Marcello Schermer, who leads international expansion at South African payments startup Yoco, has called on African fintech companies to move beyond processing transactions and begin actively guiding customers toward smarter financial decisions in real time. Speaking in a recent interview, Schermer said the next phase of fintech growth on the continent will require companies to act as financial partners rather than just digital tools that record past spending.
Africa’s startup ecosystem has expanded rapidly in recent years, with more than 5,000 startups now operating across the continent. Despite a global slowdown in venture capital funding in 2024, fintech remained the dominant sector, attracting over 40 percent of total investment, estimated at 1.37 billion dollars. Industry data shows that fintech accounts for more than 30 percent of African startups, driven by a young, urbanising population and the steady growth of digital infrastructure.
Schermer noted that digital payments have transformed commerce across major markets such as Egypt, Kenya, Nigeria and South Africa, where mobile wallets and fintech platforms are steadily reshaping how individuals and businesses manage money. He said that while the first decade of fintech innovation focused on digitising payments and expanding access, the next stage should focus on proactive tools that help users make better financial decisions. Instead of simply showing past balances or expenses, fintech applications should provide timely prompts that encourage saving, investing or smarter spending.
He also pointed to ongoing modernisation of national payment systems by central banks across Africa as a development that could unlock further growth for the sector. While regulatory reforms often move slowly, Schermer said clearer licensing frameworks and updated infrastructure would ultimately create a more stable and inclusive environment for fintech operators. At the same time, he acknowledged that early stage funding remains a major hurdle for startups, particularly in markets where investors have safer and more predictable options.
Looking ahead, Schermer said competition in the payments space will continue to intensify, leading to better pricing and improved services for consumers and merchants. He advised founders to focus less on perfecting ideas and more on gaining traction and distribution in crowded markets, especially as artificial intelligence lowers the cost of building new products. However, he cautioned that fintech firms must balance innovation with responsibility, ensuring that the use of AI and automation in financial services is supported by proper oversight and designed with human needs at the centre.