MFS Africa now reaches over 320 million mobile money wallets

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an-African fintech MFS Africa has now reached over 320 million mobile money wallets. This means that the company covers 60% of all mobile money wallets in sub-Saharan Africa, according to data from GSMA.

Sub-Saharan Africa is the most developed market for mobile money, accounting for around two-thirds of global mobile money transactions in 2020.

Mobile money initially rose to prominence in Africa in 2007 when M-PESA launched. The mobile money wallet was the first of its kind on the continent, helping the unbanked access financial services.

M-PESA began as a SACCO loan disbursement and repayment tool but quickly took note of customer behaviour, revamping its product as a money remittance tool. And as a result, the mobile wallet is still dominant today.

With this growing market, there remains a huge opportunity to encourage entrepreneurship and growth.

However, more complex transactions, such as those across borders or involving distinct financial institutions, can be costly and inconvenient for African consumers and businesses.

The high cost of remittances on the continent (8.9% in the last quarter of 2019) is just one example. MFS Africa’s payments platform connects a range of businesses and institutions across the continent. And it creates new pathways for mobile money payments and financial services.

For instance, MFS Africa recently led a $2.3m seed round investing in Ugandan fintech start up Numida. Numida aims to help small businesses in Africa to gain access to credit and financial services.

The last time MFS Africa invested in a fintech was in June 2020, when the company acquired Ugandan start up Beyonic for an undisclosed amount. This could mean that a similar play is on the horizon.