Instant payment transactions in Africa up 39% annually over the past five years (report)

AfricaNenda, an independent organization working to develop instant payment systems on the continent, issued a report last November 8 on “the State of the Inclusive Instant Payment Systems in Africa -SIIPS 2023”. The document defines an instant payment system as a payment facility that enables funds transfer and payment confirmation within seconds, 24 hours a day, 7 days a week. They typically operate on a digital platform that can be integrated into mobile banking applications, online services, and point-of-sale terminals.

The report found that Instant payment systems (IPS) active in Africa have handled 32 billion transactions, totaling $1,180 billion in 2022. In terms of numbers, these transactions have recorded an average annual growth of 47% over the past five years. In terms of value, they have grown by an average of 39% over the same period, thanks in particular to the accelerated adoption of digital financial services, driven by the Covid-19 pandemic.

Based on surveys and in-depth interviews with industry leaders, digital financial services experts, micro, small and medium-sized enterprises (MSMEs), and individuals, the report reveals that the continent counted 32 active instant payment systems in 2023, compared with 29 in 2022. These include 29 national systems and 3 regional systems, including the Pan-African Payment and Settlement System (PAPSS). Three new IPS have gone live in the last twelve months: EthSwitch (Ethiopia), Virement Instantané (Morocco) and PayShap (South Africa). Seven countries have more than one IPS, but these systems are interoperable with one another only in Ghana.

Overall, 27 African countries do not currently have an instant payment feature, but this number is expected to decrease significantly in the coming years. Especially since 17 new national IPSs and three regional IPSs are already in development...Read more on Ecofin Agency

Source: Ecofin Agency