Instant payment systems with cross-domain functionality are Africa’s most popular as of Q2 2024

Key takeaways

  • Sovereign currency-backed instant payments are rare, suggesting limited adoption of central bank digital currency (CBDC) models.
  • Cross-domain instant payment systems are the most popular, showing a strong push for interoperability across financial platforms.
  • Instant payment systems with only bank participants are still widely used, indicating that traditional financial institutions remain central to digital transactions.
  • Some African countries operate multiple instant payment systems, enhancing financial access through diverse options.

Africa’s instant payment landscape is evolving, with cross-domain systems leading in 13 countries, highlighting a strong push for interoperability. These systems allow seamless transactions across banks, mobile money platforms, and fintech services, reducing reliance on cash. Mobile money-based systems are active in 9 countries, reflecting the widespread adoption of telecom-driven financial services, as seen with M-Pesa in Kenya. Bank-led systems operate in 8 countries, showing that traditional financial institutions still play a crucial role in instant payments. Nigeria's e-naira is the only sovereign currency-backed system, suggesting that government-led digital payment innovations remain limited. Many nations use multiple systems, strengthening financial access.

Source:

AfricaNenda foundation

Period:

Q2 2024
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