Exploring the Pulse of Instant Payment Systems in Africa: SIIPS 2023 Unveils Insights.

The State of Inclusive Instant Payment Systems in Africa

In today's fast-paced world, the need for quick and easy access to financial services is more critical than ever. This is especially true in Africa, where a growing number of people are using digital platforms to manage their finances. Instant payment systems (IPS) have emerged as a key tool for facilitating these transactions, and inclusive instant payment systems (IIPS) are essential for ensuring that everyone has equal access to these services.

What are IPS and IIPS?

IPS are retail payment systems that enable digital push payments in near real-time, 24 hours a day, 365 days a year. IIPS takes this further by ensuring that these systems are accessible to everyone, regardless of income or location. This means that IIPS is available for use by low-value, low-cost push transactions that are irrevocable and based on open-loop and multilateral interoperability arrangements.

Why does IIPS matter?

There are several reasons why IIPS is important for Africa. First, they can help promote financial inclusion by providing access to digital payment services for everyone, regardless of their income or location. This can help to reduce poverty and inequality, and it can also boost economic growth.

Second, IIPS can help to improve the efficiency of financial transactions. By enabling near real-time payments, IIPS can reduce the time and cost of sending and receiving money. This can benefit businesses and individuals alike.

Third, IIPS can help to promote innovation in the financial sector. By providing a platform for new products and services to be developed, IIPS can help to improve the overall quality of financial services in Africa.

What are the challenges of implementing IIPS?

There are a number of challenges that need to be addressed in order to implement IIPS in Africa. These include:

• Affordability:?IIPS needs to be affordable for everyone to be truly inclusive. This means that they need to be priced competitively with other payment methods.
• Accessibility:?IIPS needs to be accessible to everyone, regardless of their location or level of literacy. This means that they need to be available through a variety of channels, including mobile phones, ATMs, and bank branches.
• Interoperability:?IIPS need to be interoperable with other payment systems in order to be truly useful. This means that they need to be able to send and receive payments from other systems, such as bank accounts and mobile money wallets.

What is being done to promote IIPS in Africa?

A number of organizations are working to promote IIPS in Africa. These include:

• AfricNenda:?AfricNenda is a pan-African organization that is working to promote financial inclusion in Africa. AfricNenda has developed a set of principles for IIPS, and it is working with a number of stakeholders to implement these principles.
• The World Bank:?The World Bank is a global organization that is working to reduce poverty and inequality. The World Bank is supporting the development of IIPS in Africa, and it is providing financial and technical assistance to a number of countries.
• The United Nations Economic Commission for Africa (UNECA):?UNECA is a regional organization that is working to promote economic development in Africa. UNECA is supporting the development of IIPS in Africa, and it is working with a number of countries to develop national strategies for IIPS.

IIPS is a critical tool for promoting financial inclusion and economic growth in Africa. By addressing the challenges of affordability, accessibility, and interoperability, IIPS can help to ensure that everyone in Africa has access to the financial services they need.

Download report here: https://www.africanenda.org/uploads/files/SIIPS_2023_KeyTakeaways_ENG.pdf