Africa’s financial landscape is undergoing a profound transformation, driven by the rise of instant payment systems (IPS), the new digital backbone of the continent’s economy. As of June 2024, 28 domestic IPS operate across 20 African countries, with 31 more in development. This signals a continental shift in how 1.5 billion Africans will exchange value by 2030.

Sub-Saharan Africa already leads the world in mobile money, accounting for two-thirds of global transactions and processing over $912 billion annually. Nigeria’s NIBSS Instant Payment (NIP) system alone processed ₦1.08 quadrillion in 2024, a 79.6% increase from the previous year, making it the sixth-largest real-time payments system globally.

What Are Instant Payment Systems?

Instant payment systems enable real-time, account-to-account transfers that settle within seconds, 24/7/365. Unlike traditional payments that may take days to clear, IPS provide immediate confirmation, transforming how consumers and businesses move money.

These systems serve as core digital infrastructure for financial innovation, powering everything from mobile wallets to merchant payments while cutting out intermediaries, reducing costs, and expanding financial access across urban and rural areas.

Africa’s Instant Payments Landscape

Regional Leaders

• Nigeria: NIBSS Instant Payment processed 11.3 billion transactions in 2024, a 16.6% year-on-year increase.
• Kenya: PesaLink and mobile money interoperability offer seamless payment experiences.
• Tanzania: TIPS connects banks and mobile money operators.
• Ghana: GhIPSS Instant Pay enables real-time payments and interoperability.
• South Africa: PayShap provides inclusive access to instant payments for all citizens.

Four IPS Models Across Africa

1. Bank IPS – connecting traditional financial institutions.
2. Mobile Money IPS – led by telecom operators.
3. Cross-Domain IPS – linking banks and mobile money systems.
4. Sovereign Currency IPS – supporting central bank digital currencies (CBDCs).

Seven African nations now run multiple IPS platforms, providing flexible and interconnected payment networks.

Why Instant Payments Matter for Africa

1. Driving Financial Inclusion

Instant payments are critical to closing Africa’s financial inclusion gap. With 26% of Nigerians still unbanked, IPS enable:

• Easy account-to-account transfers without physical branches.
• Integration with agent networks for remote access.
• Mobile-first services for digital-savvy users.

This has helped raise Nigeria’s financial inclusion rate to 76% as of 2023.

2. Reducing Transaction Costs

Cross-border transfers in Africa currently cost 8–9% per transaction, nearly triple the UN SDG target of 3%. With systems like PAPSS (Pan-African Payment and Settlement System), instant payments can save the continent over $5 billion annually by cutting costs and eliminating the need for dollar-based conversions.

3. Enabling Business Growth

For Africa’s micro, small, and medium enterprises (MSMEs),which make up 80% of employment, instant payments improve liquidity and reduce administrative burdens through:

• Immediate settlement and better cash flow management.
• Lower transaction costs compared to card networks.
• Simplified invoicing and reconciliation.

Platforms like Moniepoint (Nigeria) and Yoco (South Africa) show how instant payment tools can empower entrepreneurs.

4. Fostering Innovation

Instant payments also fuel financial innovation through:

• Buy-now-pay-later (BNPL) models.
• Embedded finance integrated into everyday apps.
• Real-time lending and automated savings products.
  These new solutions are transforming how Africans interact with financial services.

Technology Powering the Transformation

Blockchain and Distributed Ledger Technology

Blockchain is redefining Africa’s payment infrastructure. Zone, Africa’s first regulated blockchain network for payments, licensed by the Central Bank of Nigeria, demonstrates this shift. Zone enables:

• Direct, peer-to-peer connections between banks and fintechs.
• Instant settlement with no intermediaries.
• Automated reconciliation and enhanced reliability via decentralization.
• Predictive analytics for optimized transaction routing.

Such advancements highlight how blockchain can deliver speed, transparency, and cost efficiency at scale.

Infrastructure Gaps

Despite rapid progress, 60% of Africans remain offline. Expanding reach requires:

• Offline transaction tools using NFC or Bluetooth.
• USSD services for feature phones.
• Agent networks for cash-in/cash-out.
• Solar-powered connectivity for remote areas.

Regulatory Harmonization

The African Continental Free Trade Area (AfCFTA) is promoting policy alignment through:

• Fintech license passporting (Ghana–Rwanda framework).
• Mutual recognition among central banks.
• Standardized APIs for interoperability.
• Unified consumer protection standards.

Interoperability Requirements

True success lies in seamless connectivity across:

• Banks, mobile money operators, and fintechs.
• National and cross-border systems.
• Traditional and digital payment methods.

PAPSS is already enabling instant cross-border transfers in local currencies, removing the need for dollar-based settlements.

Key Trends Shaping the Future

1. Convergence of Payment Methods – diverse platforms coexisting yet integrated beneath the surface.
2. Blockchain Adoption – financial institutions embracing regulated distributed ledgers.
3. Currency Innovation – CBDCs and stablecoins easing cross-border flows.
4. AI-Driven Personalization – smarter, more secure payment experiences.
5. Embedded Finance – payments seamlessly built into daily life apps and ecosystems.

Conclusion: Africa’s Payments Leadership

Africa’s instant payment revolution isn’t just about speed; it’s about reshaping the continent’s financial infrastructure for the digital age. By leapfrogging legacy systems and adopting blockchain-based solutions, Africa is emerging as a global payments innovation leader.

Instant payments are laying the digital backbone for financial inclusion, trade, and entrepreneurship. As innovators like Zone demonstrate, Africa is not merely catching up with the world ,it’s creating models that could define the future of global finance.

The message is clear: Africa’s payment future is instant, inclusive, and innovative.