digitizing ticketing, mobile money remains the dominant method of payment, with Visa and Mastercard virtually absent.

3. Fuel Stations: A Fuel Card Culture
   Large fuel station chains in Tanzania, like TOTAL, Lake Oil, and Oilcom, still do not accept cards, opting instead for cash or proprietary fuel cards. Stations like Oryx and Puma may accept cards, but they remain the exception, not the rule.

4. The Power of Mobile Money
   In a country where mobile money like M-Pesa is king, the global card networks struggle to gain traction. Tanzanians and other Africans are overwhelmingly using their mobile phones to make payments, and this isn’t likely to change anytime soon.

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N-Card: A Locally Tailored Solution That Works

Enter the N-Card, a locally issued card in Tanzania that has become a lifeline for consumers who want to bridge the gap between mobile money and card payments. What makes the N-Card work where Visa and Mastercard have struggled?

1. Integration with Mobile Money
   N-Card seamlessly connects with Tanzania’s popular mobile money platforms like M-Pesa and Tigo Pesa, making it easier than ever for users to load funds directly onto their cards from their mobile wallets. Whether you’re riding the Dar es Salaam BRT or attending a sports match, you can use your N-Card just like any other payment method, without needing cash.

2. Local Relevance with High-Impact Use Cases
   By focusing on use cases that are uniquely African, like public transport, sports events, and ferries, N-Card addresses specific needs in Tanzania’s urban and rural areas. It's tailored to how Tanzanians live and work, providing a convenient way to make daily payments in situations where global payment systems have failed to gain traction.

3. Affordable and Accessible
   Unlike global card networks that require expensive POS terminals and high transaction fees, N-Card’s low-cost model makes it more accessible to both merchants and consumers. Its integration with mobile money also ensures that it aligns with how Tanzanians prefer to pay, creating a frictionless experience.

Africa’s Local Card Revolution: Rwanda & Nigeria Leading the Way

While N-Card is taking Tanzania by storm, other African countries are also reimagining card payments through localized solutions. Let’s look at two standout examples:

Rwanda: Tap & Go – A Cashless Bus Payment System

In Rwanda, the Tap & Go card system is revolutionizing public transport. Through this contactless card platform, Rwandans can pay for bus rides without ever needing cash. It’s a simple, efficient, and secure solution that has become a cornerstone of the country’s cashless society initiative. The system is so successful that it is now being considered for export to other countries across Africa.

What sets Tap & Go apart is its alignment with Rwanda’s national vision to transition to a cashless economy. By focusing on public transport and small-ticket transactions, it addresses a massive pain point for consumers while making the payment process more inclusive and accessible.

Nigeria: Touch and Pay

In Nigeria, Touch and Pay (TAP) is another shining example of how local card solutions are changing the game. TAP offers contactless cards for use in transportation, toll payments, and even school fees. With millions of small transactions happening daily, TAP provides a low-cost way for consumers to pay for everyday essentials without relying on cash or mobile money.

The success of TAP lies in its ability to cater to high-volume, low-cost transactions in sectors that are traditionally cash-dependent, all while integrating with Nigeria’s mobile money ecosystem. This model not only makes transactions easier but also creates an inclusive environment for underserved populations.

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Onafriq acquired GTP: Connecting mobile money wallets and Global merchants

The acquisition of Global Technology Partners (GTP) by Onafriq is another powerful example of how local players are taking on global card schemes. GTP’s expertise in issuing prepaid cards and integrating them with mobile money platforms makes it an ideal partner for Onafriq, which is focused on bringing Africa into the global payments system.

With the ability to issue prepaid cards that are linked to mobile wallets, Onafriq is positioning itself to bridge the gap between local use cases and global e-commerce, providing African consumers with access to international online stores while still using local payment methods.

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The Future of Card Payments in Africa:

The success of N-Card, Tap & Go, Touch and Pay, and Onafriq-GTP shows us a critical truth: local solutions will play a pivotal role in Africa’s financial future. These solutions are tailored to the unique needs of African consumers, and they offer a way to overcome the barriers that global payment networks have yet to address:

• Seamless integration with mobile money, which is already the preferred payment method in much of Africa.

• Affordable infrastructure that doesn’t burden merchants with high fees.

• Targeted solutions that cater to sectors like transportation, fuel, and sports.

In the end, Africa doesn’t need to copy global models. The continent’s diverse and dynamic markets demand solutions that work for its unique needs. And with innovators like N-Card, Tap & Go, and Touch and Pay, the future of payments in Africa looks brighter than ever.

Conclusion: A New Era for African Payments

The rise of local card solutions across Africa shows that innovation rooted in local realities can reshape the future of payments. Whether it’s public transport in Rwanda, fuel payments in Tanzania, or small-ticket transactions in Nigeria, these solutions are proving that Africa doesn’t need to rely on global schemes to drive financial inclusion. Instead, it needs to embrace homegrown technologies that connect local needs with global opportunities. With N-Card leading the way, the future of payments in Africa is being written by Africans for Africans—and that’s a story worth celebrating.

Verve’s journey is a powerful testament to the success of homegrown solutions in Africa’s payments landscape. With over 70 million payment cards issued in Nigeria, Verve has solidified its position as a dominant force in the region ahead of global players. By strategically partnering with banks, fintechs, and public-sector entities, Verve has become the card of choice for millions, offering secure and accessible payment solutions in local currency, local preferences and being on the ground.

For niche players in Nigeria, Rwanda, Tanzania, and beyond, Verve’s success is a powerful inspiration. It proves that by understanding local needs, forming strategic partnerships, and offering innovative, cost-effective solutions, homegrown players can challenge global giants and reshape the payments ecosystem. Verve’s growth, backed by Interswitch’s resources and expertise, shows that Africa’s payment revolution is not only possible but already underway.