Africa is recording a remarkable performance in instant payments with 49 billion transactions processed in 2023 for a total of 1.036 trillion USD. This observation comes from a study conducted by AfricaNenda, in collaboration with the World Bank and the United Nations Economic Commission for Africa. Despite these impressive figures, no system on the continent has yet reached a level of inclusive maturity.
Rapid growth and persistent structural challenges
Between 2019 and 2023, the volume of transactions via instant payment systems (IPS) increased by an average of 37 % per year, while the value increased by 39 % annually. This trend illustrates the rapid adoption of these systems by populations and businesses. However, of the 31 active systems in 2024, none fully meets the criteria of inclusivity, an essential parameter to ensure accessibility for all.
In total, Africa has 28 national systems and 3 regional systems in 2024. Among these initiatives are the Pan-African Payment and Settlement System (PAPSS), GIMACPAY in the Central African Economic and Monetary Community (CEMAC) zone, and TCIB in the Southern African Development Community (SADC). Furthermore, two new systems have recently emerged : KWiK in Angola and Le Switch in Lesotho. Meanwhile, three platforms are excluded from the census due to not meeting availability and functionality criteria, including SYRAD in Djibouti and NamPay in Namibia.
Distribution and diversity of models
Real-time money transfer solutions on the continent are divided into four groups :
- Multi-domain systems favoring interaction between bank accounts and mobile wallets, dominating with 14 platforms.
- Mobile money-specific systems : 9 platforms recorded.
- Banking systems : currently 7.
- Systems based on a central bank digital currency : only one, which is Nigeria’s eNaira.
Mobile money IPS, despite a higher transaction volume, lags in terms of total value processed. Person-to-person (P2P) transactions are the standard adopted by all listed systems. In contrast, only 24 systems allow person-to-business (P2B) payments, and 12 authorize person-to-government (P2G) payments. Cross-border payments and government-to-person (G2P) payments remain limited to 6 platforms each.
Technology : Drivers and obstacles
The use of mobile applications predominates in 30 recorded systems. These tools offer a personalized experience tailored to users’ needs. In parallel, USSD protocols, accessible on basic phones, are employed by 23 systems.
However, this technology suffers from security issues, notably the lack of message encryption. Other channels like banking agents, QR codes, and near-field communication (NFC) remain marginally adopted. Universal access to reliable and secure services thus depends on technological diversification and optimization of existing infrastructures.
Financial inclusion : Progress and limits
Ghana, the only country with full interoperability of its systems, stands out in a fragmented landscape. Nine systems on the continent show progress towards greater inclusivity, including Mobile Money Interoperability in Ghana and GIMACPAY in Central Africa.
These platforms tend towards an ideal model combining reduced costs and expanded use case coverage, akin to the instant payment system soon to be launched in the UEMOA zone. However, the majority of systems remain at a basic level, often limited to one main channel or minimal functionalities. Accessibility for rural populations, generally excluded from sophisticated digital services, represents a major challenge to achieving equitable financial inclusion.
Progress towards mature inclusivity
With 27 countries preparing to launch their systems, the number of active platforms could double in a few years. This evolution aims to enrich the range of services and enhance access to digital financial tools. However, emphasis will need to be placed on criteria such as interoperability, data security, and affordable costs to ensure widespread adoption.
The harmonization of regulatory frameworks at the continental level could play a key role in improving the performance of instant payment systems. Strategic partnerships between governments, financial institutions, and technology players appear indispensable to overcome current challenges.
