The cheapest option for your specific transfer depends on where you’re sending from, where the money is going, how much you’re moving, and how quickly it needs to arrive.

Understanding how these services make money helps you avoid overpaying. Some charge upfront fees with transparent exchange rates. Others advertise zero fees but mark up the exchange rate.

The total amount your recipient receives matters more than how the costs are structured.

This guide breaks down the services by category and explains what to look for when comparing options.

Digital-first remittance platforms

These companies operate primarily online and through mobile apps. They tend to have lower costs than traditional services because they don’t maintain physical locations.

Africhange

Africhange operates across key remittance corridors from Canada, the UK, and Australia into West and East Africa, with a focus on cost efficiency and speed.

Part of Africhange’s appeal lies in its regulatory footing. Its Nigerian subsidiary holds an International Money Transfer Operator licence from the Central Bank of Nigeria, which allows the company to process remittances directly rather than through third-party intermediaries.

This structure shortens settlement timelines and reduces avoidable costs once funds are received in Nigeria.

Africhange currently supports transfers from Canada to Nigeria, as well as to other markets including Ghana, Kenya, Benin, Togo, and Senegal. The platform also supports multiple currencies on both the sending and receiving sides, which makes it easier to manage cross-border payments without constant conversion headaches.

LemFi

LemFi has emerged as one of the fastest‑growing platforms for remittances to Africa. It combines low cost with a smooth app experience that works well for people sending money from North America, the UK, and Europe.

Users open an account, verify their identity, and then send money directly to bank accounts or mobile wallets in countries like Nigeria, Ghana, Kenya, Cameroon, Senegal, and others. Most corridors carry zero transfer fees, and many transfers arrive within minutes.

You can hold balances in US dollars, British pounds, Canadian dollars, and other major currencies, then convert and send at competitive exchange rates.

The platform is regulated in the UK and Canada and holds licences to operate remittances into key African markets. Funds typically reach a recipient’s bank or mobile wallet in minutes. A loyalty or rewards component may appear, providing additional value for frequent senders.

Remitly

Remitly is one of the long‑standing players in cross‑border money transfers. It operates through a simple app and web interface that walks you through sending money step by step. When you use Remitly you choose between two ways to send. One option keeps fees low but takes a little longer.

The other delivers faster if timing matters more than cost. You can fund transfers with a bank debit or credit card, and your recipient can get money straight into a bank account or popular mobile money wallets used in many African countries.

WorldRemit

WorldRemit is similar to Remitly but supports a wider range of payout methods in many countries across Africa. In addition to bank deposits and mobile money, WorldRemit sometimes offers cash pick‑up options at local partners if the recipient prefers that. The interface is straightforward. You enter the amount, pick where you are sending it, choose how the recipient will collect the cash, and the app shows fees and delivery times before you confirm.

WorldRemit tends to settle transfers within a few hours for most corridors, though it can vary by country and bank processing times.

Wise

Wise focuses on transparency and cost efficiency. Unlike many banks or money transfer services, it uses the real mid‑market exchange rate and charges a single, upfront fee. This means the recipient gets the exact amount shown before you confirm the transfer, without hidden markups.

Wise is particularly suitable if keeping costs low is your priority, and you can wait for the transfer to process. Delivery times vary depending on the destination bank, but most transfers arrive within a few hours to a couple of days. The platform supports multiple currencies and countries, making it convenient for repeat transfers with predictable pricing.

Traditional networks

These established services have extensive physical networks across Africa. They’re useful when recipients need cash pickup or live in areas without reliable banking infrastructure.

Western Union

Western Union has one of the largest agent networks in Africa, making it a reliable option for recipients who may not have access to a bank or mobile money account. The service supports cash pickup, bank transfers, and mobile money in many countries.

Cash pickup is fast, often available within minutes, but it is more expensive than other payout methods. Bank transfers and mobile money can be cheaper, though delivery times may vary depending on the destination and local partners. Fees are generally higher than digital-first platforms, and exchange rates include a markup.

