The tide of digital payments sweeping across Africa has now reached the shores of Central Africa — but not without complications. US-founded fintech Wave has officially secured a foothold in Cameroon, but just as it prepares to scale, a tightening regulatory noose could complicate its path.

Since June 11, 2025, Wave has been authorized to operate in Cameroon, through a partnership with Commercial Bank Cameroon (CBC), one of the country’s established banking institutions. The approval, formalized by a decision from Yvon Sana Bangui, president of the Central African Banking Commission (COBAC), allows CBC to offer payment services under the “Wave” brand in partnership with Wave Transfer SA.

Under the arrangement, CBC will provide a range of payment services branded as Wave, including cash deposits and withdrawals, person-to-person transfers, bill payments, and even cross-border transfers — excluding, notably, mobile money issuance. The offering will initially target CBC’s customers, adding a new player to Cameroon’s increasingly competitive digital payments scene, long dominated by telecom-led mobile money operators like MTN and Orange.

But just as Wave was preparing to gain momentum, it now faces a larger obstacle: a sweeping fintech directive from Cameroon’s Ministry of Finance that could upend the market altogether.

In a formal notice signed by Finance Minister Louis-Paul Motaze earlier last month, the Cameroonian government gave all fintech companies operating in the country just under three months to obtain formal licenses or cease operations entirely. The order mandates that companies providing mobile payments, credit services, money transfers, or fundraising activities must receive authorization from the Ministry as licensed payment institutions by August 2025 — or face closure under CEMAC financial regulations.

“Certain companies are providing financial services without the approval of competent authorities,” the directive reads, citing violations of Article 84 of the CEMAC financial regulation adopted in 2018.

While Wave’s partnership with CBC provides it with institutional cover — commercial banks already fall within COBAC’s purview — the broader directive casts a long shadow over the entire fintech ecosystem in Cameroon. It specifically warns public agencies, licensed payment providers, and businesses to terminate relationships with any unlicensed fintech entities immediately.

For many startups operating in Cameroon’s gray regulatory zone, this development may force tough choices between full formalization, costly compliance, or an exit.

Cameroon’s move mirrors an emerging regional trend. A month earlier, the Central Bank of West African States (BCEAO) — the regulator for the eight-member West African Economic and Monetary Union (WAEMU) — initiated its own regulatory crackdown on unlicensed fintechs across countries like Senegal, Côte d’Ivoire, and Mali. That enforcement wave sparked widespread disruptions: payroll systems froze, digital wallets failed, and transactions ground to a halt for thousands of consumers.

Despite an 18-month rollout period, the BCEAO had licensed only 11 payment institutions by late May 2025, leaving hundreds of fintechs operating in legal limbo. The regulatory bottleneck sparked investor frustration, delayed funding rounds, and forced startups to temporarily suspend operations.

The BCEAO eventually bowed to pressure, extending the compliance deadline to August 31, 2025 — but with the warning that no further leniency would be granted.

Cameroon’s Ministry of Finance appears to be taking lessons from that experience. By proactively setting a compliance deadline, the government aims to avoid the sort of regulatory confusion seen in WAEMU markets. Yet questions remain about whether CEMAC’s regulators, including COBAC, have the capacity to process applications at the speed demanded by Cameroon’s digital economy.

Wave’s Cameroon entry is strategic. While fintech headlines in Africa often focus on Nigeria, Egypt, or Kenya, Cameroon represents an overlooked but increasingly valuable payments market. The country dominates mobile money usage in Central Africa, accounting for 71% of all mobile money transactions in CEMAC, according to the latest available data from the Bank of Central African States (BEAC). In transaction value, Cameroon commands over 55% of the regional total, moving more than 59,000bn CFA francs (€90bn) in mobile transactions in 2022 alone.

For Wave, known for its low-fee, mobile-first services, tapping into this volume represents a significant growth opportunity. But because the “Wave” services offered via CBC do not include direct mobile money issuance, the partnership is structured to fit neatly within existing banking regulations.

Still, the distinction may not shield the rollout from disruption if the fintech directive triggers broader market uncertainty. While CBC is licensed, any future ambitions Wave might have of operating independently or expanding into full-scale e-money services would require direct licensing through the Ministry of Finance under the current framework.