The payment landscape registered mixed fortunes in second quarter with transaction volumes increasing while the values dropped, a move experts say calls for promoting active use.
According to the National Payment Systems (NPS) report by the Reserve Bank of Malawi (RBM), volumes increased by 2.7 percent to 612.4 million transactions, while values decreased by 2.1 percent to K71 429.5 trillion from K72 985.1 trillion during the period under review.
The bank has since expressed surprise at the situation observing that the value should have increased considering that in the second quarter, trading of agricultural produce increases.
Reads the report in part: “Despite being the start of the agricultural trading season, which is traditionally linked to greater economic activities, the second quarter of 2025 registered varied performance in terms of both the volumes and values of various Digital Financial Services [DFS] payment channels.
“Resultantly, the average value of transactions decreased from K122, 440.0 to K116, 644.4. However, compared to a similar period in 2024, both the volume and value of transactions processed in the various payment streams increased by 32.6 percent and 48.3 percent, respectively.”
During the period under review, the volume of cheques decreased, though marginally by 0.03 percent to 144 944 whilst the corresponding value increased by 22.38 percent to K1.1 trillion.
The data show that there were 20.1 million registered subscribers as at June 30 2025 from 17.6 million during the previous quarter, although the 90-day activity rate for mobile money subscribers declined by 52.14 percent, down from 56.32 percent in March 2025.
“The decline in activity rates is concerning because it indicates that fewer registered mobile money users utilised the service during the period under review compared to the first quarter of 2025,” reads the report in part.
In an interview, information communications technology (ICT) expert Bram Fudzulani said there is need to promote active and productive usage.
He said: “The Infrastructure is available and resilient with more agents and more wallets, however, the report also shows clear constraints imposed by the challenging macroeconomic environment.
“For true financial inclusion, we must shift the focus from simply access to promoting active and productive use of digital financial services which requires a significant improvement in disposable income and overall macroeconomic stability.”
In a separate interview, financial technology expert and country manager of PawaPay Arthur Muyepa said the trend suggests that more people are embracing the use of payment platforms but in smaller payments.
This shows real progress in financial inclusion with more Malawians using digital platforms, for smaller, everyday payments while cheques are now mostly for big businesses and organisations,” he said.
Scotland-based Malawian economist Velli Nyirongo earlier said the trend highlights both progress and limitations in the country’s financial inclusion journey.
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.
