Malawi’s financial landscape is undergoing a digital shift, with more people using online platforms to transact, latest data from the 2024 National Payments System Annual compiled by the Reserve Bank of Malawi (RBM) shows.
The report further shows that in the year under review, there was a 38.8 percent increase in transactions to 1.97 billion valued at K187 trillion.
The surge reflects the growing influence of digital financial services (DFS), improved interoperability through the National Switch and efforts to boost digital literacy, according to RBM.
The report further indicates that while transaction volumes soared, the average value of each transaction fell from K122 537.22 in 2023 to K95 010.86 in 2024, suggesting that consumers are increasingly using digital platforms for low-value, high-frequency transactions such as buying groceries, topping up airtime or sending small amounts of money to relatives.
“Mobile money volumes alone rose by 40.4 percent while values climbed 80.9 percent to K19.5 trillion, driven largely by airtime top-ups and cash-in/cash-out services, which together accounted for over 76 percent of mobile money transactions,” reads the report in part.
Scotland-based Malawians economist Velli Nyirongo said in an interview yesterday that the trend highlights both progress and limitations in the country’s financial inclusion journey.
He said: “A rise in low-value, frequent digital transactions show that more people are choosing quick, convenient financial services.
“This trend helps bring informal workers, such as street vendors and small farmers, into the digital economy. However, it may also lead to limited use of savings, credit, and investment tools, which are key for long-term economic stability.”
Despite increasing mobile money subscriptions, the number of active users fell with only 46.6 percent of subscribers being active in a 30-day period, down from 50.6 percent in 2023.
A similar pattern was observed among mobile money agents. While the total number rose by 48.4 percent to 491 591, activity rates slipped to 63.2 percent due to slower growth in active users relative to registrations.
Geographic and gender disparities remain pressing challenges, with the report showing that urban and semi-urban areas account for 75.7 percent of mobile money agents, leaving rural areas, home to over 80 percent of the country’s population, with just 24.3 percent coverage. On the gender front, 58.3 percent of mobile money users are male despite a slight improvement in female representation.
In 2024, Internet banking volumes rose by 51.9 percent, and values reached K13.7 trillion, with an average transaction size of K1.67 million, far exceeding those for mobile banking and mobile money.
On the other hand, the National Switch, a central platform for interoperable payments, processed 33.5 million transactions in 2024 worth K5 trillion, a rise of 151.8 percent in value, with instant fund transfers leading this growth, contributing nearly 80 percent of the total value.
PawaPay country manager Arthur Muyepa, whose firm is one of the country’s payment services providers, said in an interview yesterday that Fintech ecosystem is still at the development stage with some gaps in compatibility of systems though progress is being made.
