Despite the rise of digital payment channels like apps and QR codes, USSD remains Africa’s preferred method for financial transactions. Unstructured Supplementary Service Data (USSD) technology, which does not require smartphones or internet access, is favored for its simplicity and accessibility, making it especially valuable for mobile money and cross-institutional transactions. As of June 2023, USSD channels accounted for 70% of Africa’s instant payment transactions, facilitating payments between banks and mobile money platforms.
Countries like Ghana and Kenya, where mobile money accounts are held by 60% and 69% of adults respectively, illustrate USSD’s popularity. Yet, challenges remain, as complex USSD menus and frequent transaction failures hinder ease of use, according to AfricaNenda’s recent report on inclusive instant payment systems (IIPS).
While app-based channels follow in popularity, limited smartphone and internet adoption rates—51% and 43.2%, respectively—pose obstacles. Quick response (QR) codes are gradually gaining acceptance as another payment option. AfricaNenda’s November 2023 report highlights that cross-domain instant payment systems (IPS), which link banks and non-banks, are expanding payment choices by offering USSD, app, agent, and QR code channels.
The report also underscores the importance of electronic money (e-money) alongside traditional commercial funds transfer (EFT) instruments, enabling diverse transaction methods within Africa’s evolving financial ecosystem. As demand for instant digital payments surges—rising from 34% of Sub-Saharan African adults in 2017 to 50% in 2021—cross-domain systems are increasingly essential for interoperability and accessibility across the continent.
