NATIONAL PAYMENT

SYSTEMS IN ZAMBIA
ANNUAL REPORT FOR THE YEAR 2022
REGISTERED OFFICES
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NATIONAL PAYMENT
SYSTEMS IN ZAMBIA
ANNUAL REPORT FOR THE YEAR 2022
TABLE OF CONTENTS

Preamble i

Governor's Statement iii

List of Acronyms iv

Executive Summary v

1.0 INTRODUCTION 1

2.0 DEVELOPMENTS AND TRENDS IN INTERNATIONAL PAYMENT SYSTEMS 2

3.0 DEVELOPMENTS IN THE ZAMBIAN NATIONAL PAYMENT SYSTEMS 3

3.1 Real Time Gross Settlement System and ISO 20022 Migration 3
3.2 National Payment Systems Bill 3
3.3 Review of the National Payments Systems Directives on Electronic Money Issuance, 2018 4
3.4 Development of Cyber Security Guidelines 4
3.5 Sandbox Regulations 4
3.6 Pan-African Payment and Settlement System (PAPSS) 4
3.7 Formulation of National Payment Systems Vision and Strategy. 5
3.8 Designation of Payment Service Providers (PSPs) 5

4.0 PAYMENT SYSTEMS OVERSIGHT ACTIVITIES AND RISK ASSESSMENT 6

4.1 Offsite Activities 6
4.2 On-site Inspections and Compliance Assessments of Payment Service Providers 6
4.3 Collaborative Framework on the Oversight of Digital Financial Services 7

5.0 PERFORMANCE OF THE VARIOUS PAYMENT SYSTEMS STREAMS 9

5.1 Systemically Important Payment Systems (SIPS) 9
5.2 Non–Systemically Important Payment Systems 12
5.3 Regional Cross Border Payment Systems 24
5.4 Currency In Circulation 26
5.5 Financial Inclusion 28
5.6 Consumer Protection 28

6.0 CONCLUSION AND OUTLOOK FOR 2023 29

APPENDICES: PAYMENT SYSTEMS STATISTICS 30

Appendix I: Consolidated Statistics 30
Appendix II: Designated Entities as at 31 December 2022 33
Preamble

Pursuant to the Bank of Zambia Act of 1996, the (DDACC) and the Cheque Image Clearing System
primary objective of the Bank of Zambia (BoZ) is to (CICS).
achieve and maintain price and inancial systems
stability. One of the functions of the Bank is to On the other hand, NSIPS are retail payment systems
develop and implement payment, clearing and that do not have the potential to cause signi icant
settlement systems policies so as to promote disruptions in the payments ecosystem. NSIPS
ef iciency, stability and safety of the Zambian include the National Financial Switch (NFS), systems
inancial system, as mandated by the National for mobile money payments, remittances,
Payment Systems Act (NPSA), No. 1 of 2007. Automated Teller Machines (ATMs) payments and
Point of Sale (PoS) payments.
The role of The Bank of Zambia (the Bank) as
overseer of the National Payment Systems (NPS) in The purpose of this report is to present a
Zambia is also guided by the Principles for Financial comprehensive review of trends in the payment
Market Infrastructures (PFMIs) issued by the Bank systems landscape, the associated risks and the
for International Settlements (BIS) and the measures taken by the Bank in 2022. In publishing
International Organisation of Securities Commission this report, the Bank wishes to contribute to
(IOSCO). The PFMIs are the key international enhancing the transparency of its activities in
standards for inancial market infrastructures, i.e., relation to inancial market infrastructures and the
payment systems, central securities depositories, execution of payments, while also endeavouring to
securities settlement systems, central enhance inancial literacy and thus raise awareness
counterparties and trade repositories issued by the about payment-related issues.
Committee on Payments and Market Infrastructures
(CPMI) and the IOSCO. The PFMIs are part of a set of
key standards that the international community
considers essential to strengthening and preserving
inancial stability. In addition to these standards, the
CPMI and IOSCO have published a number of related
documents and further guidance on how to
implement the standards.

The NPS comprise Systemically Important Payment

Systems (SIPS) and Non- Systemically Important
Payment Systems (NSIPS). A SIPS is de ined as a
payment system which has the potential to trigger or
transmit systemic disruptions. This includes
systems that are the sole payment system in a
jurisdiction or the principal system in terms of the
aggregate value of payments, and systems that
mainly handle time-critical, high-value payments or
settle payments used to effect settlement in other
FMIs. SIPS in Zambia include the BoZ operated
Zambia Interbank Payment and Settlement System
(ZIPSS) commonly referred to as the Real Time Gross
Settlement System (RTGS), the Central Securities
Depository (CSD) for Government securities, the CSD
for bonds and shares at the Lusaka Securities
Exchange (LuSE) and the systems operated by the
Zambia Electronic Clearing House Limited (ZECHL),
which include the Direct Debit and Credit Clearing

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 i
Governor's Statement

Payment systems are central to the smooth functioning

of an economy and continue to evolve at a rapid pace. The
systems do not just contribute to the ease and safety with
which inancial transactions occur but are also being
championed as enablers of economic development
through increased inancial inclusion. Over the past year,
the Bank made signi icant progress towards improving
accessibility to inancial services through the payment
systems. This has been to a greater extent enabled by the
strengthening of network infrastructures, new digital
technologies and onboarding of new participants in the
payments ecosystem as well as the offer of new services.

Signi icant growth was witnessed in the overall National

Payment System (NPS) with value and volume increasing
by 45.5% to K 3.0 trillion (2021: K 2.1 trillion) and 52.3%
to 2,841,325,705 (2021: 1,865,946,436), respectively. In
particular, Mobile transactions continued to grow in
2022 with the value and volume of transactions
processed increasing by 74.6% and 89.6% to K295.8
billion (2021: K169.4 billion) and 1,581,355,224 (2021:
834,121,817) respectively. The Growth in Mobile
Through our commitment to our Strategic Plan (2020-
transactions was largely due to the measures taken by
2023) whose key focus is Financial Stability and
the Bank and other stakeholders to promote the use of
Financial Inclusion, the Bank aims to achieve a stable and
digital payment channels through sensitisation
resilient inancial sector as well as reduce the proportion
campaigns and the introduction of additional mobile
of inancially excluded individuals in Zambia. The
payments use cases on the National Financial Switch
measures adopted focus on promoting formal inancial
(NFS).
inclusion, reducing the gender gap, reducing the urban-
rural inancial inclusion imbalance, paying particular
The Bank attended to a number of focus areas during the
attention to inclusion of children and the youths as well
year that included:
as leveraging Digital Financial Services (DFS) in a bid to
Ÿ Promoting the use of digital inancial services - accelerate achievement of inancial inclusion targets.
surpassed the targeted ten million active mobile
We look forward to working with government, regulated
money subscribers in Zambia:
Ÿ Upgrading the Real Time Gross Settlement entities, our fellow regulators, representatives of
(RTGS) System. This reached an advanced stage businesses/organisations, consumers, and cooperating
and is inclusive of the ISO 20022 migration partners, towards developing a more resilient and safe
process. User Acceptance Testing for the local national payment system that will support the digital
RTGS upgrade and cross border payments transformation currently being experienced in Zambia
progressed well and the system go-live is and the world over. As part of our broader strategy to
expected during 2023; create a regulatory environment that enables ef icient,
Ÿ Cross border payments – continued to participate reliable, safe and secure payment systems, we will
in the development of the regional payment continue to promote innovations in the inancial sector
systems and facilitated for Zambia to join the Pan- and to undertake sensitisation campaigns in
African Payment and Settlement System (PAPSS); collaboration with industry players and other key
and stakeholders aimed at promoting the use of digital
Ÿ The process to repeal the National Payment inancial services.
Systems Act, 2007 reached an advanced stage
with the draft bill having been submitted to the
Ministry of Finance and National Planning for
GOVERNOR
further legislative processing.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 iii
List of Acronyms

AI Arti icial Intelligence

AML Anti-Money Laundering
AML/CFT Anti-Money Laundering/Countering the Financing of Terrorism
ATMs Automated Teller Machines
BIS Bank for International Settlements
BoZ Bank of Zambia
CIC Currency in Circulation
CICS Cheque Image Clearing System
CPMI Committee on Payments and Market Infrastructures
COVID-19 Coronavirus disease 2019
CSD Central Securities Depository
DDACC Direct Debit and Credit Clearing
DFS Digital Financial Services
EFTs Electronic Funds Transfers
EMI Electronic Money Issuer
FinCrime Financial Crime
FI Financial Inclusion
FinTech Financial Technology
GDP Gross Domestic Product
IOSCO International Organisation of Securities Commission
LuSE Lusaka Securities Exchange
MDR Merchant Discount Rate
MNO Mobile Network Operator
MSMEs Micro, Small and Medium Enterprises
NFS National Financial Switch
NPS National Payment System
NPSA National Payment Systems Act
NSIPS Non-Systemically Important Payment Systems
PFMIs Principles for Financial Market Infrastructures
PoS Point of Sale
PSP Payment Service Provider
RTGS Real Time Gross Settlement System
SIPS Systemically Important Payment Systems
ZECH Zambia Electronic Clearing House
ZECHL Zambia Electronic Clearing House Limited
ZIPSS Zambia Interbank Payment and Settlement System

iv
Executive Summary

The National Payment System (NPS) in Zambia upgrade of the Zambia Interbank Payment and
continued to grow in 2022. Overall, both the Settlement System (ZIPSS) and migration to the ISO
Systemically Important Payment Systems (SIPS) and 20022 messaging standard. The completion of the
the Non-Systemically Important Payment Systems project is expected to take place in 2023.
(NSIPS) grew by 44.7% and 48.2% in value and
10.7% and 52.5% in volume of transactions Further, the Bank worked with the African
processed in the year, respectively. The SIPS Export–Import Bank (Afreximbank) with the
accounted for 76.4% of the total value of all payment objective of facilitating for Zambia to join the Pan-
streams in 2022 compared to 76.8% in 2021. On the African Payment and Settlement System (PAPSS).
other hand, NSIPS accounted for 23.6% of the total The engagements with the Afreximbank culminated
value of all payment streams compared to 23.2% in in the signing of an agreement on 31 December 2022
2021, signifying a continuation of the upward trend for Zambia to join the PAPSS. The PAPSS is operated
towards contactless payments and mobile by Afreximbank as a centralised payment and
transactions. The improvement in the overall settlement system for intra-African trade in goods
performance of NSIPS continues to be attributed to and services. It is expected to enable instant cross-
the increased usage of mobile transactions and border payments among the African Continental
remittances. Furthermore, new product and service Free Trade Area (AfCFTA) member nations. The
offerings, increased integrations among industry bene its of joining the PAPSS are numerous, and they
participants and the increase in the participants on include enhanced cross-border trade arising from
the National Financial Switch (NFS) contributed to ef icient, faster and affordable cross-border
the overall growth of the NSIPS. payments within the continent.

