Instant Payments and Africa’s Shifting Regulatory Landscape

Payments are the heartbeat of our bank. In today’s digital economy, payments are no longer just transactions – they’re the pulse of progress. Across Africa, the instant payments landscape is evolving, bringing with it regulatory challenges that must be navigated.

The push for harmonisation across Africa’s financial systems is gaining momentum. The adoption of ISO 20022 enables richer data exchange, better analytics and improved client experiences. This standardisation is key to unlocking interoperability across borders and institutions.

Africa is witnessing the rise of regional payment schemes such as the East African Payment System (EAPS) and the Pan-African Payment and Settlement System (PAPSS). These initiatives aim to streamline cross-border transactions and reduce reliance on external clearing mechanisms. The shift from T+2 settlement cycles to real-time payments is reshaping the financial landscape. Examples like Kenya’s PesaLink and South Africa’s PayShap demonstrate the growing appetite for instant value transfer. This evolution demands robust infrastructure and agile regulatory frameworks.

Instant payments challenge traditional banking models, especially around cost structures and inclusivity. Banks must rethink their operating models to remain competitive while ensuring financial inclusion and affordability.

At Absa, we are innovating with repeat payments and cost step-down models to enhance client experience. Our focus is on delivering seamless, secure and scalable payment solutions that meet the evolving needs of our clients.

One of the biggest challenges is regulatory fragmentation across geographies. Differences in exchange controls and sanctions screening create complexity for banks operating across borders. Balancing speed with compliance is critical. As instant payments become the norm, banks must invest in real-time compliance tools and collaborate with regulators to ensure integrity without compromising agility.

Client experience is at the core of payment innovation. By leveraging data, automation and user-centric design, banks can deliver frictionless experiences that build trust and loyalty.

Africa’s payments landscape is undergoing a profound transformation. The shift to instant payments is not just a technological upgrade; it’s a redefinition of how value moves across borders, industries and communities. Yet, speed must be matched with scrutiny. As banks, regulators and businesses navigate fragmented compliance regimes, the challenge is to harmonise without compromising integrity. At Absa, we believe that the future of payments lies in balancing agility with accountability, where innovation meets regulation, and where every transaction builds trust across the continent.