The Payments Association of Namibia (PAN) has warned that card-only payment policies risk excluding individuals without access to banking services, after the City of Windhoek shifts towards card-based parking payments.
PAN Acting Chief Executive Officer Mbapeua Kauuova told The Brief that while digital payments are expanding, cash remains critical to ensuring broad access to goods and services.
“The exclusion of cash payments and acceptance of card payments only may create barriers for individuals who do not have bank accounts or access to digital banking services. Financial inclusion remains an important priority in Namibia, and access to goods and services should not be restricted to card-based payments alone,” Kauuova said.
The Bank of Namibia maintains that cash remains legal tender under Section 39 of the Bank of Namibia Act, 2020.
Deputy Director of Strategic Communications and Sustainability, Naufiku Hamunime said banknotes and coins issued by the central bank, and not withdrawn from circulation, must be accepted at face value in settlement of all public and private debts.
Hamunime said that while digital channels such as electronic funds transfers, cards and mobile money are well established, cash continues to play a key role in advancing financial inclusion.
“Alongside the continued acceptance of cash as a means of payment, digital payment methods are well established in Namibia and are recognised as acceptable channels for making payments, contributing to the Bank’s agenda to advance financial inclusion,” she said.
On prepaid and service-specific cards, Hamunime clarified that the central bank does not regulate closed-loop products such as store-specific gift cards, which fall outside the wider payment system.
“As such, the Bank does not exercise oversight over the operations of these prepaid cards, including any interest earned,” she said.
Kauuova added that funds held on prepaid or service-specific cards generally do not accrue interest, as they are designed for transactions rather than savings.
City of Windhoek Spokesperson Harold Akwenye said the move towards card-based parking payments was driven by operational and safety considerations.
“During the initial rollout of a cash-only system, the city received numerous complaints from residents and visitors who did not routinely carry cash, particularly for small-value transactions such as a typical N$5 parking fee,” he said.
He said the card-based system was introduced to improve safety, convenience and accountability, while cash remains available through controlled kiosks and prepaid parking cards.
“There has been a concerning increase in incidents where marshals were followed and attacked after completing their shifts, with cases formally reported to the Namibian Police,” Akwenye said.
A private Namibian parking management company awarded the contract to manage parking by the City of Windhoek, has introduced the strictly cashless parking system in the city centre. Under the new system, motorists are required to use the company-issued parking cards or bank cards, a shift that some say comes with transaction fees and additional charges.
