Digital payment systems in Africa have grown significantly, with transaction volumes increasing by 37% over the past five years, indicating a shift in the continent’s financial ecosystem.
This growth is outlined in the 2024 State of Inclusive Instant Payment Systems In Africa (SIIPS) Report, released in Accra, Ghana, earlier this week.
According to the report, 31 Instant Payment Systems (IPS) are now operational across 26 African countries, with 27 more nations preparing to launch similar systems.
However, the report also notes ongoing challenges in achieving financial inclusion, particularly for women and vulnerable groups, who continue to face issues such as fraud concerns and limited recourse mechanisms when using digital platforms.
Dr. Robert Ochola, CEO of AfricaNenda, commented on the report: “AfricaNenda and its partners are calling for a push to expand IPS and provide solutions that address the needs of all citizens, especially in rural and underserved areas. The goal is to ensure universal financial inclusion by 2030.”
The report also highlighted that while IPS transaction values have risen by 39%, there is still a need for stronger systems to address security and network reliability issues.
Recourse mechanisms, particularly important for women who often feel unsafe using digital payment platforms, are essential for fostering trust and broader adoption.
Jean Pesme, Global Director of Finance at the World Bank, discussed the potential of IPS: “Access to safe, low-cost, and efficient digital payments can transform lives, close the gender finance gap, and promote resilience. While progress is evident, more needs to be done to encourage fintech development and private sector participation.”
Sabine Mensah, Deputy CEO of AfricaNenda Foundation, also called for greater data transparency in the financial sector, urging regulators to improve the regulatory framework.
The SIIPS report calls for faster innovation in fintech licensing, universal adoption of IPS, and the development of cross-border payment systems. These measures, the report suggests, will help create a more inclusive and interconnected digital payment infrastructure, bringing Africa closer to universal financial inclusion.
