Bussiness Column
Digital and mobile money transactions in Zambia have expanded rapidly, climbing from K22 billion in 2018 to over K452 billion to K486 billion in recent years, according to the latest Finscope surveys.
In terms of mobile money expansion, latest shows that active mobile money wallet registrations have grown from 3.1 million in 2018 to 15 million in 2026.
As result, financial inclusion in Zambia has surpassed 80 percent, moving closer to the national target of 85 percent by 2028.
As Zambia moves towards a cashless economy, fintech companies are increasingly becoming important link between consumers, businesses and government institutions, helping to digitise payments and make transactions faster, more convenient and accessible.
The growing role of digital payments comes at a time when Zambia is recording significant progress in financial inclusion.
According to the 2025 Zambia FinScope Survey, financial inclusion increased from 69.4 percent in 2020 to 80.1 percent in 2025, representing a 10.7 percentage-point increase.
Over the same period, financial exclusion declined from 30.6 percent to 19.9 percent, with the survey pointing to the expansion of digital channels and increased access to formal financial services as part of the progress.
For Zambia, however, the shift towards digital payments is about more than financial inclusion. It is also becoming increasingly relevant to the country’s ambition of developing a 24-hour economy, where businesses and public services can operate more efficiently beyond conventional working hours.
A 24-hour economy requires payment systems that are available when customers need them, without depending entirely on physical cash or the operating hours of traditional financial institutions.
One fintech company positioning itself at the centre of this transformation is Hobbiton Technologies, which is developing digital solutions across payments, insurance and capital markets as it seeks to promote financial inclusion.
Hobbiton is reshaping Zambia’s fintech, insurance, and capital markets ecosystem by building digital infrastructure that expands financial inclusion for everyday citizens and businesses which should be emulated.
The local company have a running partnership with the SMART Zambia Institute through a Memorandum of Understanding to drive national digital transformation and government systems development.
Co-founded and led by Chief Executive Officer Mwangala Mwiya, who was named Runner-Up for Information and Communication Technology (ICT) Champion of the Decade at the Liquid Intelligent Technologies Zambia Excellence Awards.
Mr Mwiya said recently that Hobbiton was established to bridge the gap between traditional financial services and the growing demand for secure, affordable and accessible digital financial solutions, particularly among underserved communities and small and medium-sized enterprises.
According to him, the company’s payments platform, Lipila, has emerged as one of its key products, providing businesses and institutions with a digital gateway through which they can accept payments using mobile money, cards and bank integrations.
Mr Mwiya maintained that company’s objective is to use technology to make financial services more inclusive, efficient and convenient, while supporting Zambia’s broader digital transformation agenda.
Local fintech solutions like Hobbiton’s Lipila platform is already being used through its partnership with the National Road Fund Agency (NRFA), Hobbiton Head of Product Chrispin Milumbe also added recently that Lipila is enabling businesses and institutions to accept different payment options, including Airtel Money, MTN Mobile Money, Zamtel Money and bank payments.
One of its applications is the payment of toll fees as it allowing payment of services such as toll gate fees directly using mobile money.
Previously, motorists arriving at a toll gate with money in their mobile wallets without cash had to withdraw money before paying the toll.
From the observations, the introduction of mobile money payments changed the narrative that under the system, a motorist now provides their mobile number to the toll collector.
Mr Milumbe says the system processed more than 40,000 transactions within about two months of its rollout thus resulting in improved efficiency at toll gates.
The development illustrates how fintech can be integrated into government services to address practical challenges faced by citizens.
At a wider level, however, the system contributes to a gradual reduction in cash handling and encourages the adoption of digital transactions.
As NRFA Public Relations Manager Alphonsus Hamachila observed, the introduction of mobile money payments at toll gates across the country as proving to be more convenient to motorists and the agency as the roll out is avoiding huge cash handling.
Embracing digital payment solutions especially for small businesses, can improve collections, automate disbursements and simplify reconciliation.
For government institutions, they can improve revenue collection and reduce the administrative burden associated with handling cash.
As businesses operate for longer hours, customers also need to be able to pay for goods and services without being restricted by bank opening hours or access to physical cash. Hence, digital payment systems therefore form part of the infrastructure supporting economic activity beyond conventional working hours.
However, as Zambia moves further towards a cashless economy, the challenge will be ensuring that digitalisation does not create another form of exclusion.
The task is therefore not only to expand digital financial services, but also to ensure that the infrastructure, affordability, security and financial knowledge required to use those services expand alongside them.
The experience of Lipila and the NRFA demonstrates how technology can be integrated into an everyday government service to make transactions more convenient while reducing reliance on cash.
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