32 Interbank Payment
Systems (IPS) processed nearly 32 billion transactions worth close to $1.2
trillion in the year 2022, according to the State of Inclusive Instant Payment
System (SIIPS) in Africa 2023 Report.
These figures not only
underscore the immense growth in digital financial transactions but also point
to a future where Africa is increasingly embracing the convenience and
efficiency of electronic payments.
Over the past five years,
the number of transactions processed by IPS systems in Africa has seen an
astonishing increase. The average annual growth rate for transaction volume
stands at a remarkable 47%, accompanied by a 39% growth in the total transaction
value. This meteoric rise reflects the continent's growing reliance on digital
payment solutions.
This surge in digital
transactions can be attributed to several factors, including increased access
to smartphones and the internet, the expansion of mobile banking services, and
the continuous efforts of governments and financial institutions to promote
digital financial inclusion.
One of the intriguing
insights from the data is the increasing significance of IPS systems in terms
of the Gross National Income (GNI) of African countries. IPS systems are
increasingly processing a substantial dollar amount as a percentage of the GNI.
This reflects the growing role of digital payments in the economies of African
nations.
Notably, nine countries
processed IPS value at 10% of GNI or above, with three of these countries
processing IPS value in excess of 100% of their GNI in 2022. These
front-runners in the digital payment revolution are Ghana, Nigeria, and Uganda.
Their robust digital payment ecosystems have not only reshaped financial
transactions but have also significantly contributed to their economic growth
and financial inclusion efforts.
SIIPS 2023 explores the
evolution of both the supply and the demand side of instant retail payments. It
highlights the challenges and opportunities shaping Africa’s landscape to equip
stakeholders with insights they need to motivate investment, partnerships, and
progress toward inclusivity.
This year’s edition
highlights further developments in the IPS landscape and includes a spotlight
on cross-border retail payment and policy and regulatory harmonization in
Africa.
By: Nana Appiah Acquaye
