Fintech in Zambia Sees Rapid Expansion as Mobile Money Drives Financial Inclusion
Zambia’s fintech sector has grown sharply over the past decade, supported by rising adoption of digital financial services and a more enabling regulatory environment. According to a 2023 United Nations Capital Development Fund (UNCDF) study, the country had 57 fintech companies operating locally, more than double the 25 recorded in 2018. The increase reflects a broader shift in how Zambians access payments, savings, lending, and other financial services.
The market is still dominated by a few core segments. One major area is technology enablement for financial institutions, where firms build platforms and tools for banks, credit unions, payment processors, and other financial providers. Union54 is a notable example in this category, offering card issuing services and operating the ChitChat conversational payments app.
Digital payments and mobile money remain another key pillar of the ecosystem. Companies in this space facilitate peer-to-peer transfers, merchant payments, and cash-out services. Zoona is one of the best-known players, operating a mobile money network that serves more than 7 million customers. Digital lending is also a significant segment, with companies such as Lupiya providing loan origination and digital banking services through products that include payments, lending, and embedded finance.
Beyond these established categories, new entrants are broadening the scope of Zambia’s fintech market. Some firms are now focusing on savings, microinsurance, and asset and wealth management. DigMo offers digital savings and financial planning products aimed at low- and middle-income users, while Hobbiton Technologies develops software for insurance, capital markets, and payments.
Financial Inclusion Continues to Improve
Fintech growth has played an important role in expanding access to financial services across Zambia. FinScope data cited in the country’s National Financial Inclusion Strategy II 2024-2028 shows that overall financial inclusion reached 69.4% in 2020, up 10.1 percentage points from 2015 and 31.4 points from 2009.
The strongest gains have come from mobile money and other digital financial services, which have reached many people underserved by traditional banks. In 2022, fewer than 10% of adults owned a traditional bank account, while almost half of the population held a mobile money account. Mobile money penetration rose from nearly zero in 2009 to 58.4% in 2020, making it the most widely used financial product in the country.
Other financial products have also gained ground. Pension service coverage increased to 8.2%, while insurance services rose to 6.3% over the same period. These shifts suggest that digital channels are helping diversify access to formal financial products beyond basic payments.
What Is Driving the Market
Several factors are supporting fintech development in Zambia. Regulatory reforms have helped create space for innovation, including the launch of a regulatory sandbox in 2021 by the Securities and Exchange Commission. The National Financial Inclusion Strategy, implemented from 2017 to 2023, also introduced policy measures such as interoperability promotion, the removal of agent exclusivity, and the implementation of the National Financial Switch.
Support from incubators, innovation hubs, and development partners has further strengthened the ecosystem. Organizations including BongoHive, Asikana Network, and WECREATE provide training, mentorship, business support, and financing opportunities. Investor activity, though still limited compared with larger African markets, is also increasing. Recently, Lupiya raised US$11.25 million in Series A funding to expand its product range, upgrade its technology, and grow beyond Zambia.
Industry Analysis
Looking ahead, Zambia’s fintech sector appears set for continued growth, with mobile money likely to remain at the center of the market. The Payments Association of Zambia expects these platforms to expand beyond peer-to-peer transfers into merchant payments, savings, credit, and insurance. Interoperability will also be a major theme, as seamless transactions across banks, mobile money platforms, and POS systems could reduce friction and improve efficiency.
At the same time, rising transaction volumes are likely to increase cybersecurity and fraud risks, making data protection and fraud prevention increasingly important. Continued regulatory development will be essential to support responsible innovation while preserving the gains made in financial inclusion.
