The West African Economic and Monetary Union (WAEMU or Union Economique et Monétaire Ouest Africaine (UEMOA)) has made significant strides in its quest to modernize financial services. In a major development, 65 additional financial institutions across Francophone West Africa have joined the pilot phase of the UEMOA’s interoperable instant payment system, bringing the total number of participants to 90.
The expansion of the network, which includes a diverse range of institutions such as banks, mobile money operators, and decentralized financial systems, is expected to revolutionize the way individuals and businesses conduct transactions within the West African economic union.
Given the region’s reliance on remittances and cross-border trade, the potential impact of an interoperable instant payment system cannot be overstated. It is poised to reduce transaction costs, improve the speed of cross-border transfers, and support the formalization of informal financial transactions.
The West African Economic and Monetary Union (Union Economique et Monétaire Ouest Africaine, UEMOA, in French) includes Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo.
How it works:
Interoperability means that different digital systems, apps, and databases can connect and talk to each other. Payment platforms use financial technology to share data between banks, payment gateways, processors, merchants, and consumers.
The new system, operational 24/7, allows for real-time, round-the-clock transactions of any kind, regardless of the account type. This means that users can send and receive money instantly, making it easier to pay for goods and services, transfer funds to loved ones, and manage their finances across Francophone West Africa.
Benefits of the Instant Payment System:
- Increased financial inclusion: By making financial services more accessible, the system is expected to bring millions of unbanked and underbanked individuals into the formal financial sector.
- Enhanced efficiency: Instant payments reduce the time and cost associated with traditional payment methods, making it more convenient for both consumers and businesses.
- Stimulated economic growth: By facilitating trade and investment, the system is expected to contribute to economic growth and development in the region.
- Strengthened regional integration: The interoperability of the system promotes cross-border transactions, deepening economic ties between UEMOA member states.
What’s next?
The current pilot phase will allow the Central Bank of West African States (BCEAO) to thoroughly test the system and ensure that it meets the highest standards of security and reliability. Once the pilot phase is successfully completed, the system will be rolled out to the public, offering a wide range of new and innovative financial services.
The expansion of the UEMOA’s instant payment system is a testament to Francophone West Africa ’s commitment to financial innovation and digital transformation. As the system continues to evolve, it is expected to play a central role in shaping the future of finance in West Africa.
List of Participating Institutions by Country:
Benin
- Ecobank
- MTN
- Orabank
- UBA
- CORIS BANK
- BOA
- MOOV
- CBAO
Burkina Faso
- Ecobank
- Orabank
- UBA
- BCB
- COFINA
- CORIS BANK
- Baobab
- BOA
- Orange Finances Mobile
- ACEP
- CBAO
Côte d’Ivoire
- Ecobank
- Mansa Bank
- MTN
- Orabank
- UBA
- SIB
- Guaranty Trust Bank
- Bank of Abidjan
- Baobab
- Bridge Bank
- Orange Bank
- BMS
- CORIS BANK
- COFINA
- FINELLE
- Société Générale
- BOA
- Orange Finances Mobile
- BNI
Guinea-Bissau
- Banco Da União
- Ecobank
- Orabank
- CORIS BANK
Mali
- BCI
- Ecobank
- Orabank
- BIM
- SAMA Money
- Orange
- Baobab
- UBA
- BNDA
- BMS
- COFINA
- CORIS BANK
- BOA
Niger
- Ecobank
- Orabank
- CORIS BANK
- BOA
- CBAO
- Sonibank
Senegal
- BNDE
- Crédit International
- Ecobank
- FBNBank
- Mobile Cash
- Orabank
- ACEP
- Crédit du Sénégal
- Orange Finance Mobile
- BDK
- LBA
- Baobab
- UBA
- Crédit Mutuel du Sénégal
- COFINA
- CORIS BANK
- CBAO
- Société Générale
- BICIS
- BOA
- La Banque Outarde
- Crédit KASH
Togo
- Ecobank
- Orabank
- BIAT
- COFINA
- CORIS BANK
- SUNU Bank Togo
- BOA