Currency in circulation increased by 8.9% to K14.6 To enhance consumer protection, the Bank
billion in 2022 compared to 9.8% (K13.5 billion) in continued to collaborate with Payment Service
2021. The bulk of this currency was in banknotes, Providers (PSPs) and other stakeholders in
which accounted for 98.4% (K14.4 billion) while conducting inancial awareness and education
coins constituted 1.6% (K0.2 billion). The Bank campaigns which among others, saw the launch of
issued 150.5 million pieces of mint banknotes and the 'Go Cashless Campaign' in November 2022.
coins valued at K3.9 billion into circulation in 2022 These campaigns were aimed at empowering users
compared to 193.4 million pieces valued at K5.5 of digital inancial services (DFS) with the necessary
billion in 2021. information to safeguard their funds against scams
and frauds. The campaigns were also aimed at
The Bank continued to review various laws, promoting the adoption of DFS among citizens.
regulations, and policies as well as to facilitate
developments relating to payment systems to ensure In line with its strategic objectives, the Bank will
a safe and ef icient NPS. In the continued effort to continue to implement policies that support growth,
enhance the safety of the NPS, the need to enhance modernisation, safety and ef iciency of the national
the cyber resilience of its regulated entities has been payment system in Zambia. The Bank will also
identi ied to be of utmost importance. Globally there continue to monitor developments in the market to
is broad agreement that resilience against cyber- enhance the resilience of the payments ecosystem
attacks in the inancial sector must be strengthened. and safeguard public interest as well as support
This requires extensive public-private cooperation, innovation.
which has been a de ining feature of the Zambian
payment system. Accordingly, the Bank continued to
work on developing cybersecurity guidelines for
issuance to the inancial sector.

In the continued effort to enhance the payment

infrastructure, the Bank made signi icant progress in
implementing the Projects aimed at ensuring the

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 v
2
1.0 INTRODUCTION

This report outlines developments in the NPS in Zambia for the year 2022. The Payment Systems
industry in Zambia continues to record notable growth, arising mainly from increased uptake of
Digital Financial Services, implementation of the National Financial Switch (NFS) and the
initiatives that contributed to inancial inclusion during the year. Several new products were
launched by service providers with the aim to address evolving customer needs.

During 2022, the uptake and adoption of DFS by Zambian consumers continued on an upward
trajectory. However, the NPS also experienced the emergence of new fraud typologies which had
increasing sophistication based on social engineering techniques targeting not only consumers
but also service providers. The cyber threats to the NPS were closely monitored by the Bank and
measures were put in place along with several oversight interventions to support and guide
service providers.

Notwithstanding the foregoing, interests by prospective DFS service providers to enter the
market with competitive substitute products and services continued on the upward trajectory.
As a result, the Bank successfully issued ive licences to new entrants in the payments industry.
The Bank also continued to collaborate with various stakeholders to ensure safety and
ef iciency were maintained in the NPS during 2022.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 1
2.0 DEVELOPMENTS AND TRENDS IN
INTERNATIONAL PAYMENT SYSTEMS

According to the Global Payments Report for 2022¹, despite unprecedented volatility and
uncertainty, the payments industry was resilient throughout the COVID-19 crisis. For the period
between 2021 to 2026, it was noted that digital adoption will remain high among customers and
businesses with non-cash transactions having been on track to achieve a 16.5% compound
annual growth on the back of Asian Paci ic (APAC) and European upticks. Growing digital
payment infrastructure improvements and maturity led to accelerated introduction and
adoption of innovative services in the payments landscape. This resulted in increased demand
for streamlined customer journeys, an optimal payments mix (traditional and new), and value-
added personalised services.

The rapid adoption of mobile payments has driven the acceptance of innovative payment
instruments, such as quick response (QR) code payments, Near Field Communication (NFC),
digital wallets and account-to-account (A2A) payments. The Global Payments Report for 2022
further states that globally, QR code payments are estimated to reach 2.2 billion (volume) in
2025, up from 1.5 billion in 2020. Mobile wallet usage at the point-of-sale is projected to rise to
30% in 2023 from 22% in 2019 globally, and mobile wallet usage in global e-commerce is
expected to grow to 52% in 2023 from 42% in 2019. The shift from cash payments to digital
payments continued to grow, a trend becoming more prevalent in developing economies. The
changing landscape of cross-border payments was partly driven by innovations and the rapid
change in consumer demands as consumers were increasingly willing to use fast and convenient
inancial services.

In addition, the 2022 World Payments Report (WPR)² stated that the aftermath of a period in
which irms diligently prioritised technology transformation to get closer to customers, allowed
for data shared infrastructure, platform capabilities and embedded inance. The global inancial
services sector was allowing progress towards payments being faster and easier. Initially, it was
just about payments, but then it had to be faster payments. This was followed by easy payments
and then the payment aspect had to be invisible in the customer journey. The WPR showed that
the customer experience had become essential in offering payment services. The report, further,
revealed that more convenient and frictionless payment process, and the development of digital
wallets played a crucial role for both individuals and businesses of all sizes. With this
background, it was further estimated that approximately 4.4 billion global consumers would
shop with a digital wallet by as soon as 2023, accounting for 52 percent of e-commerce
payments globally, and 1.6 billion global consumers will pay with digital wallets at the point of
sale (POS) in 2023, accounting for 30 percent of global POS payments.

¹The 2022 McKinsey Global Payments Report - [Link] inancial-services/our-

insights/the-2022-mckinsey-global-payments-report
²Capegimini World Payments Report - [Link]

2
3.0 DEVELOPMENTS IN THE ZAMBIAN NATIONAL
PAYMENT SYSTEMS

In line with its mandate of ensuring safe and ef icient national payment systems, the Bank
continued to review and implement various laws, regulations, policies and to facilitate
developments in the national payment system. The section below highlights developments
undertaken in 2022.

3.1 Real Time Gross Settlement System and ISO 20022 Migration
The Bank reached an advanced stage in the ISO 20022 migration process for both the local Real
Time Gross Settlement (RTGS) System and cross border payments. ISO 20022 was set up by the
International Organisation for Standardisation (ISO) as an open global inancial messaging
standard meant to create consistent message standards across all the business processes in the
inancial industry. It is based on Extensible Markup Language (XML) and thus provides richer
and higher quality data, which will allow for transmission of detailed information about
electronic transactions.

Signi icant progress was made towards the upgrade with User Acceptance Testing (UAT)
completed and system go-live for the upgraded RTGS expected during 2023. With regard to
cross border payments, Zambian commercial banks were generally ready to process in-coming
ISO 20022 messaging standards in line with the Society for Worldwide Interbank Financial
Telecommunication's (SWIFT) deadline of 20 March 2023. The SWIFT infrastructure for
commercial banks were accordingly upgraded to the required version in readiness for
processing ISO 20022 messages.

3.2 National Payment Systems Bill

The National Payment Systems Act 2007 was enacted on 12th April 2007. Over the past ifteen
years, the payment systems landscape has undergone signi icant transformation due to
advancement in technology, which has resulted in new innovations and product developments.
Due to the passage of time, the current National Payment Systems Act No. 1 of 2007 has
regulatory gaps which need to be addressed. Thus, the Bill seeks to:

Ÿ Enhance clarity over the mandate of the Bank of Zambia over payment systems;
Ÿ Include detailed corporate governance requirements to ensure effective functioning of
payment system entities;
Ÿ Include detailed provisions on consumer protection and provide safeguards for funds on
digital platforms;
Ÿ Introduce provisions related to electronic money and related transactions which are not
covered in the current Act;
Ÿ Introduce the principle of regulatory sandboxes to accommodate appropriate regulations
for the enhancement of innovations in payment systems. Through the sandboxes, entities
have an opportunity to test their products before rolling them out; and
Ÿ Introduce the imposition of administrative ines in the oversight of payment systems.

The draft National Payment System bill was inalised in readiness for submission to the Ministry
of Finance and National Planning in January 2023, for further legislative processing.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 3
3.3 Review of the National Payments Systems Directives on Electronic Money
Issuance, 2018
The Bank commenced the process of reviewing the National Payments Systems Directives on
Electronic Money Issuance, 2018 (E-money Directives). The E-money directives were revised in
order to align with developments noted in the payments landscape, particularly with the
increase in innovations and the implementation of the National Financial Switch, a key driver of
inancial inclusion. Other pertinent issues that were considered in the revised directives
pertained to enhancement of consumer protection and resilience of electronic payment
platforms among others. The review and inalisation of the enhanced E-money directives is
expected to be completed in 2023.

3.4 Development of Cyber Security Guidelines

In view of the rapid transformation of the technology landscape and the underlying information
technology (IT) infrastructure supporting the inancial services sector, the Bank identi ied the
need for Financial Service Providers (FSPs) to strengthen their technology resilience against
operational disruptions to maintain con idence in the inancial system. FSPs increasingly
continued to leverage digital platforms to achieve operational ef iciency and to deliver better
services. The increased dependence on digital platforms has the potential to expose FSPs to
cyber and information security threats. In recognition of the increased cyber threats to the
inancial sector, the Bank in collaboration with key stakeholders continued to work on
developing Cybersecurity Guidelines for the sector.

The Guidelines are expected to cover ive cyber and information security control areas namely
Identify, Protect, Detect, Respond and Recover anchored on the National Institute of Standards
and Technology, and other standards such as ISO/IEC27000, Payment Card Industry (PCI) and
Control Objectives for Information and Related Technologies (COBIT) frameworks and
international best practice. The guidelines will be issued in 2023.

3.5 Sandbox Regulations

Following the launch of regulatory sandbox in 2021, the Bank received several enquiries from
entities interested in testing their products. As at end December 2022, the Bank had admitted
two innovations into the Sandbox. The Bank will continue to play its role in promoting
innovations in the inancial sector through the regulatory sandbox to promote the uptake of DFS
and inancial inclusion in the country.

3.6 Pan-African Payment and Settlement System (PAPSS)

The Bank worked with the African Export–Import Bank (Afreximbank) with the objective of
facilitating for Zambia to join the Pan-African Payment and Settlement System (PAPSS). The
Bank's engagements with Afreximbank culminated into the signing of an Agreement for Zambia
to join the PAPSS on 31 December 2022.

The PAPSS is operated by Afreximbank as a centralised payment and settlement system for
intra-African trade in goods and services. It will enable instant cross-border payments among
the African Continental Free Trade Area (AfCFTA) member nations. The bene its of joining the
PAPSS are numerous, and they include the following:

4
 i) Prompt cross-border payments across Africa due to the availability of a fast payment
platform;
ii) Reduced cost and dependency on correspondent banking arrangements for its transactions;
iii) Reduced foreign currency funding as the amount to be paid at end of day by a participant is
on a net basis;
iv) Formalised trade across African countries; and
v) Better and more reliable data on intra-Africa trade.

In view of the above, the Bank continued its efforts to facilitate the joining of the PAPSS by all
interested commercial banks to help promote intra-Africa trade.

3.7 Formulation of National Payment Systems Vision and Strategy

In 2022, the development of the National Payment Systems Vision and Strategy 2023 – 2027
reached an advanced stage. The Vision and Strategy was developed in collaboration with
various stakeholders including FSPs, PSPs and co-operating partners. The strategy is expected
to be inalised in 2023. The Vision and Strategy is a key document that will guide the
development of the Zambian National Payment Systems over a period of ive years.

Signi icant progress was recorded in the Vision and Strategy for 2018 to 2022, with the
following being some of the notable deliverables among others:

i) Achieving interoperability of various payment services through the implementation of the

National Financial Switch (NFS);
ii) Increased DFS adoption and improved inancial inclusion;
iii) Development of regulations to create an enabling regulatory environment and address risks
in the market. Some of these included the Bank of Zambia Act, drafting the National Payment
Systems Bill and various directives and circulars; and
iv) Enhanced data collection through the implementation of the DFS platform.

