Mobile wallets are rapidly gaining popularity in Africa, offering a viable alternative to traditional banking services for a significant portion of the population that lacks access to them. These digital wallets are particularly useful for facilitating money transfers, especially international remittances.
Singapore-based cross-border payment company Tranglo announced on Monday, December 16, the addition of 10 new African countries to its payment network. This expansion increases its coverage on the continent to 25 countries, providing an additional option for international remittances to Africa.
The newly covered countries include Benin, Cameroon, the Democratic Republic of Congo (DRC), The Gambia, Guinea, Guinea-Bissau, Ivory Coast, Malawi, Rwanda, and Tanzania. At launch, all new markets will support peer-to-peer electronic wallet transactions, enabling near-instant transfers in local currencies.
This move comes amid a surge in mobile money adoption across Africa. According to the GSMA’s State of the Industry Report on Mobile Money 2024, mobile money subscriptions grew by 19% between 2022 and 2023, reaching 856 million. Total transactions increased by 28% to 62 billion, while the value of these transactions rose by 12% to $919 billion.
The growth of mobile money has made international remittances more accessible, which are "essential for many African families, helping them address urgent challenges such as food insecurity, drought, supply chain disruptions, flooding, and debt servicing," the GSMA notes. In 2023, international remittances and merchant payments saw the highest growth in usage, with mobile money remittances reaching $29 billion—a 23% year-on-year increase. According to the World Bank, total international transfers to Africa amounted to $90.2 billion.
However, Tranglo's solution will face increasing competition, particularly from telecom operators. For instance, Safaricom’s M-Pesa platform is ramping up efforts to expand its acceptance of international transfers from an ever-growing number of countries.
By Isaac K. Kassouwi,
Editing by Sèna D. B. de Sodji
