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How Embedded Payment Is Driving Africa’s Growing Gig Economy

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In 2023, the unemployment rate in Africa stood at 7.7 percent out of a total population of over 1.4 billion.

This means that 112 million Africans are either out of jobs, unemployed, or ineligible to work as far as traditional jobs are concerned.

This reality has contributed to the rise of the gig economy in Africa.

A Mastercard Foundation survey revealed that the gig economy in Africa is growing at an average rate of 20 percent per year and is expected to reach 80 million gig workers by 2030.

This rise has been aided by the COVID-19 pandemic, digital advancements in technology, deeper internet penetration and the rise of e-commerce spiking demand for freelancers in various fields like web development, graphic design, content creation and digital marketing.

According to Statista, the gig economy could yield transaction volumes of over USD455 billion this year alone.

Trends such as smartphone usage and increasing internet penetration across Africa have played a huge role in the rise of the gig economy, as well as technological advancements like big data, AI, Cloud and mobile technology.

However, a major factor that is bound to fuel the popularity of the gig economy across Africa in the last few years is the introduction of embedded payments.

SeerBit and Gig Economy
Gig economy and payment system

Benefits of embedded payments for gig workers

Gig workers expect faster payouts. With embedded finance, employers can manage their cash flow – while generating engagement, retention and revenue.

Embedded finance ensures that gig platforms can provide workers with:

  • Instant payouts:

For gig workers, cash flow is a serious concern. Workers want faster, more flexible payments. Instant payouts ensure workers are paid as soon as they complete a job.

  • Cash advances:

Getting access to needed funds can be difficult for gig workers, many of whom lack an established credit history.

Gig economy platforms have unique insights into workers’ cash flow and their ability to repay. This makes it relatively easy to offer transparent cash advances with lower risk.

SeerBit and Gig Economy
secured payment system
  • Financial security: 

Workers associate faster payouts with greater financial peace of mind. Platforms that offer embedded finance can provide more financial stability and help their workers feel more confident.

  • Payment flexibility:

Gig workers can choose how they want to be paid – whether it is per hour, per project or a fixed price for certain services they provide.

Impact of embedded payments on the future of the gig economy

The landscape of financial technology, or fintech, is undergoing a significant transformation with the rise of embedded finance.

People are leveraging more tech platforms and apps to accept and complete gigs and businesses are leveraging real-time payment technology to issue faster payments directly to workers.

Payment tech is transforming gig work by creating an experience that meets workers’ needs and expedites the work cycle. It has become invaluable in facilitating gig jobs and supporting the scale of the industry.

  • Building Gig Worker Loyalty

The gig economy is a highly transactional system. Workers accept a job, complete the job and are paid for the job. Employers must make the work cycle fast and seamless to complete the transaction.

According to a recent survey from PayQuicker and the Ultimate Gig Research Project, 60 percent of the gig workforce take jobs from multiple platforms, so completing a gig shift and receiving earnings seamlessly is critical to attracting workers back. Real-time payments improve the experience and ultimately create gig-worker loyalty.

SeerBit and Gig Economy
SeerBit and Gig Economy
  • Creating management efficiencies

As employers increase their utilization of gig talent, they also need to streamline the payment process and management of their influx of gig workers.

This may seem like a daunting task, but real-time payment technology can enable employers to optimize efficiencies while decreasing management and cost burdens.

  • Empowering flexible earning possibilities

More individuals might consider gig work to earn additional income if it was feasible to receive their earnings in the frequency, method and currency they prefer. Real-time payment technology empowers gig workers with access to their earnings on their terms.

This opens the possibilities for even more individuals to take on gig work and benefit from their earning potential.

Conclusion

The gig economy is on a rapid rise across Africa. With millions of people joining in annually, the gig economy is set to overtake the traditional workforce. This means that the expectation for innovative and real-time payment options will rise across industries and businesses patronizing gig workers, with embedded payment systems becoming a necessity.

Hence, understanding the role of embedded payment in driving the gig economy and how you can leverage it for your business is crucial.

This SeerBit whitepaper explores how embedded payments can further grow Africa’s gig economy by facilitating easy payments for gig workers through digital platforms.

Click HERE to download.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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E-Financial

African Union Launches Credit Rating Agency to Promote Regional Economic Integration

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The African Union has taken a significant step towards promoting economic resilience in Africa with the launch of the African Credit Rating Agency (AfCRA).

The new agency aims to provide a fair, transparent, and unbiased credit rating system, addressing the biases of global rating firms that have reportedly cost Africa over $75 billion in investment opportunities.

According to Kenya’s President, William Ruto, who unveiled the agency at an AU event in Addis Ababa, Ethiopia on Friday, “Global credit rating agencies have not only dealt us a bad hand, they have also deliberately failed Africa.”

Ruto criticized the flawed models, outdated assumptions, and systemic bias used by global rating agencies, which paint an unfair picture of African economies and lead to distorted ratings, exaggerated risks, and unjustifiably high borrowing costs.

The launch of AfCRA is a response to the long-standing grievances of African countries regarding their treatment by international credit rating firms.

The agency aims to provide fair, transparent, and development-focused credit ratings that reflect the realities and potential of African economies.

Improving Africa’s rating by one notch could unlock $15.5 billion in additional funding for the continent, according to Ruto.

The idea of creating an African credit rating agency has been in the pipeline for years, with the AU officially announcing its plans to move forward with the project in September 2023.

The push for an African credit rating agency gained momentum in 2022 when Senegal’s former president Macky Sall called for a new system to “end the injustices” faced by African countries.

