Five months after the Central Bank of West African States (BCEAO) officially activated its ambitious regional instant payment system, the landscape of West African fintech remains a house divided. While traditional banks and microfinance institutions are flocking to the Interoperable Platform for Instant Payment Systems (PI-SPI), the region’s two most dominant players — US-backed unicorn Wave and telecom giant Orange Money — appear to be navigating a complex dance of strategic holdouts and regulatory compliance.
The PI-SPI, launched on September 30, 2025, was designed to be the “Great Connector” for the eight-nation West African Economic and Monetary Union (WAEMU). The goal was simple: allow any citizen to send money from a bank account in Togo to a mobile wallet in Mali instantly and for free. But as the system matures, the very companies that pioneered digital finance in the region are being accused of “circumventing” its spirit to protect their bottom lines.
The “Poisoned Chalice” of Free Transfers
The most vocal criticism has centered on Orange Money, particularly in Senegal. While the company claims full compliance with the BCEAO’s rules, users and lawmakers argue that the “free” transfers mandated by the platform have been offset by a stealthy hike in withdrawal fees.
The controversy reached its height last week when MP Saliou Ndione publicly confronted the operator. Ndione alleged that Orange Money has effectively transformed a regulatory win for consumers into a commercial opportunity.
“The mechanism is simple: instead of paying 0.8%for sending, customers now pay 1% for withdrawals,” Ndione noted. “Since free transfers are already guaranteed through this infrastructure, Orange Money can no longer charge for sending. The strategy consists of shifting charges to withdrawals, which were previously free.”
Orange Money’s official stance is that the fee structure is a nudge toward a “cashless” society. In a response to the inquiry, the company stated:
- Transfers between Orange Money accounts: Free.
- Withdrawals: 1% fee (capped at 5,000 CFA francs).
- Merchant and Bill Payments: Free.
- The Goal: To encourage digital usage without requiring systematic physical withdrawals.
However, for a region where the informal economy still relies heavily on cash, the 1% withdrawal fee is viewed by many as a “regulatory detour” that keeps the ecosystem closed.
The Absentees: Strategy or Setback?
When the PI-SPI launched, the “guest list” of authorized institutions was notable for its omissions. While Coris Bank and Ecobank were quick to integrate across all eight member states, heavyweights like Wave and MTN MoMo were conspicuously absent from the initial cohort of 31 providers.
Five months later, the list has expanded to over 70 participants, yet the integration of these “disruptors” remains uneven. For Wave, a company built on a $1.7bn valuation and a promise of radical simplicity, the PI-SPI presents a double-edged sword:
- The Opportunity: Access to the deposits held in traditional banks (a long-time hurdle for fintechs).
- The Threat: The loss of its “closed-loop” advantage. If every bank app can now do what Wave does for free, Wave’s competitive moat shrinks.
| Provider | PI-SPI Status (Feb 2026) | Primary Revenue Strategy |
| Traditional Banks | High adoption (BOA, Coris, UBA) | Transaction fees & Float |
| Orange Money | Absent but claims compliance (with fee shifts) | Ecosystem lock-in & Withdrawal fees |
| Wave | Absent | High-volume, low-margin transfers |
| Microfinance | Rapidly Joining (Baobab, Cofina) | Financial inclusion for rural areas |
The Integration Paradox
The fintech giants are currently fighting a battle for relevance as traditional banks use the PI-SPI to launch a counter-offensive. Armed with the new infrastructure, banks are beginning to offer the same “instant” and “low-cost” features that were once the exclusive domain of fintech disruptors.
The absence of major players like Société Générale and UBA from the initial stages also suggests that the path to full interoperability is as much a technical hurdle as it is a strategic one. For a system meant to connect hundreds of disparate financial institutions, the speed of adoption by the “old guard” banks has actually outpaced the agility of the “new school” fintechs.
As the PI-SPI gains ground, the market is splitting into two camps: those embracing the open ecosystem to capture new transaction volumes, and those attempting to preserve their closed networks through fee restructuring.
For the West African consumer, the promise of a truly borderless payment zone is closer than ever, but the final mile — converting those digital credits into affordable cash or usable currency — remains a battleground of “transparency and dialogue.”