Real-time payments to Generate Over $15 Billion in Additional GDP Growth for Nigeria and South Africa by 2028

Real-time payments are predicted to generate over $15 billion in additional GDP growth for Nigeria and South Africa by 2028, according to the Real-Time Payments: Economic Impact and Financial Inclusion report published by ACI Worldwide. This report, produced in collaboration with The Centre for Economics and Business Research, draws on data from 40 countries and establishes a novel connection between real-time payments and financial inclusion.

The report highlights that real-time payments not only fuel economic growth but also provide citizens with fast and affordable access to financial services. In 2023, these payments contributed $164 billion to the GDP of the 40 countries studied—equivalent to the labor output of 12 million workers. Moreover, the financial inclusion gains from real-time payment adoption offer substantial revenue opportunities for financial institutions globally.

The findings reveal that Nigeria, as Africa’s largest real-time payments market, has experienced the greatest economic benefits. Real-time payments added $7 billion to Nigeria’s GDP in 2023, a figure projected to rise to $15 billion by 2028. During the same period, the share of the banked population in Nigeria is expected to grow by 6.5%, placing it among the top five countries globally for financial inclusion improvements. This expansion represents a potential $40 billion profit increase for Nigerian banks.

In South Africa, already boasting 84% banking penetration, real-time payments are expected to integrate 425,000 previously excluded individuals into the financial system by 2028. Although this represents a modest 0.8% growth in inclusion, it translates to a significant $899 million profit opportunity for banks. South Africa’s real-time payment contributions to GDP are anticipated to more than double to $486 million by 2028, underscoring the transformative impact of financial inclusion and technological innovation.

Santhosh Rao, senior vice president of sales for MEASA at ACI Worldwide, remarked that Africa’s financial ecosystem holds vast potential for transformation through real-time payments. He emphasized that these systems are more than a convenience; they are catalysts for economic empowerment, enabling affordable and seamless financial services that drive growth and opportunity. Rao also noted that collaboration among Africa’s entrepreneurs, innovators, and governments amplifies this potential. Together, they are creating the foundation for a sustainable and inclusive future where shared efforts fuel progress and prosperity across the continent.

The report underscores how real-time payments are reshaping financial inclusion in Africa, setting the stage for long-term economic benefits and innovative growth across the region.

Have you read?
Countries: Powerful Passports.
Countries: Richest.
Countries: Poorest.
Countries: Happiest.
Countries: Life Expectancy.