You can send money through the Western Union website, mobile app, or at a physical agent location. Online bank transfers are typically less costly than cash pickup, making them the better option when speed is not the top priority.

MoneyGram

MoneyGram operates across Africa with a large agent network, covering many urban and semi‑urban areas. The service allows recipients to collect cash quickly, often within minutes or a few hours, though timing can vary depending on the location.

Transfers can be sent online, via the MoneyGram app, or at agent locations, including major retailers. In addition to cash pickup, the platform supports bank transfers and mobile money in many countries. Fees for cash pickup are sometimes slightly lower than Western Union, but the cost depends on the sending corridor and payment method.

MoneyGram provides a reliable alternative for recipients without bank accounts or mobile wallets, while also offering multiple ways to receive funds for those who prefer digital options.

Mobile Money and regional platforms

Mobile money has transformed how people send and receive money in Africa. In several countries, more adults now have mobile money accounts than traditional bank accounts. This widespread adoption has made it easier to move money quickly, securely, and without relying on banks.

Mobile Money overview

Mobile money lets people receive, store, and spend money using just a mobile phone, without needing a bank account.

Major providers include M‑Pesa in Kenya and Tanzania, MTN Mobile Money across several countries, Orange Money in West Africa, and Airtel Money in multiple markets.

Most international transfer services now support sending money directly to mobile money accounts. This method is often faster and cheaper than using bank transfers or cash pickup, making it a popular choice for both senders and recipients in some countries.

Wave

Wave is a mobile money platform that operates in Senegal, Côte d’Ivoire, Burkina Faso, Mali, and Benin. Transfers from the US to Wave accounts typically carry no transfer fees. The exchange rate is the main cost for the sender.

Recipients need a Wave account to receive funds, and creating one is straightforward. Wave functions as both a transfer service and a mobile money wallet, allowing users to send, receive, and spend money through the app.

Coverage is currently limited to the West African countries where Wave operates, but within those markets, the platform is fast, simple, and easy to use.

Sending money to Africa is more efficient now than it was years ago. Digital platforms are driving down costs and forcing greater clarity in pricing. Whether you prioritise cost, speed, or convenience, there are options that fit your needs. Check fees and exchange rates before you hit send, and choose the right tool for your corridor and frequency.

As of 2023, over 350 million adults in Sub-Saharan Africa remain unbanked, even as more than 600 million people use mobile money. Yet, sending money across borders still comes with high friction and even higher costs; remittance fees average 8.2%, the highest globally.

Globally, momentum is building around Open Payments, with more than 40 financial institutions and digital wallets actively exploring or integrating the standard. Open Payments-enabled transactions are already taking place across over 60 countries, demonstrating its growing global reach. 

This article dives deep into the Open Payments standard, what it means for Africa’s digital future, and how the continent’s mobile-first innovation and youth-driven tech culture make it the ideal launchpad for a more inclusive financial system.

Introduction to Open Payments

Digital payments have come a long way, but they’re still more complicated than needed, especially if you’re sending money across borders, between platforms, or without a bank account.

Today, most people rely on third-party processors like PayPal or Stripe to handle payments. These work well, but they come with strings attached: high fees, long wait times, and limited control over how money moves.

Now imagine if making a payment online was as simple and open as sending an email. No matter which provider you use or where you are in the world, you’d just need the other person’s “address” and the payment would go through instantly.

That’s the vision behind Open Payments

Open Payments is an open standard powered by the Interledger Protocol (ILP) that allows money to move between different financial systems, just like the internet allows information to move between websites and devices.

At the heart of Open Payments is a simple idea: You should be able to send and receive money easily, regardless of what platform you’re using.

Here’s how it works, in plain terms:

1. Payment Pointers

Open Payments replaces long, complex banking details with something simple and human-readable called a Payment Pointer. Think of it like a username or web address for receiving payments—something like: $alice.wallet.com or $yourname.africa

A Payment Pointer is not a wallet address in the crypto sense. Instead, it points to a web-accessible endpoint (usually a URL) hosted by your financial service provider or wallet. When someone wants to send you money, their system queries this endpoint to discover how to complete the payment securely using the Interledger Protocol (ILP).

2. One Connection, Many Possibilities

Without Open Payments, every app or service you want to send money from has to build a separate connection to every possible bank, wallet, or mobile money provider. That’s a nightmare.

With Open Payments, a single integration gives you access to any provider that supports the standard. No need to write hundreds of custom APIs. Just one.

3. Secure, Consent-Driven Transactions

You’re always in control. When someone wants to send or pull funds from your wallet, they have to make a request, and you decide what’s allowed. You can approve a single transaction, set limits, or even authorize recurring payments with specific rules.

Think of it like granting Netflix access to charge your card monthly, but safer, more flexible, and not tied to credit cards at all.

4. No More Middlemen (Unless Necessary)

Open Payments reduces reliance on traditional intermediaries, which usually add fees and delays. If currency conversion or settlement routing is needed, the system finds the best path automatically using Interledger. But you’re not stuck paying unnecessary layers of fees just to send $10 across borders.

5. Works for Everyone, Not Just Banks

You don’t need a traditional bank to use Open Payments. Whether you’re using a mobile wallet, a crypto app, or a community savings platform, as long as your provider supports the standard, you’re in the network.

That’s a game-changer for billions of people around the world who are underbanked or unbanked.

The Current State of Open Payments in the World and Africa

As digital payments evolve, the global financial ecosystem is slowly but surely pivoting toward open, interoperable systems, and Open Payments is at the center of that transformation.

While adoption is still in its early stages, there is growing momentum around the world as both traditional financial institutions and fintech innovators begin to embrace the Open Payments standard and the Interledger Protocol (ILP).

A Growing Global Ecosystem

Open Payments is not a product—it’s an open standard. This means any institution, app, or wallet can adopt it without licensing fees or proprietary gatekeeping. And while we’re still early in the adoption curve, some notable players and platforms have already taken the lead.

• GateHub: One of the first digital wallets to support Open Payments globally. It facilitates cross-currency transactions using ILP and offers payment pointer functionality.
• Fynbos: A wallet provider in South Africa, Europe, and North America that enables Open Payments transfers between Fynbos accounts, with future plans to connect with other networks like GateHub.
• Interledger Pay: A live implementation that lets users send and request money using wallet addresses, showcasing Open Payments’s ability to work across platforms.
• Chimoney: A Canadian Fintech company has integrated Open Payments to enable seamless wallet-to-wallet transfers via Interledger payment pointers. More than just a wallet, Chimoney allows payouts to over 120 countries, supporting a wide range of disbursement options, including bank accounts, mobile money, and gift cards. This global reach demonstrates how Open Payments can be embedded within large-scale financial systems to deliver inclusive, programmable, and borderless payouts.

These early implementations are proof of concept for what’s possible, but widespread adoption still requires deeper integration by banks, mobile money providers, and governments.

Current Metrics and Trends

• As of early 2025, over 40 financial services companies have expressed interest or are in the process of integrating Open Payments.
• Open Payments-enabled transactions have occurred in over 60 countries, primarily through test wallets and early-adopter platforms.
• Payment pointers—human-readable wallet addresses—have been issued to tens of thousands of developers through tools like the Interledger Test Wallet and GitHub starter kits.
• The Interledger Foundation has announced over $21 million in investments and strategic partnerships to expand interoperable payment solutions globally, signaling a growing institutional commitment to Open Payments and its ecosystem.
• Developer interest is surging: repositories like interledgerjs and open-payments have seen significant spikes in stars, forks, and community contributions since mid-2024.

This traction is being driven in part by the protocol’s promise of cost savings, security, and inclusivity, especially in low-income and underbanked regions.