The African Credit Rating Agency is part of Africa’s continuous march towards economic resilience, which also includes the recent establishment of the African Energy Bank, headquartered in Nigeria.

The bank aims to provide support to unleash Africa’s energy potential and bring an end to energy poverty on the continent.

 


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Nigeria Worst Hit by Crypto Currency Fraud

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Fraud in the crypto industry in African continent has soared by 48 percent over the past year and Nigeria is worst hit according to report by CAJ News.

Nigeria Worst Hit by Crypto Currency Fraud

This is according to the Sumsub State of the Crypto Industry 2025 report, which indicates Nigeria recorded the highest rate of fraud across the sector, at 8,3 percent.

Thus, this percentage of verification attempts were flagged as fraudulent.

Uganda, Kenya and Tanzania all have fraud rates of 4,8 percent, with Cameroon (4,5 percent), Ethiopia (3,7 percent), Ghana (3,5 percent), Algeria (2,6 percent), Benin (2,6 percent) and Morocco (2,1 percent) recording significant rates.

The most popular fraud types are document forgery (affecting 31 percent of surveyed companies), phishing (20 percent) and money mulling (15 percent), followed by account takeover (14 percent) and forced verification (12percent).

Simsub, the cyber crime expert, believes this surge highlights the need for companies to adopt artificial intelligence (AI)-powered detection, biometrics and continuous monitoring to enhance security.

 

The report states that innovations like biometric checks, AI-backed automation and document-free verification have boosted crypto platform users’ on-boarding success rates to 93,39 percent and reduced verification time by 46 percent, overall improving customer on-boarding while reducing drop-off cases.

Hannes Bezuidenhout, Vice President of Business Development (Africa) at Sumsub, said Africa’s growing adoption of crypto provided its own challenges, but the company foresaw increasing demand and growing user expectations across the continent.

“So it’s crucial for VASPs operating in the region to implement secure verification systems and stay vigilant to fraud, while keeping an eye on evolving and new regulations concerning the crypto sector to avoid fines.”

VASP is an acronym for virtual asset service provider.

 

 


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Banking Consolidation Less Likely as Nigerian Banks Meet Capital Requirements – Fitch

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Fitch Ratings has said that Nigerian banks are making significant progress in raising core capital to meet new paid-in capital requirements. The rating agency noted that the banks are generally on track to meet the end-of-first quarter (Q1) 2026 deadline.

This is supporting a recovery in capitalisation from the impact of naira devaluation, providing fuel for business growth. It also reduces the likelihood of significant banking sector consolidation.

In March 2024, the Central Bank of Nigeria announced a significant increase in paid-in capital requirements (share capital plus share premium) for commercial, merchant and non-interest banks.

Banks have three ways to comply – through equity injections, M&A and downgrading their licence authorisation.

Fitch-rated banks have made notable progress towards compliance. Almost all have raised capital or formally launched the process to do so.

The two largest banks, Access Holdings and Zenith Bank, are the first to secure enough fresh capital to meet the N500 billion requirement for an international licence. First HoldCo, United Bank for Africa and Guaranty Trust Holding Company are taking a phased approach.

They have recently raised capital and have shareholder approval to begin raising more to meet the N500 billion requirement. First HoldCo’s and United Bank for Africa’s recent rights issues are awaiting final regulatory approval.

Fidelity Bank and FCMB Group have completed initial capital raisings but will need to raise more to maintain their international licences. As second-tier banks, they must raise significantly more capital relative to their balance sheets than larger banks.

They have extraordinary general meeting approval for this, although they could consider downgrading to a national licence as they each have just one foreign subsidiary.

Ecobank Nigeria Limited (ENG) and Jaiz Bank needed only small capital injections to meet their requirements and have already achieved compliance. We estimate that ENG is still in breach of its total capital adequacy ratio (CAR) requirement of 10 percent but it has further capital-raising plans to restore compliance. Stanbic IBTC Holdings has launched a rights issue to raise capital to maintain its national licence.

Strong investor appetite has ensured that the vast majority of capital raisings so far have been successful, and most first- and second-tier banks should be able to meet their new capital requirements through capital raisings alone. Therefore, we believe the likelihood of banking sector consolidation among first- and second-tier banks has decreased.

Union Bank of Nigeria (UBN), which is also in breach of its 10 percent CAR requirement, and third-tier banks have generally been slower to raise capital. Wema Bank has shareholder approval to raise enough capital to retain its national licence and plans to launch the process in April.

Coronation Merchant Bank recently received board approval. It is not clear whether UBN and unrated third-tier banks have received the necessary approvals. M&A activity and licence downgrades remain more likely among third-tier banks.

The capital raisings are contributing to a recovery in capitalisation from the impact of naira devaluation, which put pressure on capital ratios and increased US dollar credit concentration risks. Strengthened buffers over minimum CAR requirements will mitigate risks from a challenging operating environment, including regulatory intervention and further naira volatility, while providing room for business growth.

The capital raisings are unlikely to lead to banks with Long-Term Issuer Default Ratings (IDRs) of ‘B-’ being upgraded given the constraint of Nigeria’s ‘B-’/Positive Long-Term IDR.

However, they could contribute to Outlook revisions to Positive for some banks, and, providing CAR compliance is restored, to upgrades for UBN and ENG (both rated ‘CCC’). Capital raisings are more likely to affect National Long-Term Ratings, which measure the relative creditworthiness of Nigerian issuers.

 


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