By Ruben Haimbili
Last month, Bank Windhoek became the first bank in Namibia to launch instant wallet-to-wallet transfers, enabling transactions without traditional bank accounts. This innovation complies with the Payment System Management Act of 2023 and PSD-3 regulations issued by the Bank of Namibia in 2025, which establish clear standards for e-money issuance to strengthen security, efficiency, and financial inclusion.
Namibia’s strong digital infrastructure, driven by high mobile and internet penetration, is accelerating the adoption of digital payments. Rising e-money and EFT usage, the rollout of real-time payment systems, and a rapidly expanding digital transaction market signal a decisive shift toward a modern, inclusive financial ecosystem, moving away from traditional cash-based methods.
The Payment System Management Act (2023) and PSD-3 regulations aim to modernize Namibia’s e-money ecosystem by enforcing licensing for all issuers, requiring real-time issuance in Namibian Dollars, and ensuring funds are redeemable at par. It strengthens consumer protection through transparent fees, dispute resolution, and public education, while promoting interoperability for seamless transactions across platforms. These reforms encourage innovation and financial inclusion by allowing non-bank institution such as MTC to issue e-money and integrate with the Instant Payment Platform, as a direct response to this, MTC saw a niche market and pursued it, MTC launched MTC Maris in October 2024 under PSMA and PSD-3 regulations, offering mobile money services including deposits, withdrawals, transfers, and payments. Other services include wallet-to-wallet transfers via SMS or USSD, cash-in and out at approved Maris Agents and micro-loans through a partnership with Letshego.
For consumers, the reform delivers greater choice through mobile wallets, improved convenience via real-time transfers, stronger protection, and expanded access for unbanked populations. Once fully operational, interoperability allows customers to have access to their money anywhere, anytime. All ewallets and banks will be connected through Namibia’s Instant Payment Switch, so transfers work across platforms. For example, if someone sends you an eWallet to your mobile number, you can redeem it at any commercial bank of your choice.
For banks, it introduces new opportunities but also intensifies competition from non-bank players like MTC. Banks must innovate, integrate with the Instant Payment Platform, and pivot toward digital transaction fees and value-added services as non-interest income declines.
Namibia’s digital reform is accelerating financial inclusion through strong connectivity and payment innovation. Mobile penetration reached 87.1% with 2.67 million connections, while internet usage stands at 64.4%. Digital payments are projected at US $2.21 billion in 2025, growing to US $3.44 billion by 2030. In 2024, e-money transactions totaled N$43.7 billion across N$ 86 million transactions, supported by reforms like the Instant Payment Project for real-time, interoperable payments.