Image source: Invest Africa

Imagine a world where every financial transaction, from buying lunch at school to paying for a bus ride, happens effortlessly with a simple tap from a mobile device, NFC card or bracelet.

This is becoming the norm in Africa, where digital payments are impacting the lives of citizens and merchants while contributing to widespread economic growth.

“Mobile money has become foundational to increasing financial inclusion in Sub-Saharan Africa,” according to World Bank.

Despite the remarkable progress, there are still significant challenges to overcome. For mobile network operators (MNOs), meeting these hurdles with available solutions is key to driving further growth and inclusion.

Read on to explore the current state of mobile money in Africa, the obstacles to its widespread adoption, and how VeryPay is on a mission to provide the digital payment infrastructure that will create more accessible, secure, and efficient financial systems for everyone.

Evolution of Mobile Money in Africa

From Inception to Innovation: The Journey of Mobile Money in Africa

Mobile money started as a simple solution to send money across distances without the need for a bank account. One of the earliest and most successful examples is M-Pesa, launched in Kenya in 2007 by Safaricom. It allowed users to deposit, withdraw, and transfer money easily using their mobile phones.

The concept of mobile money emerged as a solution to the lack of accessible banking infrastructure in many developing countries, particularly in Africa. Mobile money scaled financial inclusion by leveraging the widespread use of mobile phones, even in the most remote areas. The future of mobile money is poised to be transformative, with several key trends and developments expected to shape its trajectory.

The future will likely see greater interoperability between different mobile money platforms, enabling seamless transactions across different networks and countries. This will facilitate cross-border remittances and international trade, further driving economic growth. The growth of mobile money will be accompanied by an expansion of merchant networks accepting mobile payments. This will further drive the adoption of cashless transactions and support local economies.

The Pioneers Who Paved the Way 

Over the years, other major players have joined the market, including MTN Mobile Money, Orange Money, and Airtel Money. These companies have expanded their services beyond basic money transfers to include bill payments, savings, loans, and even insurance. Their contributions have been pivotal in increasing financial inclusion and economic growth.

“What Africa’s most vulnerable populations need are innovative solutions tailored to rural and underserved areas. This is the driving force behind our mission at VeryPay; to bring a more inclusive future to African citizens and catalyse economic growth with technology that reaches last-mile users” says Seun Solanke, VeryPay CEO and former VP of Airtel Nigeria.

Numbers Don’t Lie: Growth Statistics and Adoption Rates 

The growth of mobile money in Africa has been remarkable. By 2023, there were over 400 million registered mobile money accounts across the continent. Countries like Kenya, Ghana, and Tanzania have some of the highest adoption rates, with mobile money transactions becoming an integral part of daily life. 

Key Challenges in Adoption and Usage of Mobile Money 

Can Mobile Money Overcome Connectivity Issues? 

While mobile money has grown rapidly, there are still technological hurdles to overcome. Many rural areas suffer from poor mobile network coverage, making it difficult for users to access mobile money services consistently. Additionally, security and fraud remain significant concerns. Users and service providers must continuously work to protect transactions from cyber threats. 

The Real Cost of Mobile Money: Scaling Affordability 

Another barrier is the affordability of mobile devices and services. Many people in low-income areas find it challenging to afford smartphones or the data plans necessary to use mobile money services. Furthermore, financial literacy is a critical issue. Many potential users lack the knowledge to use these services effectively and safely, leading to mistrust and hesitancy in adopting mobile money. 

Interoperability Issues: Why Seamless Transactions Are Still a Dream 

One significant challenge is the lack of seamless transactions between different mobile money services. Users often find it difficult to transfer money between different mobile money providers. Additionally, integrating mobile money with traditional banking systems can be complex, limiting its utility and leading to cash dominance. 

How Can VeryPay Help? 

VeryPay offers an innovative payment token management system designed to address these challenges. By partnering with mobile network operators, VeryPay provides a secure and efficient way to manage payments across various sectors such as agribusiness, transportation, education, retail, and more. 

Imagine the daily commute or purchasing your weekly groceries with seamless tap-and-go payments. Farmers would gain access to credit, support rural communities, and maintain safety efficiency in the school system, all while stimulating economic growth for the continent. 

This is what’s possible with VeryPay.  

Why Choose VeryPay? 

• The only wallet companion solution that makes a closed-loop payment system and token management system available to any eWallet operator using simple, ready-made, brandable apps. 
• VeryPay fosters financial inclusion and increases mobile money adoption by enabling secure and convenient tap-and-go payments for consumers and merchants who may lack access to traditional banking systems. 
• Cost-Effective: The solution is quick to deploy and avoids the high costs associated with traditional payment methods. 
• Reaching last-mile users: This extends the use of a mobile wallet with group-sharing functionality to capture populations without smartphones or access to mobile money, e.g., the young or elderly. 
• An “all-in-one” sector-agnostic hybrid payment solution allows merchants to use a smartphone to conduct all transactions from the operator’s branded closed-loop cards and accept EMV payment cards.  
• Creates digital financial records for merchants to increase credit access. 

Mobile money has made significant strides in Africa, but there are still hurdles to overcome. Innovative solutions like VeryPay can fill the gaps in mobile money adoption and usage while fostering financial inclusion. By addressing technological, economic, and interoperability challenges, VeryPay is helping to create a more inclusive and efficient financial system for all. 

VeryPay brings speed and convenience to mobile money payments and plays a major role in driving financial inclusion by creating digital financial records for everyone. 

We invite you to explore VeryPay’s solutions and see how they can benefit your organization. Book a call or contact us for more information and take the first step towards a financially inclusive future.