Navigating Zambia’s Mobile Money and Remittance Surge With FinTech Solutions

The financial landscape in Zambia is witnessing a significant shift, with mobile money transactions growing exponentially this decade. Picture this, the value of mobile money transactions in 2023 soared by an astonishing 52.8%, hitting K452 billion from K296 billion in 2022. 

According to the FinScope Zambia survey, financial inclusion in Zambia has increased by 10.1 percentage points to reach 69.4% from 59.3% in 2015. The survey highlights that even though Zambia has a bank-focused financial sector, mobile money has become a significant factor in driving financial inclusion. The rise of mobile money has been particularly beneficial in rural areas where access to traditional banks is limited.

Additionally, remittances are a crucial part of Zambia’s economic framework, with the volume of remittances in Zambia totalling over $400 Million, providing a vital lifeline for many families throughout the country. Meanwhile, digital remittances are projected to hit transaction value of US$11.29 million in 2024, with an annual growth rate of 7.38%, reaching a projected total of US$15.01 million by 2028.

The convergence of these trends raises intriguing questions about the evolving preferences and behaviours of Zambian consumers. The rise of mobile money suggests a potential shift away from traditional payment methods. This presents a compelling opportunity for financial players to capitalise on the growing demand for efficient digital payment solutions.

Digital platforms present an unprecedented opportunity for financial institutions to expand their reach and impact. Fintechs, with their agility and innovation, offer a gateway to untapped market segments. By partnering with fintechs, banks can leverage the tech infrastructure of these agile disruptors to extend their services beyond borders.

Furthermore, the collaborative efforts of fintechs and banks are instrumental in boosting interoperability, laying the groundwork for an interconnected financial ecosystem. By bringing together their respective strengths and capabilities, these partnerships can drive the development of unified payment systems.

In the broader context of cross-border transactions, the partnership between fintechs and banks assumes an even greater significance. By uniting their resources and expertise, these entities can facilitate better FX services, timely liquidity solutions, and ease the stress associated with international transactions. This collaborative approach not only enhances the efficiency and affordability of remittance services to the end user but also enhances trade and investment flows, ultimately contributing to economic growth not only within Zambia but also across the wider regional landscape.

AZA Finance emerges as a key player in the cross-border payments space, offering best-in-class payments, FX, and treasury services tailored to meet the diverse needs of financial institutions and corporates in Zambia. As financial players in Zambia seek to navigate this transformative period in the country’s financial landscape, partnering with AZA Finance can provide the speed and efficiency required to cater to the evolving consumer preferences.

About AZA Finance

AZA Finance is an African fintech company offering secure and efficient financial infrastructure for payments, foreign exchange, and settlement. With more than a decade of experience, AZA Finance is committed to helping your business thrive in Africa. With our API and web platform, it has never been easier to transact, exchange, payout, and settle in all major African and G20 currencies. Our global infrastructure is a trusted gateway for leading remittance providers, multinational corporations, and innovative enterprises worldwide.

• More than ten years as Africa’s leading cross-border payments provider
• Transparent pricing and deep liquidity across 115+ markets via our robust API and intuitive web platform
• Certified by world-class security standards, including PCI-DSS, ISO 27001:2022 and SOCII 
• Fully regulated and licensed, including by the Bank of Uganda, the Bank of Spain, and the UK Financial Conduct Authority
• Direct payout to bank accounts, mobile money wallets, and cash
• Featuring seamless onboarding and automatic beneficiary screening for effortless transfers 
• 99.5% uptime and 24/7 support, making it easier than ever for your business to operate

To learn more about AZA Finance, visit www.azafinance.com.