The Situation in Africa

Africa has long been a leader in mobile-first financial innovation. Yet, despite the success of mobile money platforms, the continent still grapples with fragmented financial infrastructure, high remittance fees, and lack of interoperability across borders.

This makes Africa a prime use case for Open Payments.

• 600 million mobile money users across Sub-Saharan Africa.
• 8.2% average remittance fee to Sub-Saharan Africa.
• 350 million unbanked adults in the Sub-Saharan African Region, with most relying on informal savings groups or community wallets.
  

Today, even leading mobile money systems like M-Pesa, MTN Mobile Money, and Airtel Money still require closed-loop integrations. This means a user on one platform can’t always send funds to someone using another unless they pass through banks or costly intermediaries.

Open Payments offers a compelling alternative. By introducing a standardized way to send money across providers, it reduces friction, lowers costs, and boosts access.

While there are no fully live, cross-provider Open Payments deployments in Africa yet, wallets like Fynbos in South Africa and Open Payments-based projects led by African developers are laying the foundation.

The Unique Opportunity for Africa

Africa has always done things a little differently when it comes to money. While the West focused on banks and cards, Africa leapfrogged into mobile money. That’s how platforms like M-Pesa became household names and helped millions send, spend, and save without ever stepping into a bank.

But here’s the problem: most of these systems don’t talk to each other.

You can’t easily send money from your mobile wallet in Nigeria to someone’s bank account in Ghana. Even within the same country, users on different platforms often have to jump through hoops to transfer funds. It’s like trying to send an email from Gmail to Yahoo and needing five apps to do it.

That’s where Open Payments changes the game.

Why Africa is the perfect place for Open Payments

1. Cross-border is our daily life
   Africa is made up of 54 countries, and millions of people live, work, and trade across borders. Whether it’s traders in Cotonou sending money to Lagos or a freelancer in Nairobi getting paid from the UK, cross-border payments aren’t a “nice to have”—they’re essential. Open Payments is built exactly for that: simple, low-cost, borderless payments.
2. Mobile-first means we can move fast
   Most Africans already use mobile wallets. With Open Payments, these wallets can be upgraded to speak the same financial language without replacing them. It’s not about building something new from scratch. It’s about connecting what we already have.
3. A young, tech-savvy generation
   With the continent’s median age at just 19, Africa has the youngest population on Earth, and that means a lot of builders, developers, and early adopters ready to shape the next wave of fintech.

This is a generation that already uses crypto, virtual cards, social commerce, and gig platforms. Open Payments is the natural next step—a tool that matches their global mindset.

What makes Open Payments so powerful for Africa?

• No more vendor lock-in: A wallet or app that supports Open Payments can connect to any other one that does, too. Users aren’t stuck with one provider.
• Fewer fees, more control: By cutting out unnecessary middlemen, Open Payments reduces costs and gives users more transparency on who gets what.
• One wallet address, many use cases: Just like an email address, users can share a wallet address and get paid from anywhere (apps, websites, employers, family abroad).
• It works across banks, wallets, and mobile money: Open Payments isn’t tied to a single network. Whether it’s a bank in Lagos or a mobile wallet in Kigali, it all just works if it’s built on the standard.
  

Early Market Impact and Case Studies

Open Payments isn’t just a promising idea, it’s already being used to solve real financial problems for real people. Across Latin America, the Caribbean, Africa, and Asia, developers, startups, and even government-backed platforms are building practical tools powered by Open Payments.

Here are some of the examples of how Open Payments is changing lives, facilitating financial inclusion, and empowering and growing businesses today:

BessPay – Helping Creators Get Paid Instantly

In the Caribbean, BessPay is reshaping how digital creators earn income. Instead of waiting 30 days for payouts or losing up to 30% in platform fees, creators using BessPay are receiving earnings instantly through Open Payments and payment pointers. 

The platform supports real-time micropayments, tipping, and content monetization tools that allow creators to cash out in local bank accounts, mobile money, or digital wallets. Early adopters have seen a 40% increase in revenue retention, as BessPay puts power and profit directly in the hands of its users.

