Windhoek: Instant Payments Namibia (IPN) on Friday welcomed support from Minister of Finance Erica Shafudah for the country's first national e-money fast payment system, known as the Instant Payment Solution (IPS). Shafudah reaffirmed the government's commitment to the project during her budget speech in the National Assembly on Thursday.
According to Namibia Press Agency, IPN Chief Operating Officer Marsorry Ickua stated that IPN, a subsidiary of the Bank of Namibia, was launched in 2024 and is being developed through a collaboration between the Ministry of Finance, BoN, and payment service providers. The system aims to enhance financial inclusion and expand access to financial services, particularly for underserved communities.
In her address, Shafudah announced that social grants currently paid out in cash will gradually transition to the new digital payment platform, with the long-term goal of phasing out cash disbursements. The project team, led by BoN Governor Ebson Uanguta, recently briefed the minister on progress. The central bank and its partners have completed integration testing with participating institutions, while user acceptance testing is underway.
Pilot projects for banked beneficiaries are expected to commence in the coming weeks. 'The participating institutions during this phase of the government-to-person use case are Bank Windhoek, Letshego Bank, NamPost, and the Bank of Namibia's Currency and Banking Operations Department,' it read.
The next phase will involve onboarding pensioners and other beneficiaries who currently receive cash payments. Once registered through participating institutions, beneficiaries will receive funds directly into bank accounts or digital wallets. IPN said the transition is expected to reduce costs, improve efficiency, and allow beneficiaries to access funds instantly without traveling long distances.
'Other use cases of the Instant Payment Solution include person-to-person payments, business-to-person payments, and e-wallet interoperability, which will be rolled out in phases to ensure seamless adoption while adequately preparing users for this national transformation in payment services over the next 18 months,' it added.
Uanguta stated that the initiative aligns with national calls for economic transformation and aims to improve access to affordable financial services. A national digital literacy campaign, including roadshows and stakeholder engagements, will accompany the rollout. Shafudah mentioned that while Namibia has a relatively high financial inclusion rate, rural communities and participants in the informal economy remain underserved, urging stakeholders to ensure timely implementation of the project for the benefit of citizens.