Several emerging trends and innovations affect Instant Payment Systems (IPS) inclusivity. They suggest opportunities for expanding IPS access and the use of instant payments. These trends play out at the market, system, and consumer levels.
IPS will enable the next cross-border play in Africa
Merchants selling across borders and emigrants sending remittances wish to avoid high costs and settlement delays in traditional channels. IPS-to-IPS links offer real-time, low-fee experiences. Charge less than money transfer operators and deliver instant, irrevocable funds to reduce costs and latency. Remove intermediaries to eliminate foreign exchange currency dependency, cutting costs and de-risking pressure. Provide universal access to counterparties under harmonized rules to expand market reach. Monetize message conversion, routing, and low-risk FX, and layer cross-border services to generate new revenue.
Consumer-protection frameworks tighten, led by APP fraud reimbursement rules
There is a sharp rise in authorized push payment (APP) fraud and high levels of end-user concern about fraud are causing regulators to shift liability to PSPs. Offer quick, automatic reimbursement to build user trust and boost IPS volumes. Split liability to incentivize fraud prevention. Create demand for shared fraud-intelligence hubs to catalyze data-sharing. Embrace third-party risk-management tools built on IPS rails.
IPS design gaps stall launches
Many live IPS process low volumes and values due to design and governance gaps, such as high or unclear transaction fees, partial or delayed participation, limited use-case coverage, weak trust architecture, and governance inertia. Rapidly digitalize low-value payments and increase daily active users to align pricing. Achieve full network effects and steeper volume curves to ensure universal participation. Create sticky, everyday relevance for consumers and small businesses to enable multi-use functionality. Increase user willingness for higher-value flows and attract key transfers to build visible trust. Roll out features and policies to keep IPS competitive.
QR code functionality is gaining traction
Growing smartphone adoption, expanding internet access, and reduced data costs present an opportunity to leverage QR codes for expanding IPS access, especially in retail and informal sectors. Design and introduce QR systems that enhance inclusivity by using merchant-presented QR codes with push payment functionality for real-time confirmations. Promote shared QR codes by embedding them within the IPS for an open, interoperable platform. Act as a QR issuer to lower entry barriers for acquirers. Offer flexible QR payloads to allow merchants to change providers while keeping payment methods consistent. Implement robust fraud management for stronger security through push-based methods and real-time analytics. Set zero or near-zero merchant fees to attract small merchants.
Development of consumer-facing solutions and applications
IPS are launching dedicated consumer-facing applications to build their brands and offer simple, convenient, and secure user experiences. Control the end-user experience to ensure service consistency and brand building. Provide a single access point to the IPS to facilitate unified market entry, enabling all PSPs to go live simultaneously. Allow users to link multiple accounts in one place to enhance accessibility, convenience, and control. Enable expanded financial services access, such as credit, savings, and insurance. Enable a wider range of financial service providers to participate in driving enhanced competition and innovation.
Free fee structures jumpstart adoption
Free or affordable fee structures can reduce the cost barrier of digital payments and encourage early adoption. Waive transaction fees, even temporarily, to increase uptake, making the service more accessible. Encourage initial trials and build user trust to foster greater financial inclusion and accelerate the shift from cash to digital payments.
Human-assisted channels are more essential for narrowing inclusivity gaps
Human-assisted channels like agent networks remain crucial for customer acquisition and serving underserved groups, especially first-time users and those who are less digitally confident. Innovate agent management and roles in the payments value chain to modernize agent models, including shared agent infrastructure models and agents-as-a-service offerings. Build dependable agent networks through improved selection, training, monitoring, incentives, and support, including credit-linked float management. Reconsider reducing IPS support for human-assisted channels.
End users embracing digital payments still live in a hybrid world
Despite growth in digital payments, consumers face constraints such as habit, infrastructure, and fractured markets that will keep even avid digital adopters in a hybrid payments world of cash and digital for the foreseeable future. Develop digital-analog approaches designed for less digitally or financially enabled groups to innovate hybrid approaches. Focus on providing convenient, easy, and safe options accessible with current tools, such as USSD-enabled options for basic phones, to serve customers where they are and foster loyalty for future transitions to app-enabled channels.
Negative experiences spread virally through social networks and discourage digital channel adoption
Negative perceptions of digital payments, driven by word-of-mouth about scams, fraud, and unsatisfactory issue resolution, deter potential users and erode trust. Provide information and skills for safe service use, fraud prevention, and clear grievance redressal. Fulfill or exceed regulatory mandates, enhance user experience, and promote customer care channels for quick issue resolution to strengthen consumer protection. Run regular fraud awareness campaigns and promote success stories to combat negative messaging and build trust.
Reference: AfricanendaSIIPSReport2025