Snake Nation – Decentralizing the Creator Economy

Snake Nation, a platform built for multicultural creators across Africa and Latin America, has integrated Open Payments into its VNM wallet to decentralize the creator economy. By removing intermediaries and empowering artists to receive direct payments from their fans, 

Snake Nation has enabled real-time tips, paywalled content, and creator tokens—all powered by Interledger. Thousands of creators have already benefited from instant settlements across borders, and the platform continues to grow its user base with a mission to help artists thrive financially regardless of their geography.

ThitsaWorks – Bringing Digital Payments to Rural Myanmar

In Southeast Asia, ThitsaWorks has tackled financial exclusion in Myanmar by digitizing rural microfinance institutions through Open Payments and Mojaloop.

With over 2 million rural users connected, ThitsaWorks’ solution automates loan disbursements and repayments via mobile wallets and bank integrations.

The system has reduced loan processing times by over 50% and made financial services more accessible for users who had previously relied on cash transactions.

Their integration with Mojaloop also opens the door to cross-border transactions, improving financial resilience in economically vulnerable regions.

Cámara de la Gente – Cross-Border Remittances for Rural Mexico

Cámara de la Gente in rural Mexico is leveraging Open Payments to power a cross-border remittance hub for small credit unions and community banks.

By reducing dependency on traditional remittance services, which often charge fees upwards of 8%, the platform has successfully cut costs by over 20% while enabling instant account-to-account transfers.

This innovation is particularly impactful in rural towns where access to digital banking remains limited, giving families faster and more affordable ways to receive support from loved ones abroad.

CryptoSavannah – Loyalty Programs, Reimagined

In East Africa, CryptoSavannah is rethinking how loyalty rewards work. Instead of letting loyalty points sit unused, their Universal Wallet enables customers to earn, transfer, and redeem rewards across a network of partner merchants.

Built on ILP and Open Payments, the platform supports multi-format value, including fiat, crypto, and store credit.

Since the launch, participating retailers have reported a 2x increase in loyalty point redemption rates and improved customer retention, thanks to the flexibility and interoperability of their rewards system.

Mojaloop – Government-Grade Open Payments Infrastructure

Finally, Mojaloop is serving as the national-grade infrastructure layer for Open Payments in countries like Tanzania, Rwanda, and Myanmar.

Through partnerships with governments, central banks, and financial service providers, Mojaloop has facilitated billions of dollars in financial flows while enabling seamless transactions across banks, wallets, and MFIs.

Its integration of Interledger allows for cross-ledger interoperability, and its deployment has driven significant improvements in financial inclusion, particularly among unbanked and underbanked populations.

Challenges and Barriers to Fully Implementing Open Payments in Africa

As promising as Open Payments is for financial transformation, the road to its widespread adoption in Africa is filled with friction. Below are the major barriers slowing progress, each rooted in a unique blend of infrastructure gaps, regulatory complexity, and user behaviour:

1. Weak Digital Infrastructure

Many African regions, especially rural areas, lack consistent Internet access and mobile coverage. Open Payments thrives on low-latency, always-on connectivity, but with only 43% internet penetration continent-wide, real-time financial services remain out of reach for millions. Slow networks and frequent power outages make reliable access to wallets and APIs a significant challenge.

2. Regulatory Uncertainty

Open Payments operates across borders, platforms, and financial layers, but most African countries still don’t have policies that reflect this reality.

While Nigeria has introduced Open Banking regulations, the majority of other nations are either stuck in sandbox mode or still adapting legacy laws. This creates hesitation among banks, FinTechs, and wallet providers, who fear running afoul of compliance rules.

3. Trust and Data Privacy Concerns

Even when infrastructure is in place, user trust is another story. People are rightfully cautious about linking apps to their money, especially in environments where data breaches and financial scams are common.

Despite Open Payments offering explicit consent and granular control, the fear of “giving an app access to your account” remains a major psychological barrier.

