Africa’s $1.2 Trillion Digital Payments Boom Is a Fraud Magnet — Here's Why Smarter Verification Is Non-Negotiable

Africa’s digital payments market, now valued at over $1.2 trillion, has become one of the most exciting frontiers for financial innovation—and one of the most targeted by fraudsters.

As businesses rush to scale in this high-growth environment, many are making a critical misstep: choosing inferior identity verification solutions in the name of short-term savings.

The cost is attached to a vicious cycle of fraud losses, regulatory penalties, and operational inefficiencies that far outweigh the initial savings.

Nowhere is this trend more visible than in Africa’s fast-evolving financial hubs.

According to Sumsub’s 2024 Identity Fraud Report, fraudulent activity across the continent surged by 167% year-on-year, marking the fastest growth globally.

In Nigeria, the average fraud rate sits at a staggering 6%, while Kenya has seen its fraud rate climb from 2.75% to over 4% in just three years.

At the heart of the problem lies outdated processes: 19% of African businesses still rely on manual verification, a system prone to human error and increasingly outmatched by the sophistication of modern fraud tactics.

Also Read: Sumsub Inks Deal With Kenya’s Fintech Association for Digital Innovation

“Smart verification isn’t an expense, it’s a value multiplier,” says Hannes Bezuidenhout, VP of Sales for Africa at Sumsub. “Robust systems consistently pay for themselves through fraud prevention, operational efficiency, and improved customer lifetime value. In verification, quality isn’t a luxury—it’s basic economics. In an era where a single breach can cost millions, the question isn’t about affording better protection but the next attack.”

The AI Advantage

Sumsub is helping African enterprises flip the script by transforming compliance from a cost centre into a strategic advantage. Sumsub AI-powered identity verification platform offers:

• 90% fewer errors by eliminating manual review risks with advanced AI checks
• 14,000+ supported ID types, enabling seamless onboarding regardless of language or script
• 85% higher pass rates, unlocking greater customer acquisition through document-free verification
• Coverage in 220+ countries and territories, supporting pan-African and global expansion with ease

Real Results Across the Continent

African businesses leveraging Sumsub’s tech are seeing tangible outcomes:

• Conversion rates surpass 90% in high-growth markets like Namibia and Botswana, driving user acquisition and revenue
• 75% reduction in operational costs by replacing manual processes with scalable automation
• Dramatically shortened onboarding processes, all while maintaining regulatory-grade security

As digital finance becomes the backbone of Africa’s economic transformation, the stakes are higher than ever. Businesses must choose between being vulnerable or being prepared.