3.8 Designation of Payment Service Providers (PSPs)

In 2022, the Bank granted licences to ive (5) payment service providers namely: SmileFin
Technologies Limited, PrimeNet Solutions Limited, Izwe Loans PLC, Finclude Zambia Limited
and Speedpay Zambia Limited.

TABLE 1: DESIGNATED ENTITIES AND SERVICES TO BE OFFERED

Name Type of Licence
SmileFin Technologies Limited Payment System Business
Izwe Loans PLC Payment System Business
PrimeNet Solutions Limited Payment System
Finclude Zambia Limited Payment System
Speedpay Zambia Limited Payment System Business

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 5
4.0 PAYMENT SYSTEMS OVERSIGHT ACTIVITIES AND RISK
ASSESSMENT

The activities relating to the oversight of the National Payment Systems by the Bank were guided
by the Bank's oversight framework which is hinged on the NPSA and the PFMIs. Oversight
activities were undertaken through offsite and on-site activities. The oversight activities
undertaken in 2022 are highlighted below:

4.1 Offsite Activities

The Bank continued to conduct its offsite activities which involved, among others, the analysis of
monthly returns from licenced Payment Service Providers (PSPs). The returns provided key
data on performance of PSPs, access points, accounts and amounts held in Trust Accounts, entity
risk exposure, inancial performance, and payment system availability. The analysis of the
various returns formed the basis for periodic reports generated by the Bank to monitor
developments in the national payment systems and helped in inducing change in the market.

The Bank continued to work on improving the compilation and enhancement of offsite reports
from PSPs through the Digital Financial Services (DFS) platform, which is an automated system
for submission of returns by PSPs implemented in 2020 by the Bank to ease the process of
collecting relevant supervisory information. The Bank continued to optimise the DFS platform
to strengthen its offsite monitoring activities. As part of its off-site monitoring activities, the
Bank endeavoured to incorporate market intelligence (information from open sources and/or
whistleblowing) on an on-going basis. This enhanced the Bank's offsite monitoring conducted
during the year.

In its continued effort to enhance compliance to the regulations, the Bank held workshops with
regulated entities as a way to improve regulatory compliance. The workshops focused on
explaining key regulatory requirements and providing guidance on issues of concern raised by
the entities. The workshops were rated as a success since they culminated into notable
improvements in compliance levels.

4.2 On-site Inspections and Compliance Assessments of Payment Service Providers

The Bank continued to conduct its on-site activities which involved on-site examinations and
compliance assessments of Payment Service Providers (PSPs). The Bank conducted ive (5) on-
site inspections of PSPs to assess their compliance with the Bank's laws and regulations in 2022.

Further, the Bank conducted training and reviewed self-assessment reports against selected
Principles for Financial Market Infrastructures (PFMI) for the four systemically important
Financial Market Infrastructures (FMIs) to enhance their resilience. The PFMIs are the
international standards for inancial market infrastructures issued by the Committee on
Payments and Market Infrastructures (CPMI) and the International Organisation of Securities
Commissions (IOSCO) and are considered essential to strengthening and preserving inancial
stability. The Bank reviewed self-assessments conducted by the Bank of Zambia Central
Securities Depository, the Lusaka Central Securities Exchange Securities Depository, the
Zambian Interbank Payment and Settlement System (ZIPSS) and the Zambia Electronic Clearing
house Limited (ZECHL). These are expected to be published in 2023.

In 2023 the Bank plans to continue strengthening its offsite and onsite surveillance of the
regulated PSPs and FMIs to ensure adherence to applicable laws, regulations and standards for
the effective oversight in the industry.

6
4.3 Collaborative Framework on the Oversight of Digital Financial Services
In an effort to enhance the oversight framework for DFS, the Bank in partnership with the
Zambia Information and Technology Authority (ZICTA), Rural Finance Expansion Programme
(RUFEP) and other key stakeholders developed the collaborative framework for the Oversight
of DFS to ensure effective regulation. The framework was formally launched on 23 August 2022,
to provide a co-ordinated approach in the oversight of DFS in Zambia and address the challenges
that impede the increased adoption and usage of DFS. Through collaboration, the framework
will facilitate a predictable regulatory landscape in the ecosystem and ensures that services are
provided ef iciently and safely with due consideration for consumer protection.

In view of the current technological advancements in DFS and the level of oversight required,
collaboration amongst regulators is necessary to ensure a co-ordinated regulatory approach in
the supervision of PSPs. It is expected that the collaboration will help promote ef iciency in the
regulation of service providers, enhance consumer protection policies and guidelines as well as
ensuring that payment service providers are not overwhelmed with multiple compliance
requirements from different regulatory authorities.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 7
8
5.0 PERFORMANCE OF THE VARIOUS PAYMENT
SYSTEMS STREAMS

The NPS, comprised of SIPS and NSIPS, recorded growth of transactions in 2022. The value and
volume increased by 45.5% to K 3.0 trillion (2021: K 2.1 trillion) and 52.3% to 2,841,325,705
(2021: 1,865,946,436), respectively (Table 2). SIPS and NSIPS accounted for 76.4% (2021:
76.8%) and 23.6% (2021: 23.2%) of the total value of all payment streams, respectively. On the
other hand, NSIPS accounted for the larger volume of all transactions at 99.6% (2021: 99.4%)
whereas SIPS only accounted for 0.4% (2021:0.6%) of the total volumes. This continued to be
driven by the increased adoption and reliance on DFS, including but not limited to substantial
usage of the ZIPSS, mobile payments, point of sale (PoS) terminals and remittances. The table
below shows a comparative analysis of the values and volumes in the SIPS and NSIPS between
the years 2022 and 2021.

TABLE 2: COMPARATIVE ANALYSIS OF TRANSACTION VALUES AND VOLUMES FOR THE DIFFERENT PAYMENT
STREAMS (2022/2021) (VALUES - K 'MILLIONS)
Payment 2022 2021 Change Change Proportion Proportion
Stream Values Volumes Values Volumes (%) (%) (%) (%)
Values Volumes Values Volumes
Systemically Important Payment Systems (SIPS)
CIC 8,503 1,255,734 8,758 1,222,608 -2.9% 2.7% 0.3% 0.0%
EFT 115,248 9,403,971 98,789 8,570,230 16.7% 9.7% 3.8% 0.3%
ZIPSS 2,185,143 1,166,576 1,488,147 895,051 46.8% 30.3% 72.3% 0.0%
SIPS Totals 2,308,894 11,826,281 1,595,694 10,687,889 44.7% 10.7% 76.4% 0.4%
Non-Systemically Important Payment Systems (NSIPS)
ATMs 59,397 33,012,608 57,687 37,189,792 3.0% -11.2% 2.0% 1.2%
Mobile 295,828 1,581,355,224 169,402 834,121,817 74.6% 89.6% 9.8% 55.7%
PoS 111,357 60,141,253 61,477 45,610,803 81.1% 31.9% 3.7% 2.1%
Remittances 247,239 1,154,990,339 193,071 938,3 36,135 28.1% 23.1% 8.2% 40.6%
NSIPS Total 713,821 2,829,499,424 481,637 1,855,258,547 48.2% 52.5% 23.6% 99.6%
NPS Total 3,022,715 2,841,325,705 2,077,331 1,865,946,436 45.5% 52.3% 100.0% 100.0%
Source: Bank of Zambia (CICS in this table means Cheque Imaging Clearing System)

5.1 Systemically Important Payment Systems (SIPS)

Overall, the Systemically Important Payment Systems namely, ZIPSS and the EFTs system grew
in both values and volumes of transactions processed in 2022. The value and volume of SIPS
transactions increased by 44.7% to K2.3 trillion (2021: K1.6 trillion) and 10.7% to 11,825,236
(2021: 10,687,889) respectively (Table 3). However, CICS transactions continued to record a
decline, further signifying the shift in trends towards digital payments.

The increase in value of transactions was mostly notable on the ZIPSS which grew by 46.8%
from the previous year, while the increase in volumes was most notable on the Electronic Fund
Transfer (EFT) payment stream which grew by 9.7%.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 9
 TABLE 3: SYSTEMICALLY IMPORTANT PAYMENT SYSTEMS (SIPS) (VALUES - K 'MILLIONS)
Payment 2022 2021 Change Change
Stream Values Volumes Values Volumes (%) Values (%) Volumes
CIC 8,503 1,255,734 8,758 1,222,608 -2.9% 2.7%
EFT 115,248 9,403,971 98,789 8,570,230 16.7% 9.7%
ZIPSS 2,185,143 1,166,576 1,488,147 895,051 46.7% 30.3%
SIPS Totals 2,308,894 11,826,281 1,595,694 10,687,889 44.7% 10.7%
Source: Bank of Zambia (CICS in this table means Cheque Imaging Clearing System)

5.1.1 Zambia Interbank Payment and Settlement System (ZIPSS)

The ZIPSS recorded an average availability level of 98%, down from 99% recorded in 2021. This
was attributable to some technical challenges experienced during the year which contributed to
the system downtime in May, June, July, August, October and November of 2022.

The value and volume of transactions processed on ZIPSS rose by 46.7% to K2.2 trillion (2021:
K1.5 trillion) and 30.3% to 1,166,576 (2021: 895,051) respectively (Table 3). The trends in
values and volumes of transactions processed on the ZIPPS from 2018 to 2022 are shown in
Figure 1 below.

FIGURE 1: 2.5 1,400,000

ZIPSS Volumes
and Values 1,200,000
(2018 - 2022) 2.0
1,000,000
Values K' trillion

1.5

Volumes
800,000

1.0 600,000

400,000
0.5
Value (LHS) 200,000
Volume (RHS)
0.0 0
Source: Bank of Zambia 2018 2019 2020 2021 2022

The transaction values on the ZIPSS by payment type are as depicted in Figure 2 below while
transaction volumes by payment type are depicted in Figure 3.

2022 ZIPSS Values 2021 ZIPSS Values

FIGURE 2:
Net
ZIPSS Transaction Settlements Customer Net
ZRA ZRA
Values by Payment Transactions 3% Payments Settlements
Type 3% 16% Transactions 3%
4%
Foreign
Exchange Customer
5% Money 23%
Markets
Government
Securities 25%
Money 7% Forex 9%
Markets
45%

Government Interbank Govt Txns Govt

Transactions Txns 15% Securities
11% 12% 9%
Interbank
Transactions
Source: Bank of Zambia 10%

10
 2022 ZIPSS Volumes 2021 ZIPSS Volumes
FIGURE 3:
ZIPSS Transaction Money ZRA
Net Settlements Transactions 2%
Volumes by Payment Money Markets
1% Net Settlements Net Settlements 0%
Type Markets 1%
1%
1% Interbank
…
Txns

Interbank
Transactions
26% Customer Customer
Payments 48%
45%

Government Gov Txns 21%

Transactions
24%

Government Foreign
Exchange Govt Securities 2% Forex 0%
Securities
Source: Bank of Zambia 2% 0%

5.1.2 Lusaka Securities Exchange

The transaction value of net settlement obligations for the Lusaka Securities Exchange (LuSE)
processed on the ZIPSS decreased in 2022 to nil transactions (2021: K147,650.30). Similarly,
the total number of settlement instructions decreased to nil transactions (2021: 11
transactions). The reduction was attributed to settlement obligations being made via the EFT
stream.