4. Limited Incentives for Legacy Institutions

Large banks and incumbent financial service providers don’t always see the upside of embracing Open Payments. Many prefer to operate closed systems and charge high fees for access.

Since Open Payments prioritizes openness and interoperability, some institutions feel it threatens their business model. Without competitive pressure or regulatory nudges, adoption by these players may lag.

5. Low Awareness and Technical Literacy

The concept of Open Payments—wallet addresses, Interledger, GNAP (Grant Negotiation and Authorization Protocol) is still new to many businesses, developers, founders, and users.

Financial literacy remains low in many communities, and technical understanding among SME owners and local agents is still developing. Without grassroots education and easy-to-use tools, even the best technology won’t gain traction.

6. Persistent Financial Exclusion

As of 2023, over 350 million adults in Sub-Saharan Africa are still unbanked. While mobile money has made impressive strides, it doesn’t fully bridge the gap. Open payments require at least a digital wallet or interoperable account. For people without access to identity verification, smartphones, or formal onboarding channels, this is a non-starter. The foundation for access must be laid before innovation can scale.

My Perspective on Open Payments

Over the past year, my journey with Open Payments has led me to several realizations that shape not only how I view financial infrastructure but how I believe we should build it. Here’s my perspective distilled into key insights:

1. Open Payments is not just a technology—it’s a mindset shift

This is a departure from proprietary rails and fragmented systems. It’s about reimagining financial infrastructure as open, interoperable, programmable, and inclusive—the way email revolutionized communication.

2. It empowers both users and developers

With Open Payments, users control who can access their accounts, what they can do, and for how long, without exposing sensitive information. At the same time, developers no longer need to build complex, one-off integrations. One protocol, one standard, many use cases.

3. It lowers the barrier for innovation

Startups, NGOs, and indie developers can now build payment-enabled apps without becoming licensed financial service providers. This radically changes who can build in the financial space and what they can build.

4. It’s already real, and it’s already working

Throughout my 30 Days of Open Payments series, I showcased real-world case studies, wallets using payment pointers, apps using Interledger, and communities benefitting from reduced transaction friction. This isn’t hype; it’s already happening.

5. Education is key to adoption

In my session titled “Open Payments Made Simple—No-Code Solutions and Open-Source Innovations,” presented physically at Microsoft Reactor DevConnect  2025, I introduced over 100 participants, including open source enthusiasts, non-technical professionals, and developers, to the power and simplicity of Open Payments. The session demonstrated how anyone, regardless of technical background, could begin building financial tools using open standards and no-code platforms. Once people realized how accessible the technology is, a wave of interest and experimentation followed, proving that demystifying the protocol is the first step to widespread adoption.

6. Africa is poised to lead this revolution

We’ve already leapfrogged outdated infrastructure with mobile money and digital wallets. Open Payments gives us the chance to leapfrog again into borderless, low-cost, accessible financial ecosystems.

7. My mission is to bridge knowledge and action

Through my workshops, articles, and daily content, I aim to translate complex standards into usable ideas for businesses, developers, founders, and policymakers. My goal is to make Open Payments not just understandable but actionable.

The Future of Open Payments

The world of payments is shifting, and Open Payments is at the heart of this transformation. In the next five years, we won’t just talk about interoperability and financial inclusion; we’ll live it.

Imagine a future where sending money from Lagos to Lima is as easy as sending a tweet. Where a teenager in Nairobi can get paid instantly for designing a logo for a startup in Berlin. Where a nonprofit in Accra receives donations from supporters in Tokyo without paying 12% in fees to legacy platforms. This is not just possible—it’s inevitable.

Open Payments is laying the foundation for a wallet-to-wallet world. A world where financial applications speak a universal language, where developers build once and scale globally, and where people—not institutions—control the flow of their money.

