Payment Institutions in Tunisia: Challenges and Opportunities
The activity of payment institutions is indeed on the rise; however, profitability does not seem to be forthcoming, at least for the majority, as shown by the figures from the previous year. The number of client payment accounts opened stood at 78,930, but only 23,830 are active.
Key Figures
- The consolidated net payment product of active payment institutions stood at 9.7 billion TND (Tunisian dinars) for the 2024 fiscal year, recording a growth of approximately 8.4 billion TND compared to 2023. However, this level remains insufficient and does not allow for the coverage of significant operating expenses.
- This explains the losses posted by these institutions, which totaled 17.3 billion TND (12.4 billion TND for the 2023 fiscal year).
The Path to Improved Profitability
The key to improving the profitability of payment institutions in Tunisia lies in transitioning from a volume-based transaction model to a value-added model. They must evolve from simple payment means to true digital financial partners for individuals and businesses.
Strategic Transformation
This transformation involves:
- Innovation centered on local needs
- Aggressive operational efficiency
- Constructive collaboration with the regulator to create a conducive ecosystem for growth
Major Obstacle
In our opinion, the major obstacle remains that these institutions do not provide access to financing. Tunisians open bank accounts to access this leverage. Offering them only payment services in an economy where cash is king is not sufficiently appealing.
By addressing these challenges and opportunities, payment institutions in Tunisia can unlock their full potential and achieve sustainable growth and profitability.