5.1.3 The Zambia Electronic Clearing House (ZECHL) Operated Systems

[Link] Cheque Image Clearing System (CICS)

The value of cheques cleared in 2022 decreased by 2.9% to K8.5 billion (2021: K8.8 billion). The
continued decline in the value of cheques cleared is as result of the increased utilisation of
electronic payment methods re lecting changing customer behaviour. The volume of cheques
cleared on the other hand increased by 2.7% in 2022 to 1,255,734 (2021: 1,222,608). (Figure 4).

FIGURE 4: 14.0 2,500,000

Cheque Images
Cleared (2018 – 2022) 12.0
2,000,000
Values K' billion

10.0
1,500,000
Volume

8.0

6.0 1,000,000
4.0
Value (LHS) 500,000
2.0
Volume (RHS)
0.0 -
Source: Bank of Zambia 2018 2019 2020 2021 2022

[Link].1 Cheques Returned Unpaid on Account of Insuf icient Funds

The value of Cheques Returned Unpaid on Account of Insuf icient Funds increased by 7.3% to
K76.5 million (2021: K71.3 million), while the volume of cheques returned unpaid due to
insuf icient funds increased by 8.9% to 7,426 (2021: 6,822). (Figure 5)

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 11
 FIGURE 5: 140.00 16,000
Unpaid Cheques 14,000
120.00
(2018 – 2022)

Values K' Million

100.00 12,000
10,000

Volume
80.00
8,000
60.00
6,000
40.00 4,000
Value (LHS)
20.00 2,000
Volume (RHS)
- -
Source: Bank of Zambia 2018 2019 2020 2021 2022

[Link] Electronic Funds Transfer System (EFTs)

The value of transactions processed on the EFT Clearing System increased by 16.7% to K115.2
billion (2021: K98.8 billion), while the volume of transactions grew by 9.7% to 9,403,971 (2021:
8,570,230) as shown in Figure 6. The continued increase in the use of DFS contributed to this
outturn. (Figure 6)

140,000 10,000,000
FIGURE 6:
120,000 9,000,000
Volumes and Values
Values K' Million

8,000,000
of Electronic Funds 100,000 7,000,000

Volumes
Transfers Processed 6,000,000
(2018 – 2022) 80,000
5,000,000
60,000 4,000,000
40,000 3,000,000
Value (LHS) 2,000,000
20,000 1,000,000
Volume (RHS)
0 0
Source: Bank of Zambia 2018 2019 2020 2021 2022

5.2 Non–Systemically Important Payment Systems

The Non-Systemically Important Payment Systems recorded an overall growth in transactions
processed during the year. The value and volume of NSIPS transactions increased by 48.2% to
K713.8 billion (2021: K481.6 billion) and 52.5% to 2,829,499,424 (2021: 1,855,258,547)
respectively (See Table 4).

The increase in value and volumes of transactions was mostly notable in mobile payments and
remittances streams. Mobile payments values and volumes grew by 74.6% and 89.6% whereas
remittances grew by 28.1% and 23.1% in values and volumes, respectively.

TABLE 4: NON-SYSTEMICALLY IMPORTANT PAYMENT SYSTEMS (NSIPS) (VALUES - K 'MILLIONS)

Payment 2022 2021 Change Change
Stream Values Volumes Values Volumes (%) Values (%) Volumes
ATMs 59,397 33,012,608 57,687 37,189,792 3.0% -11.2%
Mobile 295,828 1,581,355,224 169,402 834,121,817 74.6% 89.6%
PoS 111,357 60,141,253 61,477 45,610,803 81.1% 31.9%
Remittances 247,239 1,154,990,339 193,071 938,336,135 28.1% 23.1%
NSIPS Total 713,821 2,829,499,424 481,637 1,855,258,547 48.2% 52.5%
Source: Bank of Zambia

12
5.2.1 Automated Teller Machines (ATMs) Transactions

In 2022, the value of Automated Teller Machines (ATM) transactions rose by 3% to K59.4 billion
(2021: K57.7 billion). The volume of ATM transactions on the other hand fell by 11.2% to
33,012,608 (2021: 37,189,792). The decrease in the volume was mainly attributed to the
increased usage of mobile money-based transactions and point of sale for payments. (Figure 7)

70,000 50,000,000
FIGURE 7:

Values K' Million

Automated Teller 60,000
40,000,000

Volumes
Machine Transactions 50,000
(2018 – 2022) 40,000 30,000,000
30,000 20,000,000
Value (LHS) 20,000
10,000,000
Volume (RHS) 10,000
0 -
Source: Bank of Zambia 2018 2019 2020 2021 2022

[Link] Number of Automated Teller Machines (ATMs)

In 2022, the number of ATMs declined to 989 from 995 in 2021. This was mainly due to the
decommissioning of ATMs by some of the service providers. Nevertheless, the distribution of
the ATMs remained broadly unchanged. Table 5 below shows the nationwide provincial
distribution of ATMs.

TABLE 5: NATIONWIDE DEPLOYMENT OF ATMS BY PROVINCE

Province 2022 2021 Share (%)
Lusaka 479 479 48%
Copperbelt 224 228 23%
Southern 72 72 7%
North-western 54 56 5%
Central 46 46 5%
Eastern 38 39 4%
Northern 20 21 2%
Luapula 18 19 2%
Western 19 18 2%
Muchinga 19 19 2%
Total 989 995 100%

Source: Bank of Zambia

[Link] Number of ATM Cards Issued

The total number of ATM cards in circulation as at end December 2022 increased by 5.8% to
3,406,017 from 3,220,473 as at end December 2021. Of these, the number of debit cards issued
were 3,039,601 (89.2%) while the number of credit and prepaid cards in issue were 11,751
(0.4%) and 354,665 (10.4%) respectively.

5.2.2 Point of Sale (POS) Transactions

The value and volume of POS transactions increased by 81.1% to K 111.4 billion (2021: K 61.5
billion) and 31.9% to 60,141,253 (2021: 45,610,803). The increase in POS was mainly on
account of continued adoption of DFS and the increase in the total number of POS machines,
39,159 (2021: 29,238). Figure 8 below depicts the trend in POS transactions for the period 2018
to 2022.
NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 13
 FIGURE 8: 120 70,000,000
Transactions Processed
Through PoS Terminals 100 60,000,000
(2018 – 2022) 50,000,000

Values K' billion

80

Volumes
40,000,000
60
30,000,000
40
20,000,000
Values (LHS) 20 10,000,000
Volumes (RHS) 0 -
2018 2019 2020 2021 2022
Source: Bank of Zambia

The distribution of PoS terminals across the country remained largely unchanged with Lusaka
province maintaining the highest number and Muchinga continuing to be the province with the
lowest number of PoS terminals deployed.

TABLE 6: NATIONWIDE DEPLOYMENT OF POS TERMINALS BY PROVINCE (2021 – 2022)

Province 2022 2021
Lusaka 18,163 13,736
Copperbelt 7,788 6,008
Southern 3,379 2,610
Central 2,676 1,701
Eastern 2,570 1,707
Northern 1,205 791
North-western 938 848
Luapula 905 668
Western 847 595
Muchinga 688 574
Total 39,159 29,238
Source: Bank of Zambia

5.2.3 Remittances (Money Transfer Transactions)

The remittances market (International and Domestic) recorded growth in transactions during
the period under review. The value and volume of transactions increased by 28.1 % to K 247.2
billion (2021: K193.1 billion) and 23.1% to 1,154,990,339 (2021: 938,336,135).

[Link] Inbound International Remittances

The value of international inbound remittances through Money Transfer Operators reduced by
14.1% to K4.1 billion (2021: K 4.8 billion). The volume on the other hand increased by 5.3% to
1,602,602 (2021: 1,522,282) (See Figure 9). The reduction in the value of remittances was
mainly on account of the appreciation of the Kwacha against major currencies. The United States
of America (USA) and United Kingdom (UK) remained the main source countries accounting for
51% of the total international inbound remittances (See Figures 10 and 11).

14
 6,000 1,800,000
FIGURE 9:
Inbound International 1,600,000
5,000
Remittances 1,400,000
(2018 – 2022)

Values K'million
4,000 1,200,000

Volume
1,000,000
3,000
800,000
2,000 600,000
400,000
Value (LHS) 1,000
200,000
Volume (RHS)
- -
Source: Bank of Zambia 2018 2019 2020 2021 2022

FIGURE 10: Others

Tanzania 14%
Top 10 Country Botswana 1%
In-bound 2%
Remittances - 2022 United States
Zimbabwe 30%
2%
Canada
3%
Australia
5%

Congo
6%

South Africa United Kingdom

7% 21%
Malawi
Source: Bank of Zambia 9%

FIGURE 11:
Distribution of
In-bound
Remittances - 2022

Source: Bank of Zambia

[Link] Outbound International Remittances

The value and volume of outbound international remittances increased by 11.5% to K 1.9 billion
(2021: K 1.7 billion) and 54.4% to 869,464 (2021: 563,282) (See Figure 12). Tanzania and India
remained the main recipient countries accounting for 34% of the total international outbound
remittances (see Figure 13 and 14).

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 15
 FIGURE 12: 1,200 1,000,000
Outbound
Remittances 800,000

Values K'Million
(2018 – 2022)

Volumes
600,000
1,000
400,000

Value (LHS) 200,000

Volume (RHS)
800 -
Source: Bank of Zambia 2018 2019 2020 2021 2022

FIGURE 13: Tanzania

Total 10 Countries Others 18%
Out-bound 29%
Remittances - 2022

India
Malawi 16%
3%
Nigeria
3% Zimbabwe
Congo DR 7%
4% Uganda Kenya
4% Rwanda South Africa 6%
Source: Bank of Zambia 5% 5%

FIGURE 14:
Distribution of
Out-bound
Remittances - 2022

Source: Bank of Zambia

Zambia continued to be a net receiver of funds amounting to K 2.2 billion (2021: K 3.1 billion) as
highlighted in Figure 15 below.

FIGURE 15: 3.5 3.1

International 3.0
Remittances Net
Values K'billion

2.5 2.2
Position - Values
(2018– 2022) 2.0
1.5 1.3
1.0
0.5
0.5 0.1
0.0
Source: Bank of Zambia 2018 2019 2020 2021 2022

16
[Link] Local Remittances (Domestic Money Transfers)

The value and volume of local remittance transactions increased by 29.3% to K241.2 billion
(2021: K186.6 billion) and 23.1% to 1,152,518,273 (2021: 936,250,571) as depicted in Figure
16. The increase in both value and volume of transactions was on account of growth of mobile
based transactions and the continued adoption of DFS.

FIGURE 16: 300 1,400,000,000

Local Remittances 250 1,200,000,000
(2018 – 2022)

Values K' Billion

1,000,000,000
200

Volumes
800,000,000
150
600,000,000
100
400,000,000
Value (LHS)
50 200,000,000
Volume (RHS)
0 -
Source: Bank of Zambia 2018 2019 2020 2021 2022

5.2.4 Mobile Transactions

Mobile transactions continued to grow in 2022. The value and volume of transactions processed
increased by 74.6% and 89.6% to K295.8 billion (2021: K169.4 billion) and 1,581,355,224
(2021: 834,121,817) respectively as shown in Figure 17. This was largely due to measures taken
by the Bank and other stakeholders to promote the use of digital payment channels through
sensitisation campaigns and the introduction of additional mobile payments use cases on the
National Financial Switch.

FIGURE 17: 350,000 1,800,000,000

Mobile Payments 1,600,000,000
(2018 – 2022) 300,000
1,400,000,000
Values K' Million

250,000
1,200,000,000

Volumes
200,000 1,000,000,000
150,000 800,000,000
600,000,000
100,000
Value (LHS) 400,000,000
50,000 200,000,000
Volume (RHS)
0 -
Source: Bank of Zambia 2018 2019 2020 2021 2022

[Link] Mobile Money Subscribers versus Mobile Phone Subscribers

The total number of registered mobile phone subscribers in 2022 reported by the three mobile
money operators decreased by 4.3% to 19,048,234 (2021: 19,910,360). The total number of
mobile money subscribers decreased by 13.4% to 15,917,092 from (2021: 19,268,270). The
total number of active mobile money subscribers however increased by 14.0% to 11,246,686
(2021: 9,867,409). Active wallets that had customer-initiated transactions in the last 90 days
constituted 70.7% (2021: 51.2%) of the total number of registered mobile phone subscribers,
representing an upward trend of 19.5% in recorded 90 days active mobile money subscribers.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 17
 FIGURE 18: 25,000,000 100%

% of Active to Registered Mobile Wallets

Mobile Money 90%
Subscribers versus
20,000,000 80%
Active Mobile Money

Subscribers/wallets
Subscribers 71% 70%
15,000,000 60%
Mobile Phone
Subscribers 51% 50%
Registered Mobile 45%
10,000,000 40%
Money Wallets 34%
Active Mobile 30%
Money Wallets 25%
5,000,000 20%
Active to Registered
Mobile Mobile 10%
Wallets (%) 0 0%
Source: Bank of Zambia 2018 2019 2020 2021 2022

[Link] Registered and Active Mobile Money Wallets by Province

The distribution of registered and active mobile money wallets across the ten provinces is
depicted in Figures 19 and 20, respectively. Lusaka and Copperbelt Provinces had the highest
number of both registered and active mobile money wallets.

FIGURE 19: Total Registered

Registered Mobile Account Holders
Money Account
4,030,509
Holders by Province

645,485

Total Registered Mobile

Money Accounts: 15,917,092
Source: Bank of Zambia

FIGURE 20: Total Active MM

Active Mobile Account
Money Account 3,097,473
Holders by Province

397,822

Total Active Mobile Money

Accounts: 11,246,686
Source: Bank of Zambia

[Link] Registered and Active Mobile Money Agents

During the year 2022, the total number of Active Mobile Money Agents grew by the 59% to
247,665 (2021: 156,040). 38% of the total registered mobile money agents were active at end of
2022 as depicted in Figure 21 below.

18
 FIGURE 21:
Inactive
Registered and
Agents,
Active Mobile
409,771,
Money Agents Active Agents, 62%
247,665,
38%

Inactive Agents
Active Agents

Source: Bank of Zambia

[Link] Cross Border Mobile Payments

The value of cross border mobile money payments reduced by 6.1% to K2.3 billion (2021: K2.5
billion) while the volume increased by 25.9% to 1,588,559 (2021: 1,261,995). The inbound
cross border mobile money remittances accounted for 76.8% (2021: 86.8%) and 61.3% (2021:
71.9%) of the values and volumes, respectively. The inbound remittances were mainly receipts
from the United Kingdom and the United States of America.

[Link] Mobile Transactions by Type

The total value of mobile transactions (Bank and Non-Bank based) in 2022 by type, shows that
majority involved E-wallet to E-wallet transactions followed by Bulk payment services as
highlighted in Table 8. E-wallet to E-wallet transactions accounted for 63% of the total
transactions by value as shown in Figure 22.

TABLE 8: MOBILE TRANSACTION TYPE BY VALUE

Transaction Type 2022 Values
E-Wallet To E-Wallet 185,448
Bulk Payment Services 59,204
Account To E-Wallet 29,178
Merchant Purchases 9,975
Mobile Utility Services 7,499
Others 4,524
Total 295,828
Source: Bank of Zambia

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 19
 Mobile Utility
FIGURE 22: Others
Services
Mobile Transaction Merchant 3% 1%
Type by Value (%) Purchases
3%

Account To E-
Wallet
10%

Bulk Payment E-Wallet To E-

Services Wallet
20% 63%

Source: Bank of Zambia

On the other hand, the volume of mobile transactions (Bank and Non-Bank based) by type,
shows that the majority of transaction involved Airtime Purchases followed by E-wallet to E-
wallet as highlighted in Table 9. Airtime Purchases accounted for 50% of the total transactions
by volume as shown in Figure 23.

TABLE 9: MOBILE TRANSACTION TYPE BY VOLUME

Transaction Type 2022 Volumes
Airtime Purchase 798,165,362
E-Wallet to E-Wallet 475,143,693
Mobile Utility Services 147,714,898
Bulk Payment Services 77,557,133
Merchant Purchases 74,171,708
Others 8,602,430
Total 1,581,355,224

FIGURE 23: Merchant Purchases Others

Mobile Transaction Bulk Payment 5% 1%
Type by Volume (%) Services
5%

Mobile Utility Airtime Purchase

Services 50%
9%

E-Wallet To E-
Wallet
30%

Source: Bank of Zambia

[Link] Collection of Sex Disaggregated Data

The Bank began collection of sex disaggregated data in 2019. The collection of sex disaggregated
data is important to measure the access and utilisation of inancial services by different sexes
and to devise appropriate policy interventions to address the various challenges faced by
speci ic group of users. In addition, this is important for measuring access to and usage of
inancial services and products by all citizens.

20
 From this initiative, the Bank uses sex disaggregated data for purposes of informing and revising
its strategies and regulatory policies to close the identi ied gender gaps. The gender distribution
of mobile money electronic wallets is shown in Figures 24 to 27.

The overall gender gap on registered mobile money wallets ownership was 9.4% at end of
December 2022. North-western Province had the highest gender gap at 20.5% while
Copperbelt Province recorded the lowest gender gap at 5.2%.

As at end December 2022, 59.2% of the total registered Mobile Money wallets were owned by
youths (aged between 16-35 years). Of these wallets, 5.2 million were owned by males while 4.2
million were owned by females resulting in a gender gap of 10.0%. Northern Province had the
highest youth gender gap at 20.5% while the Copperbelt Province had the lowest youth gender
gap of 4.1%.

FIGURE 24: 4,500,000 25.0%

Registered Mobile 4,000,000
Money Accounts 3,500,000 20.0%
Gender Composition 3,000,000
Registered Accounts

as at end 2022 15.0%

2,500,000

Gender Gap
Total Registered 2,000,000
Account Holders 10.0%
1,500,000
Total Registered 1,000,000
Female Account 5.0%
Holders 500,000
Total Registered - 0.0%
ka lt l n n n n la n ga
Male Account sa be ra r er er r
pu er in
r nt he st st he st h
Holders Lu pe Ce ut Ea e rt a e uc
p So - w No Lu W M
Gender Gap % Co rth
Source: Mobile Money No
Service Providers

Active Mobile money wallet ownership showed an overall gender gap of 9.3% at the end of 2022.
Lusaka Province recorded the highest number of active mobile money wallets at 3.1 million. The
highest gender gap was in Central Province at 20.2% while the lowest was in Lusaka Province
which had a gender gap of 4.3%.

FIGURE 25: 3,500,000 25.0%

Active Mobile Money 3,000,000
Accounts Gender 20.0%
Composition as 2,500,000
at end 2022 15.0%
2,000,000
No. of Accounts

Gender Gap

1,500,000 10.0%
1,000,000
Total Active 5.0%
MM Accounts 500,000
Total Active Male
MM Accounts - 0.0%
Total Active Female
ak
a l t al er
n
er
n
er
n rn ula tern nga
s be tr h st st rthe ap i
MM Accounts
Lu er Ce
n
ut a e es ch
Gender Gap pp So E - w No Lu W Mu
Co rt
h
Source: Mobile Money No
Service Providers

Youth-owned Mobile Money wallets stood at 59.7% of the total active Mobile Money wallets at
the end of 2022. Of these 54.4% and 45.6% represented male and female youth-owned mobile
money wallets, respectively. This represented an overall youth gender gap of 8.9%.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 21
 FIGURE 26:
Registered Youth-Based
4,500,000 25.0%
Mobile Money Accounts
4,000,000
Gender Composition as 20.0%
3,500,000

No. of Accounts
at end 2022
3,000,000

Gender Gap
Total Registered 2,500,000 15.0%
Mobile Money (MM) 2,000,000
accounts 10.0%
Total Registered Female
1,500,000
Youth MM accounts 1,000,000 5.0%
Total Registered Youths 500,000
Mobile Money (MM) - 0.0%
accounts
ak
a l t al er
n
er
n
er
n rn ula tern nga
Gender Gap s be tr h st st rthe ap i
Lu er Ce
n
ut a e es ch
Total Male Youth pp So E - w No Lu W Mu
Registered MM Co rt
h
accounts No
Source: Mobile Money
Service Providers

FIGURE 27: 3,500,000 20.0%

Active Youth-Based 18.0%
3,000,000
Mobile Money 16.0%
Accounts Gender 2,500,000 14.0%
Composition as at 2,000,000 12.0%
No. of Accounts

end 2022 10.0%

Gender Gap
1,500,000 8.0%
Sum of No. of Active
Wallet Subscribers 1,000,000 6.0%
90 days Total 4.0%
500,000 2.0%
Total Gender Gap % on
active Accounts (Youths) - 0.0%
Sum of Total Active
ak
a lt al er
n rn ern ern ula rn ga
Youth MM Account s r be n tr h s te s t t h p s te hin
Lu pe Ce ut Ea -we r
Lu
a e
W Mu
c
Holders p So No
Source: Mobile Money Co r th
Service Providers No

5.2.5 National Financial Switch

The value and volume of transactions processed on the National Financial Switch (NFS)
increased by 161.5% to K44.6 billion (2021: K17.1 billion) and 143.5% to 61,396,288 (2021:
25,215,996) as shown in Figure 28. The increase in both values and volumes was mainly on
account of increased usage of mobile payments as result of the introduction of additional mobile
payments use cases on the NFS and the continued adoption of DFS.

FIGURE 28: 50 70,000,000

NFS Volumes and 60,000,000
Values (2018 to 2022) 40
Values K' billion

50,000,000
Volumes

30 40,000,000
20 30,000,000
20,000,000
Values (LHS) 10
10,000,000
Volumes (RHS)
0 -
Source: Bank of Zambia 2018 2019 2020 2021 2022

22
[Link] Automated Teller Machine (ATM) Transactions on the NFS

The value of ATM transactions processed on the NFS increased by 6.4% to K7.0 billion (2021:
K6.6 billion). The volumes on the other hand reduced by 1.1% to 4,111,682 (2021: 4,157,561) as
shown in Figure 29.

FIGURE 29: 8.0 4,500,000

NFS ATM Volumes 7.0 4,000,000
and Values
6.0 3,500,000
(2018 to 2022)
3,000,000
5.0

Volumes
K 'Billion
2,500,000
4.0
2,000,000
3.0
1,500,000
2.0 1,000,000
1.0 500,000
Values (LHS) - -
Volumes (RHS) 2018 2019 2020 2021 2022
Note: ATM Transactions in 2018 are only for one quarter-when the stream was introduced on the
Source: Bank of Zambia NFS

[Link] Point of Sale (POS) Transactions on the NFS

The value and volume of POS transactions processed on the NFS increased by 24.5% to K6.5
billion (2021: K5.2 billion) and 24.8% to 10,385,564 (2021: 8,319,041) as shown in Figure 30.

FIGURE 30: 7 12,000,000

NFS POS Volumes and 6 10,000,000
Values (2019 to 2022)
Values K' Billion

5
8,000,000

Volumes
4
6,000,000
3
4,000,000
2
1 2,000,000
Values (LHS)
0 -
Volumes (RHS) 2019 2020 2021 2022
Note: ATM Transactions in 2018 are only for one quarter-when the stream was introduced on the
Source: Bank of Zambia NFS

[Link] Mobile Money Transactions on the NFS

The value and volume of Mobile transactions processed on the NFS increased by 488.9% to K
31.1 billion (2021: K 5.3 billion) and 143.5% to 46,899,042 (2021: 12,739,394) as shown in
Figure 31. The increase in mobile payments was on account of continued adoption of DFS.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 23
 35 50,000,000
FIGURE 31:
NFS Mobile Payment 45,000,000
30
Volumes and Values 40,000,000
(2020 to 2022) 25 35,000,000

Values K' Billion

20 30,000,000

Volume
25,000,000
15 20,000,000
10 15,000,000
10,000,000
5
Values (LHS) 5,000,000
Volumes (RHS) 0 0
2020 2021 2022
Source: Bank of Zambia Note: POS- Transactions in 2019 are only for one quarter when the stream was introduced on the NFS

[Link] Status of NFS use cases

As at end of 2022, there were a total of 28 participants on the National Financial Switch (NFS)
with 18 live on ATM, 17 live on POS and 23 live on E-Money. The E-Money use cases implemented
by participants in Production/Pilot were as tabulated below:

TABLE 10: STATUS OF NFS USE CASES AS AT 31 DECEMBER 2022

Use Case Production Pilot UAT Total
Bank to Wallet 23 0 1 24
Wallet to Bank 21 2 1 24
Bank to Bank 16 0 1 17
ATM Cash Out 15 2 2 19
Agent Cash Out 11 0 1 12
Wallet to Wallet 10 1 2 13
Source: Zambia Electronic Clearing House Limited

5.3 Regional Cross Border Payment Systems

Regional Cross Border payments constituted payments made through the SADC Real Time
Gross Settlement System (SADC-RTGS) and the COMESA Regional Electronic Payments and
Settlement System (REPSS).

5.3.1 SADC RTGS

In 2022, the value and volume of payments processed on the SADC Real Time Gross Settlement
System (SADC-RTGS) by Zambian commercial banks increased by 163.8% and 68.0% to ZAR 9.9
billion (2021: ZAR 5.9 billion) and 39,820 (2021: 15,095) respectively as depicted in Table 11.
This was mainly due to the recovery of trade between South Africa and Zambia as well as the
onboarding of one Zambian Bank on the SADC-RTGS.

24
 TABLE 13: SADC-RTGS TRANSACTIONS (2018 TO 2022)
Year Values (ZAR' million) Volumes
Payments Receipts SADC RTGS Payments Receipts SADC RTGS
(Zambia) (Zambia) Overall (Zambia) (Zambia) Overall
(Zambia) (Zambia)
2018 5,723.90 5,716.00 1,272,358.50 20,008 6,942 348,620
2019 6,884.70 6,818.80 1,228,662.10 17,330 6,368 347,850
2020 5,240.80 5,356.10 1,252,589.80 13,703 6,355 343,659
2021 5,688.40 5,432.10 1,240,084.10 21,716 6,946 313,790
2022 9,919.27 9,743.53 1,691,532.45 39,820 8,836 432,496
Source: South African Reserve Bank

The trends in the value and volumes of SADC RTGS transactions are depicted in Figures 32 and
33, respectively.

FIGURE 32: 20.00

Values of SADC-RTGS
(Payments and Receipts for Zambia)

18.00 2,200.00
Transactions
16.00

(SADC-RTGS Overall)
Billion Rands
14.00 1,700.00
Billion Rands

12.00
10.00 1,200.00
8.00
6.00 700.00
Payments (Zambia)
Receipts (Zambia) 4.00
SADC-RTGS Overall 2.00 200.00
2018 2019 2020 2021 2022
Source: South African
Reserve Bank

FIGURE 33: 50,000 500,000

Volumes of SADC-RTGS
45,000 450,000
Transactions
(Payments and Receipts for Zambia)

40,000 400,000
(for SADC-RTGS Overall)
No. of transactions
35,000
No. of transactions

350,000
30,000
300,000
25,000
250,000
20,000
200,000
15,000
Payments (Zambia)
Receipts (Zambia) 10,000 150,000
SADC-RTGS Overall 100,000
5,000
Source: South African 0 50,000
Reserve Bank 2018 2,019 2020 2021 2022

5.3.2 COMESA REPSS

The value and volume of transactions received by Zambian banks on the COMESA Regional
Electronic Payments and Settlement System (REPSS) decreased to USD 11.8 million (2021: USD
14.7 million) and 111 transactions (2021: 121). There were no payments made from Zambia on
this platform.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 25
5.4 Currency In Circulation
Currency in circulation grew by 8.9 % to K14.6 billion in 2022 as depicted in Figure 34. The
increase in currency demand, particularly in the second quarter, was mainly on account of
payments related to crop marketing and social cash transfer.

FIGURE 34: 16
Currency in Circulation 15
2018 – 2022 14
13
12
11
K' billion 10
9
8
7
6
5
4
3
Apr-19

Apr-20

Apr-21

Apr-22
Feb-19

Feb-20

Feb-21

Feb-22
Jun-19

Jun-20

Jun-21

Jun-22
Dec-18

Dec-19

Dec-20

Dec-21

Dec-22
Oct-19

Oct-20

Oct-21

Oct-22
Aug-19

Aug-20

Aug-21

Aug-22
Source: Bank of Zambia

Table 12 below shows the breakdown of the total currency in circulation. The bulk of the
currency was in banknotes accounting for 98.4 % (K14.4 billion) of the outstanding stock.

TABLE 12: CURRENCY IN CIRCULATION, 2020 – 2022

Values (ZMW) Pieces
2020 2021 2022 2020 2021 2022
Banknotes
K100 8,913,139,700 8,679,596,100 9,851,003,950 89,131,397 86,795,961 98,510,039
K50 2,368,547,250 3,447,834,550 3,541,433,550 47,370,945 68,956,691 70,828,671
K20 501,754,540 719,089,420 613,346,780 25,087,727 35,954,471 30,667,339
K10 163,774,310 214,661,580 206,088,030 16,377,431 21,466,158 20,608,803
K5 99,656,335 122,235,765 148,614,770 19,931,267 24,447,153 29,722,954
K2 49,503,319 64,088,208 51,406,212 24,751,659 32,044,104 25,702,606
Coins
KI 115,438,992 122,786,488 140,361,992 115,438,992 122,786,488 140,361,992
50N 67,238,928 70,279,428 79,874,429 134,477,856 140,558,856 159,748,858
10N 8,685,472 8,685,472 8,688,072 86,854,723 86,854,723 86,880,724
5N 3,723,059 3,723,059 3,737,759 74,461,189 74,461,189 74,755,189
Total 12,291,461,906 13,452,980,071 14,644,554,569 633,883,187 694,325,794 737,787,175
Source: Bank of Zambia

5.4.1 New Currency Issued into Circulation

In 2022, the Bank issued 150.5 million (2021:193.4 million) pieces of mint banknotes and coins
into circulation, valued at K3.9 billion (2021: K5.5 billion) as shown in Figure 35 and Table 13.
Most of the currency issued was in high value banknotes: K100 and K50, which accounted for
59.6% and 25.1%, respectively. The middle value (K20 and K10) and low value (K5 and K2)
banknotes accounted for 14.7 % while coins accounted for only 0.6 % of the currency issued.
(Figure 33 and Table 13)

26
 FIGURE 35: 3.0 60.0
New Currency issued
2.5 50.0
into Circulation

Value in K'billions

Pieces (millions)
2021 – 2022 2.0 40.0

1.5 30.0
Values 2021 1.0 20.0
Values 2022
Pieces 2021 0.5 10.0
Pieces 2022
0.0 0.0
Source: Bank of Zambia K100 K50 K20 K10 K5 K2 K1 50N 10N 5N

TABLE 13: NEW CURRENCY ISSUED 2020 – 2022

Values (ZMW) Pieces
2020 2021 2022 2020 2021 2022
K100 5,954,000,000 1,713,000,000 2,348,900,000 59,540,000 17,130,000 23,489,000
K50 1,690,000,000 2,537,400,000 990,550,000 33,800,000 50,748,000 19,811,000
K20 692,390,000 831,500,000 256,120,000 34,619,500 41,575,000 12,806,000
K10 163,450,000 224,270,000 140,100,000 16,345,000 22,427,000 14,010,000
K5 89,410,000 101,060,000 128,805,000 17,882,000 20,212,000 25,761,000
K2 55,272,000 60,434,000 54,462,000 27,636,000 30,217,000 27,231,000
K1 5,822,000 6,638,000 17,052,000 5,822,000 6,638,000 17,052,000
50N 4,390,000 2,214,000 5,171,000 8,780,000 4,428,000 10,342,000
10N 0 0 2,800 0 0 28,000
5N 0 0 800 0 0 16,000
Total 8,654,734,000 5,476,516,000 3,941,163,600 204,424,500 193,375,000 150,546,000
Source: Bank of Zambia

5.4.2 Withdrawal of Un it Banknotes

The Bank withdrew a total of 118.1 million (2021: 102.7 million) pieces of un it banknotes from
circulation in 2022 valued at K2.8 billion (2021: K2.7 billion). The bulk of the currency
withdrawn in pieces (92.0 %) was in K50 to K2 denominations as depicted Figure 36 and Table
14). These notes are heavily used and therefore wear out or become un it for circulation at a
faster rate than the K100 note denomination.

FIGURE 36: 1.2 35.0

Currency Withdrawn
from Circulation, 1.0 30.0
2021 – 2022 25.0
Value in K'billions

Pieces (millions)

0.8
20.0
0.6
15.0
Value 2021 0.4
10.0
Value 2022
0.2 5.0
Pieces 2021
Pieces 2022
0.0 0.0
Source: Bank of Zambia K100 K50 K20 K10 K5 K2

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 27
 TABLE 14: CURRENCY WITHDRAWN FROM CIRCULATION, 2020 - 2022
Values (ZMW) Pieces
2020 2021 2022 2020 2021 2022
K100 3,167.709,800 1,012,193.700 960,400,000 31,677,098 10,121,937 9,604,000
K50 1,954,084,900 935,440,025 946,500,000 41,338,633 18,708,801 18,930,000
K20 482,465,720 446,550,260 600,590,000 24,123,286 22,327,513 30,029,500
K10 157,440,000 149,650,050 180,280,000 15,744,000 14,965,005 18,028,000
K5 100,715,500 78,662,500 84,550,000 20,143,100 15,732,500 16,910,000
K2 41,353,000 41,654,006 49,290,000 20,676,500 20,827,003 24,645,000
Total 5,903,768,920 2,664,150,541 2,821,610,000 153,702,617 102,682,759 118,146,500
Source: Bank of Zambia

For further trends of the various payment streams, including currency in circulation, during the
period 2012 to 2022, see Appendix 1.

5.5 Financial Inclusion

During the year 2022, the Bank continued its efforts of encouraging the adoption and usage of
DFS. To this end, the Bank in collaboration with stakeholders undertook DFS awareness
campaigns in all the ten provinces of Zambia, among other activities. The campaigns were
targeted at enhancing the awareness of DFS safeguards among users, educating members of the
public on common frauds/safety tips and creating awareness on risks associated with pre-
registered SIM cards. In addition, the Bank in collaboration with Financial Sector Deepening
Zambia (FSDZ) conducted inancial education sensitisation campaigns in major local languages
which were delivered through drama programs.

To compliment the awareness efforts, the Bank launched the DFS 'Go Cashless' awareness
campaigns in November 2022 to promote the usage of DFS and to sensitise members of the
public on the associated risks and safeguards.

The campaigns were conducted through roadshows and digital and electronic channels such as
radio, TV, billboards, and social media platforms. These efforts signi icantly contributed to the
increased access to and usage of DFS by the public. This was evidenced by the number of active
mobile money subscribers increased by 14.0% to 11,246,686 (2021: 9,867,409).

5.6 Consumer Protection

In 2022 the Bank continued to engage the PSPs to ensure compliance with the Customer
Complaints Handling and Resolution Directives of 2020 which provide for the following:

Ÿ Mandates PSPs to have effective Internal Dispute Resolution mechanisms in place;

Ÿ Provides for a reporting framework and guidelines to PSPs on both Internal and External
Dispute Resolution;
Ÿ Requires PSPs to incorporate reported /analysed data in product/service improvements;
Ÿ Mandate PSPs to develop strong internal complaint management systems; and
Ÿ Prescribes reasonable timelines for resolution of customer complaints.

28
6.0 CONCLUSION AND OUTLOOK FOR 2023

In 2023, the Bank will continue to focus on its core mandate of ensuring Financial Stability and
Financial Inclusion. In line with its strategic objectives, the Bank will continue to implement
policies that support growth, modernisation, safety and ef iciency of payment systems in
Zambia. Key trends that the Bank will be monitoring and closely following include the continued
innovation in the payment systems space and the global use of non-card-based products and
services. The Bank will also continue to monitor developments in the market to enhance the
resilience of the payments ecosystem, safeguard public interest and support innovation.

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 29
APPENDICES: PAYMENT SYSTEMS STATISTICS
Appendix I: Consolidated Statistics
CURRENCY IN CIRCULATION (2012 – 2022)
Year Currency in Circulation (K 'million)
2012 3,841.7
2013 4,600.8
2014 5,727.0
2015 6.347.1
2016 6,451.5
2017 7,315.3
2018 8,194.5
2019 8,526.6
2020 12,291.5
2021 13,452.9
2022 14,644.5

VALUES OF SYSTEMICALLY IMPORTANT PAYMENT SYSTEMS (SIPS) (2012 – 2022)

Year ZIPSS (K 'million) Cheques (K 'million) EFTs (K 'million)
2012 388,322.5 30,787.1 12,750.7
2013 528,950.7 38,011.0 17,104.24
2014 657,203.2 39,185.3 20,908.1
2015 887,544.4 37,958.9 21,829.2
2016 723.489.3 35,530.2 24,451.1
2017 799,745.0 21,075.6 38,863.6
2018 968,306.0 12,417.0 59,689.0
2019 975,283.0 11,206.9 67,812.8
2020 1,053,189.4 9,295.4 78,017.4
2021 1,488,147.0 8,758.00 98,789.0
2022 2,185,143.2 8,502.8 115,247.9

VOLUMES OF SYSTEMICALLY IMPORTANT PAYMENT SYSTEMS (SIPS) - (2012–2022)

Year ZIPSS Cheques EFTs
2012 240,564 2,800,759 4,027,061
2013 294,503 3,200,202 4,643,599
2014 319,836 3,184,446 4,955,572
2015 374,661 3,045,211 5,171,982
2016 388,176 2,807,390 5,297,462
2017 493,964 2,346,707 5,895,397
2018 573,071 2,040,530 6,952,305
2019 607,114 1,794,631 7,800,720
2020 708,946 1,401,153 8,181,743
2021 895,051 1,222,608 8,570,230
2022 1,165,531 1,255,734 9,403,971

30
AUTOMATED TELLER MACHINES AND CARDS (2012 – 2022)
Year No. of Automated No. of Cards ATM Transaction ATM Transaction
Teller Machines (ATMs) Values (K 'million) Volumes
2012 643 3,227,181 18,134.1 34,152,340
2013 744 3,363,662 21,855.4 38,152,320
2014 896 3,994,592 28,403.7 43,926,555
2015 1,000 4,244,344 32,787.2 46,790,504
2016 1,045 5,365,835 38,066.4 47,081,469
2017 1,066 5,249,103 42,113.7 49,726,580
2018 1,104 3,915,905 45,582.5 44,726,867
2019 1,006 3,691,488 48,054.9 41,773,995
2020 1,032 3,369,505 50,124.8 37,051,708
2021 995 3,332,285 57,686.8 37,189,792
2022 989 3,086,693 59,397.4 33,012,608

POINTS OF SALE MACHINES (2012 – 2022)

Year No. of Point of Sale Values of PoS Volumes of PoS
(PoS) Machines Transactions (K ‘million) Transactions
2012 2,025 790.6 1,677,179
2013 2,578 885.3 1,983,089
2014 3,266 1,551.8 2,937,453
2015 6,915 3,015.4 5,043,801
2016 9,356 4,948.4 8,103,127
2017 12,522 8,008.2 12,193,060
2018 13,090 13,459.3 18,409,724
2019 17,795 20,094.8 26,942,944
2020 22,822 35,234.9 33,981,488
2021 29,238 61,476.8 45,610,803
2022 39,159 111,356.6 60,141,253

REMITTANCES (2012 – 2022)

Year Remittances into Zambia Remittances out of Zambia Local Remittances Total Remittances
Volume Value (K'm) Volume Value (K'm) Volume Value (K'm) Volume Value (K'm)
2012 261,330 368.8 233,729 399.9 1,314,026 457.8 1,809,085 1,226.5
2013 278,972 413.5 246,543 480.3 3,980,145 897.0 4,505,660 1,790.8
2014 297,135 462.6 274,168 545.8 9,484,650 1,559.6 10,055,953 2,568.0
2015 342,273 656.2 287,386 625.6 24,835,333 3,409.3 25,464,992 4,691.1
2016 370,466 794.8 249,488 664.9 47,111,023 6,369.6 47,730,977 7,829.3
2017 434,122 913.0 298,978 870.9 67,761,202 10,336.1 68,494,302 12,120.0
2018 502,368 1,144.5 341,474 1,009.0 303,728,843 45,539.5 304,572,685 47,693.0
2019 691,617 1,617.5 342,433 1,096.0 469,416,539 82,109.6 470,450,589 84,823.2
2020 828,108 2,473.4 402,541 1,174.8 572,655,310 113,453.6 573,885,959 117,101.8
2021 1,522,282 4,795.5 563,282 1,693.8 936,250,571 186,581.5 938,336,135 193,070.8
2022 1,602,602 4,117.8 869,464 1,888.9 1,152,518,27 241,232.4 1,154,990,339 247,239.0
3

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 31
MOBILE PAYMENTS (2012 – 2022)
Year Value (K' million) Volume
2012 1,163.6 17,430,411
2013 957.3 24,412,326
2014 1,574.4 35,457,948
2015 2,068.4 62,491,896
2016 3,561.1 105,934,181
2017 7,287.7 172,429,911
2018 22,191.6 303,955,243
2019 49,353.1 552,475,284
2020 105,815.1 750,514,157
2021 169,402.4 834,121,817
2022 295,828.1 1,581,355,224

32
Appendix II: Designated Entities as at 31 December 2022
DESIGNATEDPAYMENTSYSTEMS
No. Operator Institution Payment system(s) Date of Physical Address
designated to Designation
participate on
1 Bank of Zambia ZIPSS/RTGS Apr-08 Head Of ice, Cairo Road, Bank square, P O Box 30080
2 Zambia Electronic CICS/DDACC Clearing Apr-08 COMESA House, Ben Bella Rd, Lusaka, Zambia
Clearing House LTD
3 ZamLink (Z) eSwitch Switching services Apr-08 Zambia Red Cross Society Building, 2837 Los Angeles Boulevard, Longacres,
Zambia LTD P.O Box 38138, Lusaka, Zambia
4 Cellulant Switching services May-08 Cellulant Zambia Limited, P.O. Stand no. 4658/A Chikwa road, Ridgeway,
Lusaka
5 Financial Transaction Switching Apr-12 Radian Retail Park, 8357-Great North Road, P.O. Box 3679, Lusaka, Zambia
Services Zambia LTD
6 LinkNet Zambia LTD Payment System Jan-19 LinkNet Zambia LTD, Premium House 4th Floor, Mboya Road, P.O. Box 37330
7 Real Pay Zambia LTD Payment System - May-19 Real Pay Zambia Limited, Plot Number 2374 - Unit B, Counting House
Direct Debit Solution/ Square, Thabo Mbeki Road, P.O. Box 35139
Online Payment Card
Acceptance
8 NetOne Payment Payment System Sep-19 NetOne Payment Systems Limited, P.O. Box 37680, Plot No. 12553 Zambezi
Systems LTD, Road, Roma
9 PayNow Zambia LTD Payment System Sep-19 PayNow Zambia Limited, 2nd Floor, Regus Arcades, Great East Road,
10 Digital Shared Services Payment System Dec-19 Digital Shared Services Limited, Garden City Mall Of ice Park, Unit B6, Great
LTD East Road, Waterfalls
11 Zynle Technologies Payment System Jun-20 Stand No. 190003, Olympia, Lusaka
LTD
12 Probase LTD Payment System Aug-20 ZCCM-IH Of ice Park, Stand 16806, Alick Nkhata Road
13 Hobbiton Technologies Payment Aggregation Apr-21 2287 Corner of Lagos and Lubuto Road
LTD
14 Tumeny Payments LTD Payment Aggregation Dec-21 Plot 26454 Kasama Road Lusaka
15 Primenet Solutions Payment Aggregation Jul-22 No 191B Chindo Road Kabulonga
LTD
16 Finclude Zambia LTD Payment Aggregation Sep-22 Plot No. 128/70, Off Palm Drive, Chelstone
DESIGNATED PAYMENT SYSTEM PARTICIPANTS
No. Name of Payment Payment systems Date of Physical Address
System Designated designated to Designation
to Participate participate on
1 Atlas Mara CICS, DDACC & Apr-08 Plot 746B, Atlas Mara House, Corner Church & Nasser Road, P.O. Box 39501
ZIPSS/RTGS Ridgeway
2 Bank Of China CICS, DDACC & Apr-08 Plot No. 2339, Kabelenga Road, P.O. Box 34550
ZIPSS/RTGS
3 Absa Bank CICS, DDACC & Apr-08 Plot No. 4644 Elunda Park, Corner Tito Road & Nasser Road, Private bag
ZIPSS/RTGS E308, Lusaka
4 Citibank CICS, DDACC & Apr-08 Citibank house, Plot No. 4646, Addis Ababa Roundabout, Corner Chikwa /
ZIPSS/RTGS Nasser Roads, P.O. Box 30037
5 First Alliance Bank CICS, DDACC & Apr-08 Plot No. 627, Alliance House Cairo Road, P.O. Box 33959
ZIPSS/RTGS
6 Indo Zambia Bank CICS, DDACC & Apr-08 Plot No. 6907, Cairo Road, P.O. Box 35411, Lusaka
ZIPSS/RTGS
7 Investrust Bank CICS, DDACC & Apr-08 Plot No. 190286, Ody's Park, Great East Road, P.O. Box 32344, Lusaka
ZIPSS/RTGS
8 Stanbic Bank CICS, DDACC & Apr-08 Plot No. 2375, Addis Ababa Drive, Rhodespark, P.O. Box 31955, Lusaka
ZIPSS/RTGS
9 Standard Chartered CICS, DDACC & Apr-08 Plot 108, Lusaka Chartered House Cairo Road
Bank ZIPSS/RTGS
10 Zanaco CICS, DDACC & Apr-08 Plot No. 33454, Cairo Road, P.O. Box 33611
ZIPSS/RTGS
11 Access Bank CICS, DDACC & Oct-08 Plot 682, Cairo Road Northend, Lusaka
ZIPSS/RTGS
12 First National Bank CICS, DDACC & Jun-09 Stand No. 22768, Corner Great East / Thabo Mbeki Roads, P.O. Box 36187,
ZIPSS/RTGS Lusaka
13 Ecobank CICS, DDACC & Dec-09 Stand No. 22768, Corner Great East / Thabo Mbeki Roads, P.O. Box 30705,
ZIPSS/RTGS Lusaka

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 33
Appendix II: Designated Entities as at 31 December 2022 (Continued)
DESIGNATED PAYMENT SYSTEM PARTICIPANTS
No. Name of Payment Payment systems Date of Physical Address
System Designated designated to Designation
to Participate participate on
14 United Bank For Africa CICS, DDACC & Mar-10 Stand No. 22768, Corner Great East / Thabo Mbeki Roads
ZIPSS/RTGS
15 First Capital Bank CICS, DDACC & May-11 Kwacha Pension House Ground loor, plot No. 4604, Tito Rd of Church Rd
ZIPSS/RTGS
16 Ab Bank CICS, DDACC & Aug-11 Plot No. 7393, Chainda Place, Off Cairo Road, P.O. Box 38173, Lusaka, Zambia
ZIPSS/RTGS
17 Zambia Industrial and CICS, DDACC & Oct-18 Farmers House, Central Park, Corner of Church Road and Cairo Road, P.O.
Commercial Bank ZIPSS/RTGS Box 30228, Lusaka
DESIGNATED PAYMENT SYSTEM BUSINESSES
No. Payment Systems Type of business Date of Physical Address
Businesses designated to Designation
operate
1 Necor Zambia LTD money transmission Jul-08 Plot 11456, NECOR House, Corner of Lubambe & Mwembeshi Road,
services Northmead
2 Zoona Zambia LTD Mobile Payments Sep-08 Plot No. 1 Chila Rd, Kabulonga, Lusaka, Zambia.
(Mobile Payment
services and money
transmission services)
3 Zambia Postal Western Union Sep-08 Corner of Moffatt & Broadway Provident House, P.O. Box 71845, Ndola
Services LTD International Money
(Zampost) Transfer (money
transmission
services), Local Money
Transfer (money
transmission services)
4 African Banking Money Gram Sep-08 Plot 746B, Corner, Church/Nasser Roads P. O. Box 39501 LUSAKA
Corporation Zambia International Money
LTD Transfer (money
transmission services)
5 Zambia National Money Gram Sep-08 Cairo Rd, P.O. Box 32111, Lusaka, Zambia
Commercial Bank International Money
(Zanaco) Transfer (money
transmission services)
6 Cactus Money Western Union Sep-08 Shop no. 3 Luangwa house, Cairo Road, opposite building society, Lusaka,
Transfers Limited International Money Zambia
Transfer (money
transmission services)
7 Roraima Payment money transmission Oct-08 Plot 6054, Sibweni Road, Northmead, Lusaka
Systems Limited services
8 Standard Chartered Western Union Oct-08 Stand No. 4642, Corner of Mwaimwena Road and Addis Ababa Drive
Bank International Money P O Box 32238
Transfer (money
transmission services)
9 Stanbic Bank Money Gram Jan-09 Plot No. 2375, Addis Ababa Drive, Rhodespark, Lusaka
International Money
Transfer (money
transmission services)
10 National Savings and Proprietary Money Jul-09 P O Box 30067, Savers House Plot NO. 248B, Cairo Road, Lusaka, Zambia
Credit Bank Transfer (money
transmission services)
11 Investrust Bank Money Gram Jul-09 Ody's Building, Great East Rd, P.O. Box 32344, Lusaka, Zambia
International Money
Transfer (money
transmission services)
12 Access Bank Western Union Jul-09 Plot NO. 682, Cairo Rd, P.O. Box 35273, Lusaka, Zambia
International Money
Transfer (money
transmission services)

34
Appendix II: Designated Entities as at 31 December 2022 (Continued)
DESIGNATED PAYMENT SYSTEM BUSINESSES
No. Payment Systems Type of business Date of Physical Address
Businesses designated to Designation
operate
13 Postdotnet Western Union Oct-09 Suite 106, Foxdale courts, Zambezi Road, Roma, Lusaka Zambia
International Money
Transfer (money
transmission services)
15 Bayport Mobile Payments Dec-09 Plot No. 68, Bayport House, Independence Avenue, P.O. Box 33819, Lusaka,
Solutions (MPS) Lusaka
Money Transfer
(money transmission
services)
16 United Bank of Africa Money Gram Dec-09 Stand No. 22768, Acacia Park CORNER of Great East Rd & Thabo Mbeki Rd,
International Money P.O box 36794, Lusaka, Zambia
Transfer (money
transmission services)
17 Ecobank Western Union Dec-09 Plot NO. 22768 Acacia Park, CORNER of Great East Rd & Thabo Mbeki Rd,
International and Lusaka, Zambia
Rapid Transfer Money
Transfer (money
transmission services)
18 Airtel Mobile Mobile Payments Mar-11 Airtel House, plot No. 2375 CORNER of Addis Ababa & Great East Rd, Box
Commerce Zambia Ltd (Mobile Payment 320001, Lusaka, Zambia
services and money
transmission services)
19 First Capital Bank RIA International May-11 Kwacha Pension House Ground loor, plot No. 4604, Tito Rd of Church Rd
Transfers (money
transmission services)
20 Ab Bank RIA International Aug-11 Plot No. 7393, Chainda Place, Off Cairo Road, P.O. Box 38173, Lusaka, Zambia
Transfers (money
transmission services)
21 MTN Mobile Money Mobile Payments Jan-12 Plot no. A2/55//609 Zambezi Road, Roma, Lusaka.
Ltd (Mobile Payment
services and money
transmission services)
22 Kazang Spargris Mobile Money Mar-13 Shop NO. 3 Acacia Park, Arcades, Great East Road, Lusaka, Zambia
Zambia Ltd
23 Smartpay Mobile Payment Mar-13 Plot No. 9037 Buluwe Road, Woodlands P.O. Box 31514, Lusaka, Zambia
services
24 Zambia National Proprietary Money Dec-14 Century House, [Link] 30420, Lusaka, Zambia
Building Society Transfer (money
transmission services)
25 Madison Finance Mobile Payment Dec-14 Plot 1014 Evexia Building, Church Road, P.O. Box 34366, Lusaka, Zambia
services
26 Zamtel Mobile Money Mobile Payments Feb-15 Zambia Telecommunications Company Limited, Zamtel House, Corner of
LTD (Mobile Payment Church/ Chilubi road, P.O Box 37000, LUSAKA
services and money
transmission services)
27 Mukuru Money money transfer May-15 Mukuru Money Transfer, P.O Box 36038, Lusaka
Transfers
28 Speedpay Zambia E-Money issuance Sep-15 Nettcash Mobile Payments Limited, Villa 10 Cresta Golf View Grounds,
LTD Lusaka.
29 Broadpay Zambia Payment services Sep-15 BroadPay Zambia Limited, Corner of great east road and Katopola Roads,
LTD unique House, 1st loor Rhodespark, LUSAKA
Vending Technologies Payment services Sep-15 Vending Technologies Zambia Limited, P.O. Box 36730, Plot 55, Luwato road,
Zambia LTD Roma. LUSAKA
30 Cgrate Zambia LTD Payment services Mar-16 CGrate Zambia Limited, Plot 35214, Alick Nkhata road, Kalingalinga, Lusaka
31 Finca Zambia LTD Money Transfer Jul-17 FINCA Zambia Limited, Plot No. 609 Zambezi Road, Suite 111 Foxdale Court,
Services P.O. Box 50061, LUSAKA.
32 Virtual Space Zambia E-Money Issuance and Feb-18 Virtual Space Zambia Limited, Plot 5402, Los Angeles Road, Makeni, Lusaka
LTD Money Transfer
Services

NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 35
Appendix II: Designated Entities as at 31 December 2022 (Continued)
DESIGNATED PAYMENT SYSTEM BUSINESSES
No. Payment Systems Type of business Date of Physical Address
Businesses designated to Designation
operate
33 Zazu Africa LTD E-Money Sep-18 Zazu Africa Limited, Counting House, Unit C, Thabo Mbeki Road, Lusaka
Issuance/Pre-paid
Cards
34 Samafrica Online E-money issuer - web Jan-19 SamAfrica Online Zambia Limited, Unit B, Jacaranda Mall, P.O. Box 71451,
Zambia LTD based Ndola
35 Lendmepay Zambia E-money issuer Oct-19 33 Mutende Road, Woodlands, LUSAKA
LTD Opposite Quorum
36 Billford Zambia LTD Payment services Jun-20 C/O Bongohive Technology and Innovation Hub, Plot No. 1694 8B, Thabo
Mbeki Road, Lusaka
37 MyPay Zambia LTD E-money issuer Aug-20 4th Floor-Finance House, Heroes Place, Cairo Road, P.O. Box 34376, Lusaka
38 Serengeti E-money issuer, Sep-20 Stand No. 4897 Los Angeles Boulevard, 2nd Floor Of ice Complex, Longacres,
Technologies LTD Payment services Lusaka
39 Redstone Zambia LTD E-money issuer, Dec-20 Plot 106, Acacia Avenue, Roma Park, Lusaka
Payment services
40 Instapay Africorp LTD Money Remittance Feb-21 5 Mwaimwena Road, Rhodes Park, P.O. Box 50116 Lusaka, Zambia
Services
41 Paycode Zambia LTD E-money Issuer Apr-21 86 Independence Avenue, P.O. Box 32115, LUSAKA
42 Nanosoft Code E-money Issuer Jun-21 Plot NO. 2204, Nationalist Road, Libala South, Lusaka
Zambia LTD
43 Smile in E-money Issuer Jul-22 2nd Floor Blue House, Arcades, Great East Road, Lusaka
Technologies LTD

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NATIONAL PAYMENT SYSTEMS IN ZAMBIA, ANNUAL REPORT FOR THE YEAR 2022 35