Over the past decade, Zambia has experienced a rapid expansion of fintech companies and the adoption of digital financial services. In 2023, the United Nations Capital Development Fund (UNCPF) identified 57 fintech companies operating in Zambia, more than double the 25 companies recorded in 2018 and highlighting the sector’s rapid growth.

Most Zambian fintech companies concentrate on three main verticals. The first category is technology enablement for financial institutions, where companies develop digital tools, platforms, and services that give banks, credit unions, payment processors, and other financial‑service providers the technical infrastructure they need to create, deliver, and manage modern financial products. Union54 exemplifies this vertical, providing card issuing services and operating the ChitChat conversational-payment app.

The second category is digital payments and mobile money. Companies in the space facilitate peer-to-peer (P2P) transfers, merchant acceptance, and cashout networks. Zoona is a relevant example, operating a mobile money network that serves more than 7 million customers;

The third area is digital lending. Companies in this vertical offer instant credit and loan-origination platforms. Lupiya illustrates this segment with its digital banking platform that offers digital payments, lending products, and embedded finance.

But a newer wave of innovators is expanding the Zambian fintech ecosystem beyond payments and credit by providing services including savings, microinsurance, and asset and wealth management. DigMo, for example, offers digital savings and financial planning products designed for low- and middle-income users; while Hobbiton Technologies creates software for insurance, capital markets, and payments.

Improved financial inclusion

The rapid growth of fintech has significantly expanded access to financial services across Zambia. According to the FinScope surveys, backed by the central bank, overall financial inclusion rose to 69.4 % in 2020, marking a 10.1 point increase from 2015 and a 31.4 point jump from 2009.

These gains were largely driven by fintech and money mobile solutions, which have proven far more effective at reaching excluded populations than traditional banking services. In 2022, fewer than 10 % of adults owned a traditional bank account, while almost half of the population held a mobile money account. This highlights how mobile money platforms are succeeding in bringing financial services to people historically outside the formal banking system.

The data show that mobile money, pension services, and insurance services, were the most rapidly adopted product categories. Between 2009 and 2020, mobile money penetration surged from virtually zero to 58.4%, making it the most prevalent financial product in Zambia and surpassing bank services, which stood at 20.7%.

During the same period, pension service coverage increased 5.4 points to 8.2%, and insurance services rose 5.1 points to 6.3%. These trends showcase how fintech innovations and mobile technology are reshaping Zambia’s financial landscape and fostering greater economic inclusion.

Factors driving the growth of fintech in Zambia

The UNCPF report highlights several key factors behind the rise of fintech in Zambia. First, regulators have enacted reforms that encourage innovation. The regulatory sandbox, for example, was launched in 2021 to allow fintech companies and innovators to test their innovations under regulatory supervision and with specific conditions to protect investors while clarifying legal and compliance requirements.

Additionally, the National Financial Inclusion Strategy (NFIS), implemented from 2017 to 2023, introduced critical regulatory frameworks and policy changes to support the growth of digital financial services, including promoting interoperability, eliminating agent exclusivity, implementing National Financial Switch.

Ecosystem facilitators, such as innovation and incubation hubs and development partners, have also played a critical role by offering expert business support services, mentorship, industry linkages, and seed capital. Notable organizations include BongoHive, a technology and innovation hub which supports promising startups by enhancing skills, strengthening networks, and facilitating collaboration; the Asikana Network, which promotes women’s participation in technology through free information and communication technology (ICT) training; and the Women’s Entrepreneurial Center of Resources, Education, Access, and Training for Economic Empowerment (WECREATE), which offers business training and financing opportunities for female entrepreneurs.

Finally, investor interest, though still modest compared to larger African markets, continues to grow. Just this week, digital bank Lupiya secured US$11.25 million in a Series A which it said it would use to broaden its product offering, strengthen its technology infrastructure, and support geographic expansion beyond Zambia and into Southern and East African markets.

Future outlook

Looking ahead, the Payments Association of Zambia (PAYZ) anticipates that mobile money will remain the backbone of the financial services in Zambia. In 2026, these platforms will continue to expand beyond P2P transfers to support a wider range of merchant and business payments, and value-added services such as savings, credit, and insurance. This evolution should further strengthen financial inclusion and bolster small and medium-sized enterprises (SMEs).

Interoperability will be another priority in 2026. By allowing consumers and businesses to transact seamlessly across banks, mobile money platforms, and point-of-sale (POS) systems, interoperability reduces friction, enhances convenience, and improves efficiency. This year, PAYZ expects interoperability to improve transaction efficiency, reduce costs for merchants and consumers, and enable more innovation through shared infrastructure.

However, rising transaction volumes will heighten cybersecurity risks will increase, putting fraud prevention and data protection as central priorities for the ecosystem. Continued regulatory development is also expected, with new frameworks set to support responsible innovation, encourage interoperability and collaboration, and promote inclusive growth.

This article first appeared on fintechnews.africa

Featured image: Edited by Fintech News Africa, based on images by pablographix and gnublin via Freepik