The bustling marketplaces of Lagos, Nairobi, and Johannesburg are witnessing a quiet revolution. While cryptocurrency has captured global headlines for years, African merchants find themselves in a unique position—poised at the intersection of tremendous opportunity and significant obstacles when it comes to crypto adoption.
At a recent tech conference in Kigali, I spoke with Oluwaseun Adeyemi, who runs a mid-sized electronics shop in Lagos. “I understand that crypto could help me avoid currency depreciation and reach international suppliers more easily,” he told me, “but the practical reality is much more complicated.” His experience mirrors that of countless merchants across the continent.
Despite Africa’s reputation as fertile ground for cryptocurrency adoption—with Nigeria, Kenya, and South Africa leading regional crypto transaction volumes—merchants face several distinct challenges that hinder widespread implementation at the point of sale.
The infrastructure gap presents perhaps the most immediate hurdle. While mobile penetration across Africa has skyrocketed, reliable internet connectivity remains inconsistent. In rural areas particularly, where power outages occur frequently, the digital infrastructure necessary for cryptocurrency transactions simply doesn’t exist consistently enough to be dependable for daily commerce.
This reality creates a two-tiered system where urban merchants with reliable power and internet can consider crypto adoption, while their rural counterparts remain excluded from the possibility entirely.
Regulatory uncertainty compounds these challenges. The continent presents a patchwork of cryptocurrency policies—from Nigeria’s complicated relationship with crypto (including previous banking bans) to Kenya’s more progressive approach. This inconsistency leaves merchants hesitant to invest in systems they fear may be outlawed or severely restricted in the future.
According to a recent report from Chainalysis, despite these challenges, Sub-Saharan Africa accounts for approximately 6.5% of global cryptocurrency transaction volume. However, these numbers are heavily skewed toward individual users rather than merchant adoption.
The volatility of cryptocurrencies also presents unique challenges for African merchants operating on thin margins. When a currency can fluctuate by double-digit percentages within days, it creates untenable risks for small business owners. Femi Longe, co-founder of Co-Creation Hub in Lagos, explained to me that “merchants need stability and predictability in their payment systems—something that today’s cryptocurrency market doesn’t consistently provide.”
Stablecoins, cryptocurrencies pegged to stable assets like the US dollar, offer a potential solution. However, their adoption faces the same infrastructure and awareness barriers as other cryptocurrencies.
The technical knowledge gap further complicates matters. Many merchants across Africa have successfully adapted to mobile money solutions like M-Pesa, but cryptocurrency represents a significant leap in complexity. Setting up and maintaining crypto payment systems requires specialized knowledge that isn’t widely available.
“We’ve seen incredible adoption of mobile money because the systems were designed with local contexts in mind,” notes Aisha Adamu, a fintech researcher at the University of Nairobi. “Cryptocurrency interfaces haven’t yet achieved that level of localization and simplicity needed for widespread merchant adoption.”
Financial inclusion advocates point to cryptocurrency’s potential to serve the unbanked population across Africa—estimated at nearly 350 million adults. However, the reality is that current implementation barriers disproportionately impact the very merchants and consumers who could most benefit from the technology.
The expense of implementation itself creates another barrier. For merchants operating with minimal capital, investing in new technology systems represents a significant financial commitment. When combined with uncertain returns and regulatory risks, many choose to wait rather than become early adopters.
Some bright spots are emerging, however. Companies like Flutterwave and Chipper Cash have begun integrating cryptocurrency options alongside traditional payment methods, creating bridges between existing systems and blockchain technology. These hybrid approaches may offer a transitional path for merchant adoption.
Educational initiatives are also gaining traction across the continent. Organizations like the Blockchain Association of Kenya conduct regular workshops specifically designed for small business owners, explaining cryptocurrency concepts in accessible terms and providing hands-on training.
For African merchants to truly embrace cryptocurrency, several conditions must be met: regulatory clarity, improved infrastructure, simplified user interfaces, and enhanced education. The potential benefits—including reduced transaction fees, faster cross-border payments, and protection against local currency instability—remain compelling despite the current challenges.
As Emmanuel Babalola, Africa Director at Binance, told me at a recent fintech summit: “The question isn’t if African merchants will widely adopt cryptocurrency, but when and how. The economic case is clear—we’re now working on removing the practical barriers.”
The path forward likely involves tailored solutions that address Africa’s unique contexts rather than importing systems designed for different markets. This means developing crypto solutions that can work with intermittent connectivity, require minimal technical knowledge, and integrate seamlessly with existing payment methods.
For merchants like Oluwaseun in Lagos, cryptocurrency remains a future possibility rather than a current solution. But that future may be approaching faster than many anticipate, particularly if the current trajectory of innovation and adaptation continues.
