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 processing, system modernization, and regulatory oversight. Without wasting time, let’s dive into the excitement.
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.
- -In 2024 Mobile Subscribers rose slightly to 19,604,415 from 19,477,324 in 2023
- -There was a reduction in Registered Mobile Money Wallets to 14,650,368 from 17,290,646 in 2023, this was mainly due to the cleanup of dormant and irregular accounts as a fraud mitigation measure.
- -Active Mobile Money Wallets stood at 12,328,755 in 2024 indicating a reduction from the 2023 records due to the above motive.
Notably, the proportion of active wallets increased to 84.2% (2023: 74.8%), indicating deeper engagement with mobile money services amid ongoing digital transformation. This highlights wallets on the main players in the Zambian mobile money wallet including Airtel, MTN, Zeepay and ZAMTEL among others.
Transaction Growth and System Performance
Overall Transaction Trends
The NPS recorded a notable surge in both value and volume of processed transactions in 2024:
- -Transaction value grew by 54.3% to ZMW 5.4 trillion, up from ZMW 3.5 trillion in 2023.
- -Transaction volume increased by 9.4% to over 4.07 billion transactions, compared to 3.72 billion in the previous year.
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 a shift toward more efficient, electronic settlement channels.
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 Bank’s sustained awareness campaigns and stakeholder collaborations played a pivotal role in this positive trend. The mobile money payment distribution is spearheaded by a network north of 160 thousand mobile agents while Zambia boasts a total of 53,043 POS terminals deployed country wide. This has increased merchant payments at agent locations and business fronts.
Net Remittance Value
We wouldn’t perform justice to the ecosystem without highlighting the strides in the international remittance sphere. 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 (depending on whose reporting) 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 disruptions from fintech such as Zeepay which strives to create a financially borderless Africa.
The above strides in the ecosystem have been possible through collaboration of players and the adaptive regulators. The regulator significantly the Bank of Zambia, plays a pivotal role as the bank needs to set policies and frame works strong enough to ensure financial stability and safeguarding of customer funds while ensuring enough flexibility enabling innovative transformation from the sector players.
To ensure the resilience and efficiency of the NPS, the Bank implemented several key policy measures in 2024:
- Extended Operating Hours: ZIPSS and the Central Securities Depository (CSD) piloted extended hours (07:00–19:30), supporting the government’s 24/7 digital economy initiative.
- Cheque Phase-Out Roadmap: Following stakeholder consultations, a roadmap for the gradual elimination of cheques was issued.
- Consumer Protection: New directives were introduced to prohibit unwarranted charges on electronic money services.
- Payment Aggregation Regulation: Draft regulations for payment aggregation services were developed, with final issuance expected in 2025.
- Crypto Asset Framework: The Bank drafted a framework for crypto assets and stablecoins, set for stakeholder review in 2025.
- Open Finance Assessment: An open finance feasibility study produced a draft roadmap, currently under review.
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. The impressive growth in transaction volumes and values, coupled with strategic policy interventions and technological enhancements, underscores commitment to fostering a resilient financial ecosystem.
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. Moving forward, sustained collaboration among stakeholders and adaptive regulatory frameworks will be critical to maintaining momentum and ensuring that the benefits of digital financial services reach all segments of society.
