State of mobile money in Zambia (2023)

Over the last few years Zambia’s mobile money ecosystem has grown exponentially with a notable spike during the COVID-19 pandemic. With approximately 57% (11.24mn) of Zambia’s total population using mobile money services (2022), adoption is significantly ahead of regional counterparts such as Zimbabwe (25.8%), Malawi (35%) and Angola (2.9%). Let’s explore who the important players in this market are along with some of the factors that have spurred growth of mobile money in Zambia…

Players & services offered

MTN, Airtel and Zamtel are the dominant players in Zambia’s market offering the following services:

1. Money Transfer: Users send/receive money domestically making it easier for individuals/businesses to transact outside of banking channels.
2. Bill Payments: customers can pay utility bills, school fees, and other invoices through mobile money wallets.
3. Airtime Purchase: buying airtime and internet data packages directly from their mobile money accounts.
4. Financial Products: savings and loan products, promoting financial inclusion and encouraging a culture of saving among users.
5. Merchant Payments: Mobile money services allow users to pay for goods and services at registered merchants, encouraging cashless transactions and supporting local businesses.
6. Cash Withdrawal: Users can withdraw cash from their mobile money accounts through a network of agents strategically placed across the country.
7. International Remittances: allowing users to send/receive money from relatives and friends abroad.

This range of services has led to mobile money having the bulk of transaction volumes in Zambia’s payments industry:

Zambia’s Interbank Payments and Settlement System (ZIPSS) has however been the dominant party when it comes to transaction values: