Namibians spend N$1.2 trillion in electronic payments
Namibians have made payments worth N$1.26 trillion with electronic payments compared to cash transactions of N$5.61 billion in one year.
The trend shows that Namibians are moving away from traditional cash payment methods and embracing digital forms of payments.
A Bank of Namibia report for 2024 shows that Electronic Fund Transfers (EFTs) were the dominant payment instrument used by Namibians.
Card payments and e-money followed, used to the value of N$199 billion and N$35.3 billion, respectively. The latter’s growth reflects the growing popularity of mobile money platforms such as eWallets, PayPulse and Nam-mic.
Cash was the least used form of payment in 2024 at N$5.61 billion, “reflecting a continued shift toward digital payment methods,” notes the report.
Currently, Namibia’s bank account ownership and digital payment usage surpasses the regional average for sub-Saharan Africa. Despite the shift towards digital payments, financial inclusion has been a challenge for Namibia, according to the International Monetary Fund’s high level summary technical assistance report.
“Limited accessibility to digital infrastructure in rural areas, high digital transaction costs, a strong preference for cash and low financial literacy continue to be significant barriers. While Namibia exceeds the regional average, financial inclusion remains a work in progress,” says the report.
AFRICAN DIGITAL PAYMENTS
A report by McKinsey and Company on the future of payments in Africa showed that the continent’s electronic-payments industry generated approximately N$432 billion in revenue, with about N$270 billion from domestic electronic payments.
This domestic revenue was generated by 47 billion individual transactions, totalling just over N$14.4 trillion.
The McKinsey report also predicts that South Africa will remain the largest e-payments market in Africa in 2025, generating N$90 billion in annual revenues. However, its overall share of the African market is expected to decrease.
According to the report, digital payment usage rates reach 95 to 98% of account owners in economies like Kenya and South Africa, with government payments, private sector wage payments and domestic remittances being key drivers.