We’re moving toward a future where:

• Wallet addresses become your global financial identity, recognized across apps, platforms, and borders.
• Microtransactions flourish, powering new economies from creators getting paid per view to learners tipping educators.
• Developers build plug-and-play financial apps without needing banking licenses or backend acrobatics.
• Startups from underserved regions compete on equal footing with Silicon Valley, thanks to infrastructure that no longer discriminates based on geography.
• Consent, transparency, and security aren’t features—they’re defaults. Users decide who can access their money, when, and how much.

But here’s the most exciting part: Africa isn’t catching up; we’re positioned to lead. Our mobile-first ecosystems, youth-driven innovation, and demand for financial alternatives make the continent a natural breeding ground for Open Paymentss breakthroughs. What M-Pesa was to mobile money, Open Payments could be to the next generation of financial technology across the continent.

This isn’t a distant dream. We’re building it now. From Interledger-enabled wallets in South Africa to developer workshops in Nigeria to early-stage adoption in Ghana, the ecosystem is growing. Standards are maturing. Communities are forming. Builders are shipping.

The rails of global finance are being rewritten, and Open Payments is the ink. So whether you’re a policymaker, product manager, backend engineer, or founder, the invitation is open. Open to build. Open to innovation. Open to include.

The question is no longer if Open Payments will shape the future—it’s who will shape Open Payments.

And if you ask me, it should be us.

About the Author

Babatunde Hammed is a seasoned professional with a rich blend of expertise in operations, project management, business development, and compliance. With a proven track record of optimizing business processes and delivering strategic growth, he has made significant contributions to global organizations, particularly in the fintech and Open Payments space.

As the Head of Operations at Chimoney, Babatunde plays a pivotal role in transforming the way people send, receive, and manage money across borders. He leads cross-functional initiatives focused on enabling financial inclusion, ensuring compliance with global regulatory frameworks, and scaling secure payment infrastructure. His work sits at the powerful intersection of finance, technology, and policy.

Beyond his operational leadership, Babatunde is a passionate advocate for Open Payments. He is deeply committed to educating developers, non-technical professionals, founders, and policymakers on the transformative potential of open financial systems.

When Musa needed a loan to expand his small electronics shop, he easily applied online and received the funds within hours. His access to financial services has allowed him to grow his business, support his family, and plan for the future.

In contrast, Amina lives in a rural village in northern Ghana. Her daily life is far more constrained.

When she sells her goods at the local market, her earnings are stored in cash, leaving her vulnerable to theft or loss. She has no formal safety net if her child gets sick or her crops fail.

Amina cannot save effectively or borrow to invest in her farm without access to a bank or mobile money services.

Her financial world is limited by geography and the lack of infrastructure that connects her to the wider economy.

These two lives, separated by a few hundred kilometers, illustrate Africa’s stark financial access divide. While city dwellers like Musa benefit from modern financial services, millions of rural Africans like Amina remain excluded from the formal financial system.

This gap in access is a barrier not only to individual prosperity but also to the overall economic development of the continent.

Globally, about 1.4 billion adults remain unbanked, with Africa home to a significant portion of this population.

Financial exclusion is even more pronounced in Africa, where over 60% of the adult population cannot access basic financial services such as savings, credit, or insurance.

The unbanked are often cut off from participating in the formal economy, unable to build wealth or fully engage in economic activities.

The exclusion stems from a lack of accessible financial infrastructure, insufficient literacy, and geographical barriers. For instance, in many rural parts of Africa, bank branches are scarce or non-existent, making it nearly impossible for individuals to open accounts, apply for loans, or even make basic transactions.

How Mobile Technology is Closing the Gap

In recent years, mobile technology has dramatically changed the financial landscape in Africa. Mobile money platforms like M-Pesa in Kenya and MTN Mobile Money in West Africa have made it possible for millions to transfer money, save, and even access loans and insurance services without needing a traditional bank account.

As of 2022, over 350 million people in sub-Saharan Africa were using mobile money services, representing more than 60% of the world’s mobile money transactions.

