Despite the exponential growth of transactions over the past five years, none of the 31 active Instant Payment Systems (IPS) in Africa have reached a mature level of inclusivity, according to SIIPS 2024.
In 2023, these systems processed 49 billion transactions with a total value of $1,036 billion, as highlighted in the report "The State of Inclusive Instant Payment Systems in Africa - SIIPS 2024", published by AfricaNenda with the support of the World Bank and the United Nations Economic Commission for Africa. Transaction volumes grew by an average of 37% annually between 2019 and 2023, while their value increased by 39% per year over the same period.
As of June 2024, Africa had 31 IPS, including 28 national and 3 regional systems: PAPSS, GIMACPAY (CEMAC), and TCIB (SADC). Two new systems were launched between July 2023 and June 2024: KWiK (Angola) and LeSwitch (Lesotho). However, three systems were decommissioned, including SYRAD (Djibouti), NamPay (Namibia), and the Somali network, which is undergoing modernization.
Seven countries, including Ghana, Morocco, and Nigeria, operate multiple IPS. However, only Ghana ensures their interoperability. Currently, 26 African countries utilize IPS, but this number could double with 27 projects underway.
Mobile applications dominate the channels used, integrated by 30 systems for their user-friendliness and customization. USSD protocols, utilized by 23 IPS, offer accessibility via basic phones despite security vulnerabilities. Agent-assisted channels and solutions based on QR codes or NFC technology remain underutilized.
All IPS support P2P (person-to-person) payments, while 24 enable P2B (person-to-business) transactions. However, only 12 include P2G (person-to-government) payments, and 6 offer cross-border or G2P (government-to-person) functionalities.
Despite these advancements, no system has reached a mature level of inclusivity. Twelve IPS provide only basic support, and ten fail to meet fundamental inclusivity criteria, particularly regarding P2B use cases. However, some systems, such as Instant Pay (Ghana) and GIMACPAY (CEMAC), are making strides toward the ideal stage, characterized by reduced costs and transparent redress mechanisms.
While the growth of IPS in Africa is promising, the challenge remains to ensure universal accessibility and widespread adoption to drive financial inclusion across the continent.
