Driving Digital Transformation: Overview on Zambia’s National Payment Systems

Author: Aston Njovu, Products Manager – ZeePay

The year 2024 marked a period of robust growth and transformation for Zambia’s National Payment Systems (NPS). Driven by policy reforms, technological advancements, and evolving consumer preferences, the NPS achieved significant milestones in transaction volumes, system stability, and financial inclusion.

Mobile Money and Financial Inclusion keeps surging at an interesting pace. This is mainly monitored through metrices such as the rise in digital assets and patronage. Notably, the proportion of active wallets increased to 84.2% (2023: 74.8%), indicating deeper engagement with mobile money services amid ongoing digital transformation.

The NPS recorded a notable surge in both value and volume of processed transactions in 2024. This growth is a testament to increasing digital adoption and the effectiveness of recent reforms in the ecosystem.

The Zambia Interbank Payment and Settlement System (ZIPSS) which is the country’s Large Value Payment System, experienced a remarkable 73.5% growth in processed transactions. The expansion was primarily fueled by interbank and government payments, reflecting increased trust and usage of the digital infrastructure.

Retail payment channels especially mobile payments and point-of-sale (POS) transactions continued to expand, underscoring a broader transition to digital payment methods among consumers.

The net value of international remittances more than doubled further underscoring the sector’s dynamism. Main Source Countries: The USA and UK accounted for 57% of inbound flows. Main Recipient Countries: India and Tanzania received 35% of outbound remittances.

The increase to USD 300 million in value has been driven by an increase in terminating partners, expanded collaboration with Mobile Network Operators, new corridor availability as well as agility and innovation disruption from key market leaders.

The regulator significantly the Bank of Zambia, plays a pivotal role as the bank needs to set policies and frame works strong enough to protect the consumer but agile enough to allow for innovation.

To ensure the resilience and efficiency of the NPS, the Bank implemented several key policy measures in 2024. These measures align with the Bank’s 2024–2027 Strategic Plan, focusing on price stability, financial inclusion, and organizational resilience.

The performance of Zambia’s National Payment Systems in 2024 reflects a significant milestone in the country’s journey toward a more inclusive, efficient, and secure digital economy. Continued efforts to expand digital payment channels, protect consumer rights, and embrace innovative financial technologies position Zambia to capitalize on emerging opportunities in the regional and global financial landscape.