NamibiaInvests in Biometric Tech for Instant Payments

Published Date : 7/2/2025 

Namibia is evaluating biometric technologies as a cornerstone for its instant payment system, aiming to boost financial inclusion and combat fraud. The initiative, part of broader digital public infrastructure efforts, faces challenges in rural areas and cost-effective implementation. 

Namibia is making strides in its quest to build a robust instant payment system, with biometrics playing a pivotal role. The country's push aligns with the ID4Africa 2025 agenda, which emphasizes leveraging digital solutions for inclusive growth. Marsorry Ickua, chief operating officer of Instant Payments Namibia, highlights the importance of secure authentication to ensure the system's success. However, the journey is fraught with challenges, including rural accessibility and the need for cost-effective technology. n nThe instant payment system, launched last year, is part of Namibia's broader digital public infrastructure strategy. This includes a new Civil Registration and Identification law, a dedicated budget for implementation, and the rollout of digital ID cards set for July 2026. Ickua, who transitioned from the Central Bank to lead this initiative, emphasizes that the system's foundation must prioritize authentication to prevent fraud and ensure user trust. Biometric authentication is a top contender, as it addresses vulnerabilities in traditional card-based systems. n nDespite the promise of biometrics, the project faces hurdles. Ickua notes that hardware costs for biometric systems are prohibitively high, particularly for rural banks and service points. This has led to a focus on cost-effective solutions, such as QR codes, which could bridge the gap between urban and rural access. However, the system's success hinges on collaboration between the government, financial institutions, and mobile network operators (MNOs) to integrate data and ensure seamless onboarding. n nLessons from global models, like India's UPI platform and Kenya's M-Pesa, are guiding Namibia's approach. Ickua draws parallels between Namibia's challenges and India's early struggles, noting that once the foundational elements—like digital ID and connectivity—are in place, the financial sector can thrive. However, unlike M-Pesa, which emerged from a void in financial services, Namibia already has a functional payment system. The challenge lies in expanding coverage to the 20% of the population currently underserved, a task complicated by limited mobile network coverage, electricity access, and digital literacy. n nThe Central Bank of Namibia is open to investing in infrastructure to accelerate the project, but the system must rely on the national registration database for onboarding. This ensures a reliable identity verification process, crucial for preventing fraud and money laundering. Ickua stresses the need for a hybrid model, where third-party data (like MNOs') is combined with government records to create a robust authentication framework. This approach could also pave the way for digital wallets, which would allow users to store documents like e-passports and birth certificates, streamlining transactions. n nWhile the road ahead is complex, Ickua remains optimistic. He believes that once urban areas adopt the technology, the momentum will extend to remote communities. The ultimate goal is to create an interoperable system where digital wallets and bank accounts work seamlessly, fostering financial inclusion and economic growth. For now, the focus remains on deploying infrastructure, engaging stakeholders, and selecting the right technologies to build a secure, scalable payment ecosystem. n nNamibia's efforts underscore the transformative potential of digital public infrastructure. By addressing barriers like rural access and cost, the country aims to set a precedent for other African nations. The success of this initiative will depend on balancing innovation with practicality, ensuring that the benefits of instant payments reach all citizens, regardless of location or socioeconomic status. 

Frequently Asked Questions (FAQS): 

Q: What is the primary goal of Namibia's instant payment system?

A: The primary goal is to enhance financial inclusion by enabling fast, secure transactions across the country, particularly in underserved rural areas.

Q: Why are biometrics being considered for the payment system?

A: Biometrics are seen as a secure method to authenticate users, reducing fraud and ensuring reliable identity verification for onboarding.

Q: What challenges does Namibia face in implementing this system?

A: Key challenges include high hardware costs, limited rural connectivity, and the need for collaboration between government, banks, and MNOs to integrate data.

Q: How does Namibia's approach compare to global models like M-Pesa?

A: While M-Pesa emerged from a lack of traditional banking, Namibia's system builds on an existing infrastructure, focusing on expanding coverage rather than replacing it.

Q: What role will digital wallets play in the future of Namibia's payments?

A: Digital wallets are expected to store documents like e-passports, enabling seamless transactions and interoperability with bank accounts. 

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