Zambia’s National Payment Systems Record Major Leap in Digital Transactions and Reforms
Zambia’s National Payment Systems (NPS) witnessed unprecedented growth and transformation in 2024, bolstered by proactive policy reforms, digital innovations, and a shift in consumer behavior towards cashless transactions. According to the latest NPS performance report, the year marked a milestone in transaction volume, financial inclusion, and regulatory modernization.
Zambia’s mobile money landscape remained dynamic. Though the number of registered mobile money wallets fell to 14.6 million from 17.3 million in 2023 due to a clean-up of dormant and irregular accounts, active wallets stood at 12.3 million, pushing the activity rate to an impressive 84.2%, up from 74.8%. This indicates deeper user engagement and greater confidence in platforms like Airtel, MTN, Zeepay, and Zamtel.
In 2024, the NPS processed over 4.07 billion transactions, reflecting a 9.4% increase from the previous year. The value of these transactions rose by 54.3%, hitting ZMW 5.4 trillion, a significant leap from ZMW 3.5 trillion in 2023.
The Zambia Interbank Payment and Settlement System (ZIPSS) alone registered a 73.5% growth, driven largely by interbank and government payments. The country also saw a notable expansion in Point-of-Sale (POS) infrastructure, with over 53,000 terminals deployed and 160,000+ mobile money agents nationwide.
Zambia’s international remittance sector doubled in value, reaching USD 300 million. Key inbound corridors included the USA and UK, contributing 57% of flows, while India and Tanzania accounted for 35% of outbound remittances. Fintech firms like Zeepay were instrumental in opening new corridors and partnering with mobile network operators to enhance cross-border financial connectivity.
The Bank of Zambia (BoZ) introduced several strategic policies to ensure the robustness of the NPS:
- Extended operating hours for ZIPSS and the Central Securities Depository (07:00–19:30).
- A cheque phase-out roadmap to eliminate outdated paper-based transactions.
- Consumer protection directives, banning unjustified charges on electronic money services.
- Draft regulations for payment aggregators, with finalization expected in 2025.
- A crypto asset framework under development, including provisions for stablecoins.
- Open finance assessments, with a draft roadmap under review.
These efforts align with the BoZ’s 2024–2027 Strategic Plan, emphasizing price stability, financial inclusion, and resilience in a digitized economy.
The 2024 performance of Zambia’s NPS highlights a thriving digital finance ecosystem poised for further innovation. Collaboration between fintechs, banks, telecom operators, and the central bank will be crucial in ensuring continued growth. As Zambia pushes toward a 24/7 digital economy, the focus remains on inclusive financial services that serve every citizen—from urban merchants to rural households.
