Mobile money yet again in 2023 was the most prefered retail payments platform growing in quantum by 53% to K452 billion according to paymemts data released by the Bank of Zambia. Africas’s second largest copper hotspot has seen an exponential boom in usage of mobile payment platforms with the largest soar observed in the COVID 19 pandemic era.
Supporting this boom is the digitalization, democratization and decentralization around the mobile banking modeling. A continued upscale in agency models adopted by local banks which coupled with integrations between commercial banks and mobile network operators such as Zamtel, Airtel Networks and MTN in the quest to enable transact-ability that has allowed for ‘pushing and pulling’ of funds in far remote areas that may not have the benefit of banking physical infrastructure but are served by telecommunications masts. The agency model wave reality is awakening most financial institutions than underestimate is expanse and as key enabler of the finclusion journey.
This has accelerated the financial inclusion agenda over the years. This record milestone accounts for 56% of all retail payments totaling K890 billion in 2023 to include Point of Sale (POS), automated teller machine (ATM) withdrawals and electronic funds transfers (EFT). General retail payments size grew 37% year on year.
Transaction volumes for mobile money rose 42% to 2.24billion accounting for 95% of all retail payments and rose 42% from previous year as adoption rates scale higher. Average transaction amount was K202 which rose 8% from previous year.
Other retail payments used in the year were EFTs and POS at K142.1 billion and K143 billion which expanded 27% and 24% respectively from previous years. Average transaction amount for EFTs and POS were K13,549 and K1,998 a 10% and 11% rise year on year respectively.
ATM payments rose 8% to K63.9 billion and accounted for 8% of retail payments with average transaction amount K1,831, 2% higher than in FY22.
Cheque usage continues to dwindle in preference that accounted for 1% of the retail payments cake at K7.8 billion. The FY23 cheque payments contracted 8% in value and 7% in transaction volumes to 1.16 billion. The average transaction amount infinitesimally ebbed 1% to K6,688 year on year.
Zambia is expected to record another rapid wave of digital transformation as internet peneration rates are poised to scale with the coming of Elon Musks Starlink with the ambition to connect the countries remotests parts with speedy internet. Other enablers include fibre accessibility and expansion in most parts of the country supported by initaitives to lower costs of android devices that will aid transactability.
Cybersecurity risks remain a concern on the mobile paltform which the central banks in 2023 rolled out the cybersecurity guidelines to improve safety posture and integrity of payment platforms.
The Kwacha Arbitrageur