MTN Côte d’Ivoire has eliminated withdrawal fees on its mobile money platform, a bold move that directly undercuts the core feature fintech unicorn Wave used to win over millions of customers across Francophone West Africa.

The change, announced this week, makes Côte d’Ivoire the first market where a leading mobile operator has scrapped withdrawal charges entirely. It comes at a sensitive moment: Wave has an active antitrust complaint against MTN, Orange and Moov before the Ivorian telecoms regulator, accusing the incumbents of blocking it from selling airtime on its platform.

For consumers, the fee cut is welcome. Withdrawals, once the priciest part of a transaction, are now free. For Wave, it poses a strategic dilemma. Free withdrawals were the cornerstone of its value proposition when it entered Senegal in 2020, forcing Orange to slash its own rates and triggering fee wars across the region. If incumbents now adopt the same pricing, Wave risks losing its most visible edge.

Regulatory battles in Abidjan and Dakar

Wave’s standoffs with incumbents are not confined to Côte d’Ivoire. In Senegal, it spent months in dispute with Sonatel, Orange’s local subsidiary, over access to APIs and distribution rights. The case was eventually settled by the telecoms regulator ARTP, which forced Sonatel to extend equal treatment to Wave.

In Abidjan, the story is still playing out. Since March 2024, Wave has accused the three main operators of anti-competitive practices, claiming they are protecting their own mobile money arms — Orange Money, Moov Money and MTN Money — by excluding Wave from the airtime market. The incumbents argue that selling airtime is a financial service outside the scope of telecom regulation. A decision by ARTCI is still pending.

The alignment of interests among the telcos has raised eyebrows: MTN and Orange even appeared at a regulatory hearing represented by the same lawyer. While not unlawful, it has reinforced perceptions that the operators are presenting a united front against Wave.

Fee wars reach Central Africa

The battle has spilled over into new geographies. In Cameroon, where Wave recently entered through a partnership with Commercial Bank Cameroon, MTN and Orange preemptively reduced withdrawal fees to 1% — a strategy designed to blunt Wave’s arrival before it could repeat the disruptive playbook of Senegal and Côte d’Ivoire.

Wave’s expansion into Central Africa is, in part, a hedge. With regulatory and competitive pressure mounting in its initial West African strongholds, pushing east allows it to diversify exposure. But the dynamics are strikingly similar: incumbent telcos cutting fees, regulators asserting control, and Wave having to fight for access to distribution.

A new payments infrastructure

The bigger test may soon come from regulators rather than competitors. On September 30, the Central Bank of West African States (BCEAO) will launch its long-delayed regional instant payment system (PI-SPI). The platform promises full interoperability between banks, microfinance institutions and mobile money operators across the eight-nation monetary union.

In practice, this means consumers will finally be able to move money instantly between a mobile wallet and a bank account — functionality Wave helped make popular. But with interoperability built into the system itself, the unique appeal of Wave’s free and fluid transfers could be diluted.

The BCEAO has also introduced tough new licensing rules, requiring all payment providers to secure direct authorisation by August 31, 2025. Only licensed entities will be permitted to operate on the new platform. For Wave and its peers, that adds a high-stakes regulatory deadline to an already crowded battlefield.

Is Wave under attack?

It is tempting to frame these developments as a coordinated assault. MTN’s 0% fees in Abidjan, the joint defence mounted by telcos in the Ivorian antitrust case, and the tightening rules from the BCEAO all converge to squeeze the startup. But incumbents are also defending profitable businesses, and regulators are responding to the need for oversight in a sector that has grown rapidly with limited controls.

What is clear is that Wave’s disruptive model is under pressure from multiple sides. The free withdrawal strategy that once distinguished it is now being copied. Regulators are setting stricter conditions for market access. And competitors are learning to fight preemptively, rather than reactively.

Wave’s expansion into Central Africa is part of its adaptation. But its future hinges on whether it can evolve beyond the model it pioneered — and build new advantages in a payments landscape that is rapidly shifting under its feet.