Zambia is at a financial crossroads. Cash is king, particularly in rural and informal markets, but the ascendance of mobile money platforms, digital payment services and payment gateways is changing the way Zambians (and increasingly, businesses) engage in transactions. Fueled by government efforts and fintech innovation, the country’s payment systems are getting faster, more inclusive and a lot more digital.

Legacy of the Past: The Place of Cash in Zambia

Despite the proliferation of money transfer products, cash remains the most dominant medium in day-to-day transactions in Zambia, especially in the rural and peri-urban areas. The Zambian Kwacha (ZMW) is the official currency, usually abbreviated locally as “K” or “ZK”. 

Cash payments are the only available payment method in many rural markets and small-town shops. Small denominations become even more necessary because vendors often can't give change for larger bills. Although dollars have been used in tourist hotspots, such as Livingstone, and in upscale safari lodges in some cases, the Kwacha is still needed for everyday purchases. 

Credit and Debit Card Use: 

Most of the bigger cities within Zambia for instance Lusaka, Kitwe, Livingstone the authorisation of credit and debit cards has greatly advanced. Visa or Mastercard are now widely accepted at most of the upper-market hotels, shopping malls, restaurants and gas stations. But then again, few places in the entire country are friendly to American Express. But beyond those urban areas, card acceptance is still sparse and erratic, with large numbers of merchants more comfortable taking cash.

You will find ATM’s at towns and cities belonging to large banks like Zanaco, Stanbic, Standard Chartered, Barclays Bank Zambia and First National Bank (FNB). The majority of these machines accept international cards, but often with higher fees. The foreign transaction fee and ATM provider fee can range between $5 USD and $10 USD per withdrawal, and most ATMs have a per-transaction limit of 2,000 to 4,000 Kwacha. 

Safety is an issue, especially card skimming and fraud at freestanding ATMs. For safe usage:

• Work on machines in highly trafficked, well-lit locations.
• When punching in your PIN, protect it.
• Check on your account from time to time for any unusual transactions.

Zambia Mobile Money: 

In the last decade, mobile money generally, mobile money Zambia services, in particular, have also been an essential driver of financial inclusion in the country. Airtel Money, MTN Mobile Money and Zamtel Kwacha — platforms that enable users to send money, pay utility bills, buy airtime and even take out modest loans — are there to make it all happen through their mobile phones.

Local people in Zambia are using mobile wallets to supporting this project already but if you’re not a local, you are unable to have a wallet as you need a local number and local accounts to be able to verify your wallet. 

Digital and Online Payments are Transforming but Fragmented

Zambia is still growing in terms of online payments. Online payments are not centrally regulated in Zambia, meaning that banks must follow the standards of global card issuers. For instance:

• Visa requires customer authentication through the name, card number, expiration date, and billing address.
• Mastercard enforces PCI DSS compliance.
• American Express advises that items be sent only to billing addresses.

In the world of e-commerce, Zambia local payment solutions beat global ones. Local shoppers in Zambia rely on mobile wallets and Bank transfers more than global credit cards for local familiarity and faster processing. They usually witness higher conversion rates from those businesses that offer them with mobile payments options including MTN Mobile Money and Airtel Money.

Fintech startups and other payment companies in Zambia are taking advantage of this. Leading platforms include:

• ZynlePay: Handles both mobile and card payments, such as Visa, Mastercard, and American Express.
• Pesapal: It has inegrated mobile and card solutions for online usage.
• DPO Group: Famous for it secure Pan-African payments platform.
• Global participants such as 2Checkout (Verifone), PayGate, CoinPayments, and Plisio also serve Zambian merchants.

✅ Do you want to receive payments globally and locally in Zambia?

Transfi B2B payment gateway for Zambia is an all-in-one solution. It enables local businesses to receive payments from around the world – including mobile money, credit/debit cards, and cross-border payments – in real time. Built to be compliant, provide currency conversion and offer security from fraud, it is the ideal digital payment solution for Zambia’s burgeoning online community.

PoS and Card-Based Movement Patterns

POS Device Use is Growing Fast in Zambia. PoS transactions represented 64% of all card transactions in 2022, compared to 51% in 2021. ATM usage decreased while PoS surged in cities and formal businesses. But in 2023, the number of PoS transactions was K105 per 53.4 million transactions. 3bn, representing a 13.1% decline in total volume on transaction—notably fueled by the preference for mobile money as well as periodic connection issues within PoS networks in remote areas.

These fluctuations demonstrate the necessity of robust digital infrastructure and extended PoS acceptance in semi-urban and rural Zambia. Any business that seeks to grow will have to offer their customers multi-modal checkouts — taking card and mobile money alike, to suit customer needs.

Also read: Cross‑Chain Stablecoins: Interoperability and the Bridge Wars

Licensing and Regulatory Environment

Payment Systems oversight in the country is under the control of the Bank of Zambia. It certifies and accredits system operators and organizations. The main licensed payment system operators are as follows:

• Airtel Mobile Commerce Zambia Ltd
• MTN Mobile Money Ltd
• Zamtel Kwacha Mobile Payments

Zambia is also pursuing a process of digitization of government services and tax payment, which will reduce cash usage Zambia and shrink its shadow economy. These are in addition to private sector fintech partnerships and merchant onboarding in sectors such as retail, hospitality and travel.

The move to the cashless economy

Zambia is gradually moving towards financial digitalization, even though there still are disparities across regions. Statista analsyis suggests that the country’s digital payment systems market is expected to increase at a CAGR of 16.12% from 2023-2027, seeing a US$2.47 billion market size by 2025.

Factors leading to this change are:

• Expanding mobile network penetration
• Increased smartphone usage
• Government support for digital inclusion
• Fintech innovation for small and micro businesses

Also read: Popular Local Payment Methods and Solutions in the United Arab Emirates

Conclusion:

Zambia narratives Zambia’s payment landscape moving from cash-driven to fintech-led mobile-first payments. Although cash is still important, particularly in rural areas, the increase in mobile money Zambia, the increase in card usage, and friendly government policies suggest a Zambia that is increasingly digital and cashless.

For modern businesses, the provision of the best digital payment solutions for Zambia is more than being an upgrade—it’s a part of the requisite for relevance and survival!

FAQs:

1. What is Zambia's most popular payment service?

Cash remains widely used, particularly in rural areas, but mobile money services, like Airtel Money and MTN Mobile Money, have gained in popularity as the primary form of digital payment.

2. Can international companies take payments online in Zambia?

Yes. Enter solutions such as Transfi, with local integrations and crossborder payment bridge options, and it is relatively simple to begin accepting payments from Zambian and international customers.

3. How widely accepted are credit cards/debit cards in Zambia?

They are generally accepted in big cities and tourist centers, particularly Visa and Mastercard. Acceptance falls off sharply in smaller towns and rural areas.

4. What is the percentage of mobile wallet penetration in Zambia?

Globally, more than 58.4% of adults used mobile money in 2023, with transactions amounting to over K100 billion in a single month in April, 2025.

5. What are some ways for local businesses to increase ecommerce sales in Zambia?

Everything you need to do to accommodate the highest number of potential shoppers includes having local payment methods such as MTN Mobile Money or bank transfers and working with trusted payment gateways in Zambia that allow shoppers to pay with both their card and mobile wallets.