These platforms have effectively extended the reach of financial services to the previously unbanked, particularly in rural and underserved areas.

With mobile money, people can receive remittances from family members abroad, pay school fees, start small businesses, and gain access to basic health insurance.

This innovation has allowed for a more inclusive financial system, reducing barriers for those traditionally marginalized by banks.

However, while mobile players have made significant strides, the cost of infrastructure and regulatory limitations still pose challenges.

Despite the advances in mobile financial inclusion, the cost of building and maintaining infrastructure continues to leave millions excluded. In countries with vast rural populations and weak infrastructure, setting up physical banking services or even mobile money networks can be prohibitively expensive.

Network providers face high costs to extend their reach into remote areas where populations are sparse and incomes are low.

Without government subsidies or incentives, there is little business case for expanding financial services into these regions. Consequently, many are left reliant on informal financial systems, which are often insecure and inefficient.

Additionally, the digital divide exacerbates financial exclusion. Even though mobile technology is widely adopted, there is still a gap in smartphone ownership and internet access, further limiting access to more advanced financial services that require smartphones or mobile apps.

A Path Toward Broader Financial Inclusion

One potential solution to these challenges lies in white labeling. White labeling is when a product or service is created by one company but rebranded and distributed by another.

In the context of financial inclusion, white-label banking solutions can allow local trusted entities—such as cooperatives, community groups, or even telecom companies—to offer financial services without having to build the technology or infrastructure themselves.

Leveraging existing trust networks in local communities is far more effective than relying solely on large financial institutions or fintech companies to close the gap.

Instead of creating a few large companies that dominate the financial landscape, white-label services can be distributed more broadly, allowing smaller entities to reach deeper into rural areas and marginalized populations.

For example, community-based savings groups in rural areas could use a white-label mobile banking platform to offer their members savings accounts, loans, and insurance, tapping into a network that already has the trust and engagement of the local population.

This type of solution would drastically reduce the cost and complexity of providing financial services to the underserved.

Greater Access Benefits All

The economic benefits of financial inclusion are significant, both for individuals and for the economy as a whole.

For individuals, access to financial services enables savings, investment, and risk management. With the ability to save, people can build up capital over time, which they can then invest in starting businesses, buying property, or funding education.

Access to credit allows individuals and small businesses to smooth cash flow and seize growth opportunities, while insurance helps people manage risks and recover from financial shocks.

At a macroeconomic level, financial inclusion stimulates economic growth. By bringing more people into the formal economy, financial inclusion increases the flow of capital, boosts consumption, and creates jobs.

According to research by the International Monetary Fund (IMF), countries with higher levels of financial inclusion tend to have higher GDP growth rates.

A World Bank report noted that countries with broad financial inclusion enjoy lower poverty rates and less income inequality.

For Africa, where small and medium-sized enterprises (SMEs) contribute up to 90% of all businesses and more than 50% of employment, access to finance is essential for unlocking growth potential and driving economic development.

Furthermore, financial inclusion enhances financial stability by spreading financial risk across a broader section of the population and economy.

When more people and businesses are included in the formal financial system, the economy becomes more resilient to shocks like natural disasters or financial crises.

This is because formal financial institutions are better equipped to manage risk than informal lenders or unregulated markets.

Financial inclusion is not just a moral imperative; it’s an economic necessity. By ensuring that everyone, regardless of income or geography, has access to financial services, we can create wealth at the individual level and stimulate economic growth at the national level.

While mobile technology has made significant progress in closing the financial inclusion gap, there is still much work to be done.

High infrastructure costs and the digital divide continue to leave many excluded, but innovative solutions like white labeling offer a promising path forward.

By leveraging existing trust networks and local institutions, we can bring financial services to even the most remote corners of Africa and unlock the continent’s full economic potential.

Ultimately, greater financial inclusion will benefit not just individuals but also the broader economy, creating a virtuous cycle of growth, wealth creation, and prosperity.

*Ajibola Awojobi is the founder of BorderPal