The evolution of payments in Africa
Receiving money in high school in the 1990’s required cleverness and, honestly, a great deal of tact from my parents. The money was either wrapped in paper or disguised in a tin of milo and even sometimes carefully concealed in a snack and sent by bus to my school including other accepted groceries- my Ghanaian fellows can relate. It was almost as if receiving money was a crime and even worse, your parcel could end up in the wrong hands and woe betide you, if they find the money first- your guess is as good as mine.
Things have changed now, and technology keeps revolutionizing the way and manner in which people send and receive money. Banks now have branches across countries and many more people rely heavily on mobile money services for sending and receiving money in their home countries.
The World Bank reports that Sub-Saharan Africa takes the lead in mobile money innovations, adoption, and usage globally. This has increased the contribution of Mobile money services to the Gross Domestic Product (GDP) of the economy of African countries. A report from the World Bank indicates that 10% of GDP in African economies is generated from mobile money operations, With Asia recording 7 percent of GDP from Mobile Money in Asia . Great improvement!
But there is more- An estimated 65% of adults in Africa remain unbanked according to The World Bank. A survey by GSMA indicated that mobile phone subscribers stood at 46 percent in Sub-Saharan Africa, while smartphone adoption was at 64%. This is expected to grow to 50 percent and 75 percent respectively by 2025. With the wide adoption of mobile phones, The IMF blog reports that Mobile money accounts now surpass bank accounts in the region and greater financial inclusion has benefited vast swathes of population, accounting for more than two-thirds of the population in Sub-Saharan Africa alone.According to McKinsey and Co, as technology has advanced, so has innovation. Consumers in Africa continue to benefit from an increase in the expansion of alternative payment methods across the continent, offered by local and international fintech players and telecom companies. Within the fintech ecosystem, players are developing digital wallets that are linked to a variety of payment methods, including cards, accounts, and mobile money.
So what’s the point?
Enviably, it’s easy to make payments across all of Europe using one currency and readily accessible innovations. To send money Abroad to the continent has seen a good number of technological influxes. How about from Guinea to Kenya or from Nigeria to Ghana or From Cameroon to neighboring Senegal? That is the challenge we are talking about.
We cracked it:
54 countries, 42 currencies, and doing business with each other in fragmented currency conversions is certainly not the most desirable for any business. WayaMoney has the solution, a one-stop app, connected to both bank and all mobile money apps to make payments, with your Money Where Ever. With WayaMoney payments to other African Countries is at the click of a button.
We are live in 7 countries and are raising $3 million in our Seed raise to expand our reach to more countries and continue to build a profitable solution to the fragmented payments system in Africa. Major pipeline partnerships with service providers and businesses are underway to integrate them on the WayaMoney app and provide an even more seamless payment experience
