EFT transactions valued at N$388bn in 2023

The value of Electronic Funds Transfers (EFTs) transactions processed by Namclear was significantly higher in 2023 than in 2022. EFT transactions processed increased to 27 million, valued at N$388 billion, which represents a 9% increase in volume and a 10% increase in value.

Namclear is the Namibian Automated Clearing House (ACH) and is a designated Financial Markets Infrastructure (FMI) for the Namibian Payment Industry. It provides local clearing of interbank transactions, such as electronic fund transfers, card payments, and settlements on behalf of participants through the Namibian Interbank Settlement System (NISS), with the Bank of Namibia.

The Bank of Namibia announced this week that the increase in EFT usage could be attributable to increased economic activity. Card payment transactions continue to increase year on-year. In 2023, Namclear processed 84 million card transactions with a total value of N$ 42,6 billion which represented a 13% and 10% increase in volume and value, respectively.

The EFT intrabank transactions processed in 2023 amounted to 47 million, valued at N$834 billion, down from the N$922.7 billion reported in 2022. The decrease in EFT usage can be attributed to the use of electronic money (E-money), which is the payment stream most preferred by consumers.

Payment card intrabank transactions in 2023 increased over the transactions reported in 2022. Card transactions processed between merchants and customers of the same banking institution amounted to 766 million, valued at N$57 billion, which is a moderate decrease from the N$66 billion reported in 2022.

In 2023, the value and volume of E-money increased to N$49 billion and 96 million, respectively. This increase can be attributed to consumer behaviour changing as a result of ease of use and access, particularly to the wallets.

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