Wave mobile money - Afrikan Heroes

Wave Mobile Money Emerges as Senegal’s Top Provider with $20.3B in 2022 Transactions and 11M Customers

May 1, 2023

Wave Mobile Money recorded over 12 trillion CFA francs (USD 20.3 billion) transactions in 2022, according to figures unveiled by the US fintech at a workshop on digital payment development and user risk mitigation in Dakar. In the mobile money sector in Senegal, Wave is considered the leading provider with nearly 11 million active customers, including approximately 7.18 million active users, representing 90% of the adult population with an account at Wave Mobile Money. This undisputed breakthrough is behind the strong growth in transactions recorded in 2022.

To democratize digital payment services, Wave Mobile Money invested at least 100 billion CFA francs ($169 million), thereby reducing the cost of mobile money pricing by 75%. According to the fintech, “this represents around 130 billion CFA francs in savings made by Senegalese, particularly thanks to the free electronic payment services for the network of concessionaires of the Senegalese state: payment of electricity bills, water bills, toll fees, and the development of merchant payment in the large distribution.”

“Until 2018, digital financial services on the Senegalese market were charged a minimum of 4%. However, the Wave Mobile Money product was built around the needs of the user and proposed a radically inclusive service, with several differential advantages, such as a simplified customer journey supported by innovative technology, diligent handling of claims to reinforce user confidence, and the most accessible costs, i.e., a money transfer at only 1% as well as free services such as deposit and withdrawal of money, bill payments, purchase of goods and services.” Wave reminds.

During the same year in the sub-region, there were approximately 133 million registered mobile money accounts in the region, representing an increase of 23 million accounts from the previous year. Approximately 54% of the combined adult population of Benin, Côte d’Ivoire, Ghana, and Senegal actively use electronic money services. However, obstacles remain significant for easy access to digital financial services. According to the results of a survey conducted in 2019 by the Observatory of Financial Services Quality (OQSF) among digital financial services users (ESFIM), the main obstacles, according to the opinions of the users surveyed, are mainly related to poor network quality (17.1%), transaction insecurity (15.7%), high service costs (15.4%), and insufficient supply.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Wave Mobile Money Raises $91.6M For Its Operations In Ivory Coast And Senegal

July 7, 2022

IFC has announced a 90 million euros (USD 91.6M) investment agreement in Wave Mobile Money S.A. (Senegal) and Wave Côte d’Ivoire S.A., two major mobile money service providers in their respective markets, to strengthen financial inclusion and support economic growth in Senegal and Côte d’Ivoire. This investment will help to lower the prices of these services in West Africa.

The funding from the IFC and other investors will allow Wave to expand its operations in Côte d’Ivoire and Senegal, as well as its product offering and customer base.

Coura Sène, regional manager of Wave Mobile Money

IFC negotiated finance of 90 million euros, comprising a 25 million euro loan from IFC for its own account, 41 million euro B loans from Symbiotics, Blue Orchard, responsAbility, and Lendable, and 24 million euro parallel loans from Finnfund and Norfund.

The collaboration between IFC and Wave will allow them to respond to the rapid surge in demand for digital payments and mobile money services in West Africa, which has been exacerbated by the COVID-19 outbreak.

However, access to digital financial services in the region remains low, with only 24% of active mobile money accounts, compared to 34% in East Africa in 2020.

Wave Senegal presently has over 6 million active users, and fintech has recently added bill payments, merchant payments, and more bank-to-wallet transactions.

“Wave’s vision of making Africa the first ‘cashless’ continent by offering affordable and user-oriented solutions corresponds to the IFC’s ambitions for universal financial inclusion,” said Coura Sène, regional manager of Wave Mobile Money for the area covering the Union West African Economic Community (UEMOA). “This investment from IFC and other partners will enable us to offer a wide range of financial products, encouraging consumers to remain in the formal financial system and promoting financial inclusion in the region.

“IFC’s aim is to expand access to financial services for low-income communities who are not banked,” said Aliou Maga, IFC’s Regional Director for West and Central Africa. “Our investment in Wave will not only create a more inclusive financial sector, but will also significantly aid in the development of digital solutions in West Africa.”

In addition to financing the operations of the two companies, IFC’s assistance will aid in the creation of an environment conducive to the development of mobile services money in the region, thanks to Wave’s service offering, which is distinguished by a simpler pricing grid and lower transaction costs. This should boost transaction frequency and value while also encouraging new types of use, particularly among low-income clients.

Wave’s drastically low-cost strategy, which costs only 1% for transfers and allows customers to make free cash deposits and withdrawals, has already impacted the markets of several WAEMU countries, with competitors following suit and decreasing rates — to the benefit of consumers. Wave saw significant rates of customer uptake and retention in Senegal and Côte d’Ivoire, actively contributing to both nations’ national financial inclusion and digital economy objectives.

IFC funded $5 million in Wave Mobile Money Holdings Inc. in September 2021 as part of a co-investment with Partech Africa. Over the last six years, IFC has invested or raised more than $1.25 billion in the African innovation sector from other investors.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh

Wave Mobile Money Becomes First Fintech In Francophone West Africa To Obtain Electronic Money License

April 23, 2022

Wave Digital Finance, a subsidiary of the Wave Mobile Money (Wave) Group, was granted the Electronic Money Establishment (EME) license by the Central Bank of West African States — BCEAO as the first non-banking structure, non-telecommunications operator operating in several markets within the WAEMU area.

The Central Bank’s decision is a clear indication of the growing acceptance of new models of financial inclusion driven by fintech companies such as Wave.
Until now, the pan-African fintech’s mobile money operations were conducted through partner banks.

Wave will now be able to offer its financial services and products directly to customers through this EME license. Additionally, it will enable the fintech to diversify its value proposition and expand its financial services offerings, including merchant payments, savings, credit, and international money transfers, in partnership with other industry partners.

Drew Durbin, Chairman and CEO of Wave, expressed his excitement at the Central Bank’s decision: “We are overjoyed to have acquired our EME license.” We are grateful to the Central Bank for endorsing our objective of providing financially accessible and inexpensive services to everybody. The authorities have watched us develop to become Senegal’s largest mobile money service provider in less than four years, with over 6 million monthly active users, and this is only the beginning of a new age of consumer primacy in WAEMU’s mobile money.”

Coura, Mme Carine Sène, Regional Director of Wave in WAEMU, concurs: “This is a watershed moment for us because it reflects both acknowledgement of recent accomplishments and optimism for the future.” more daring. Despite our market leadership, we were unable to provide all of the financial services that we desired to our customers. With this new designation as an Electronic Money Institution, we will have direct access to the Central Bank on an equal footing with our key competitors, and we will be able to contribute more effectively to their aim of fostering financial inclusion in the region. We expect that our new offerings will increase customer acquisition and revenue generation for our distribution partners.”

Wave’s mobile money service, which began in Senegal in 2018, has already revolutionized the decades-old mobile money sector in the WAEMU region and beyond.

Due to Wave’s unique business model and best-in-class approach to financial inclusion, it is able to offer free bill payments, fee-free money withdrawals and deposits, and transfers at just 1%, which is up to 70% cheaper than competitors’ standard pricing structures.

“Our goal is to immediately expand our license to other WAEMU member countries so that our entire client base in the area can benefit from it as well. Another step toward Wave’s goal of making Africa a cashless continent,” Ms. Sene added.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh