Latest news with #M-Pesa
Time Business News
15-07-2025
- Business
- Time Business News
How Banks & Fintechs Can Win Remittances with APMs
The global remittance market is booming. In 2024, remittance flows to low- and middle-income countries reached $656 billion, according to the World Bank. That's a massive opportunity. But here's the catch: your customers are no longer satisfied with old-school methods. They want faster, cheaper, and easier ways to send money. That's exactly where Alternative Payment Methods (APMs) come in. They are literally changing the remittance game. If you want to win in this fast-evolving market, you need to know how to use APMs to your advantage. And that's what we are going to do in today's blog. In this blog post, let's explore what APMs are and how they can take your cross-border remittance business to the next level. Are you excited? Let's spill the beans. APMs are non-traditional ways of transferring money. They include mobile wallets, QR codes, direct bank transfers, and other digital rails. Unlike cards and cash-based methods, APMs support faster and more affordable remittance flows. They give your customers the power to send and receive money anywhere, anytime, using methods they trust and use every day. Most importantly, alternative payment methods aren't just about convenience. They are essential if you want to stay relevant in today's remittance market. Okay, so now that we have brushed up on APMs, let's touch upon why traditional remittance models are fading away. The old cross-border remittance methods are no longer enough. Customers now expect speed, transparency, and lower fees. Here's why the traditional model is falling short. Traditional remittance often goes through multiple banks and intermediaries. And every step adds delays and costs. In many corridors, fees still go beyond 6%, which is way above the UN's 3% target. Supposedly, if your service is slow and expensive, then customers will look for faster and cheaper alternatives. Many people still don't have access to formal banking systems. They still have to follow traditional bank-to-bank transfers. And this limits your reach. On the other hand, mobile-first APMs like M-Pesa allow users without bank accounts to participate. If you stick to the old way, you're missing out on a huge untapped market. Winning in the remittance space means thinking beyond traditional rails. These strategies can help you stand out and grow faster. APMs help you go global without needing a physical presence. You can accept and pay out in local methods across countries, mobile wallets in Kenya, and QR in Brazil. This flexibility lets you offer true cross-border remittance services that match local preferences. Customers love it when they get to choose how they receive money. One of the main reasons for high cross-border remittance fees is the involvement of intermediaries. However, thanks to APMs. They reduce costs by eliminating intermediaries with the introduction of their direct channel. You can also avoid SWIFT fees and unnecessary currency conversions. That's one way to lower the costs and platform fees for your customers. Plus, when your operating costs drop, you can offer better rates to your users. That gives you a big edge over competitors. And yes, customers always notice the difference in fees. Customers expect real-time transfers, not next-day or three-day settlements. And APMs let you offer instant or near-instant delivery through modern rails. Moreover, APMs like PIX and Faster Payments make real-time remittance a reality. This boosts satisfaction, builds trust, and increases repeat transactions. Most users in Africa, Asia, and Latin America use mobile money daily. Many don't even have a traditional bank account. With APMs, you can reach these mobile-first users. Mobile wallets, USSD codes, and agent networks make your service accessible to everyone, not just the banked population. This further expands your customer base in a way that bank-only systems can't. Now comes the main part of any digital payment service: loyalty. It's a never-ending process, and the loop goes on and on. When you have a well-built platform that supports easy APM options, customers will definitely stick to your services. You should give your customers real-time updates. Plus, show fees upfront. Offer local language support. And make sure your service works on any device. To win with APMs, you need the right foundation. That means choosing a cross-border remittance platform that supports your goals. So here's what you should look for in a remittance software for seamless APM integration: Your platform should support mobile wallets, instant bank transfers, QR codes, and region-specific methods from the start. You shouldn't waste time doing separate integrations. The platform must handle it all under one roof. So, you must choose a provider who offers you easy and flexible integration into the system. You should choose a platform that connects smoothly with your existing systems. An API-first design helps you go live faster and scale quicker. On the other hand, interoperability ensures you can serve new corridors without technical headaches. Regulations vary across borders. A reliable platform helps you manage KYC, AML, and licensing requirements in every market you serve. This saves you time, avoids penalties, and builds trust with regulators. Your platform must support real-time transfers using APM rails. So you should look for providers with low-latency processing, instant payouts, and 24/7 uptime. That's the level of performance your users now expect. If you're still relying only on traditional remittance rails, you're holding your business back. You're missing out on faster settlements, wider global reach, lower costs, and millions of unbanked or mobile-first users who prefer APMs. Your customers want speed, flexibility, and transparency, and APMs deliver exactly that. By integrating them into your cross-border remittance platform, you not only meet expectations but exceed them. The future of remittance is already here; it's digital, interoperable, and APM-powered. Don't stay behind while others move forward. Choose smarter payment rails. Win the remittance market now. TIME BUSINESS NEWS
Zawya
04-07-2025
- Business
- Zawya
Africa: Regulating innovation, balancing act between stifling and destabilising markets
As the global conversation intensifies around the US push for financial deregulation, it is essential to contextualise what this means for Kenya and Africa at large. Could easing regulations be the key to unlocking innovation, financial inclusion, and economic growth? And, if so, to what extent?A compelling case study is Safaricom's M-Pesa—one of the world's first and most successful mobile money platforms. M-Pesa thrived because Kenyan policymakers adopted a progressive, flexible approach: They allowed innovation to lead, then developed regulation to support and safeguard it. This collaborative stance between regulators, policymakers, and the private sector enabled M-Pesa to flourish. Today, M-Pesa processes over 20 billion transactions annually and facilitates more than half of Kenya's GDP. It has transformed financial inclusion, with over 80 percent of the adult population using it for daily financial services—from money transfers and bill payments to savings, loans, and micro investments. This success catalysed fintech adoption across Kenya and inspired similar models globally. However, this innovation boom has also attracted unregulated players. Some operate outside the regulatory perimeter, offering risky investment schemes and easy credit products that expose consumers to financial harm. This underscores a critical truth: While overregulation can stifle innovation, unchecked innovation can destabilise markets and erode trust. This delicate balance is especially relevant as African regulators consider the implications of US policy shifts. The US financial system plays a dominant role in global trade, with most cross-border payments routed through US infrastructure for dollar clearing. Any regulatory changes in the US—particularly those affecting compliance, sanctions, or financial crime—can directly impact Kenya and other emerging markets. On one hand, a more flexible US regulatory environment could reduce compliance burdens, lower transaction costs, and improve access to global financial services. This would be a welcome relief for local institutions, many of which face high costs to meet US regulatory standards. On the other hand, deregulation in the US could also lead to increased volatility and capital flight, especially if it triggers a global shift in investment flows. The Trump 2.0 administration's deregulation agenda, rooted in the 'America First' doctrine, aims to make the US more attractive to investors by removing perceived barriers to business. This could draw foreign direct investment away from emerging markets, including Africa. For African policymakers, this presents both a challenge and an opportunity. It's a moment to reflect: How can African markets become more competitive and resilient? What reforms are needed to attract and retain investment?Key areas of focus should include strengthening governance and regulatory frameworks to ensure transparency and predictability; enhancing political and economic stability to build investor confidence; reducing bureaucratic and operational barriers to ease market entry and expansion; investing in digital infrastructure to support innovation and financial inclusion and protecting consumers and investors through robust oversight and enforcement. By proactively addressing these areas, African countries can position themselves as attractive destinations for global capital—without compromising financial stability or consumer protection. The M-Pesa story is a powerful reminder that innovation and regulation are not mutually exclusive. When approached thoughtfully, regulation can be a catalyst, not a constraint, for inclusive growth and sustainable development. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
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Business Standard
30-06-2025
- Business
- Business Standard
Watershed moments: How technology bolstered the financial inclusion
Govt started groundwork 50 yrs ago, but adoption and advancement of tech have sped up growth of financial services Mumbai Listen to This Article In 2017, when smartphone payments were making inroads across the world and Unified Payments Interface (UPI) was just a year old in India, a tiny African country was celebrating a decade of digital wallets. Launched in Kenya in 2007, M-Pesa showed the world how technology could put financial inclusion on a fast track. Back home in India, the government had started laying the groundwork for financial inclusion over five decades ago. But adoption of technology and its advancement have sped up the growth and deepened the reach of financial services. The early initiatives of financial inclusion started
Mint
19-06-2025
- Business
- Mint
How digital wallets are powering financial inclusion and credit access
How many of you know that digital wallets actually started in Kenya—launched by a telecom operator? It was called M-Pesa, and it became a lifeline for many, especially women working in far-off towns and cities. At the time, there were no formal or affordable systems for sending money home. People had to rely on others traveling back to their villages with cash, a method that was risky and unreliable. Vodafone, through its Kenyan subsidiary Safaricom, introduced a solution: a mobile wallet system. Every worker had a phone. Every family back home had one too. Using mobile SMS or a simple app, money could be transferred instantly. Family members could walk into a local shop (acting as an agent), show an ID, and withdraw cash. It was secure, fast, and didn't require a bank account. Years later, this same model made its way to India, especially to cities with large migrant worker populations from rural areas. While Vodafone didn't pioneer mobile money in India, Airtel did with Airtel Money, and Vodafone followed with M-Paisa. Soon after, players like MobiKwik, Paytm, Freecharge, and later PhonePe entered the space. For many Indians, especially in rural areas, these digital wallets became their first step into the formal financial system. Before that, sending money home often meant giving it to a co-worker or friend and hoping it arrived safely. Banks had little presence in remote geographies, and expanding there wasn't financially viable due to low transaction volumes. As a result, a new kind of financial ecosystem began to emerge. What started as peer-to-peer money transfers evolved into wallets enabling merchant payments, utility bill payments, and even micro-credit, by linking debit or credit cards to digital platforms. Today, nearly every adult owns a mobile phone. Teenagers, too, often have phones, given to them for education, safety, or communication. This widespread access has meant that even those who are illiterate or digitally inexperienced can make digital payments using simple apps or QR codes. Events like demonetisation in 2016 triggered a massive surge in digital wallet usage, as people scrambled to cope with the cash crunch. Later, during the COVID-19 pandemic, digital wallets and UPI became essential for contactless transactions, whether buying groceries or receiving wages. What began as a workaround for limited banking access has now become a core pillar of India's digital economy, enabling financial inclusion on a scale the country had never seen before. India is now one of the youngest nations in the world, with a massive population from Generation Z and Generation Alpha, many of whom will soon become credit-eligible. These digital natives have grown up using smartphones. For them, digital wallets and UPI have often been the first introduction to formal financial tools, laying the foundation for broader financial inclusion. Importantly, this digital adoption hasn't been limited to urban areas. Reports show that youth in deep rural geographies have also embraced digital payments, thanks to the accessibility and simplicity of platforms like UPI. Today, UPI is not just India's largest digital payment system, it also offers credit on UPI, expanding access even further. Driving this transformation is India's 'Digital Trinity', Aadhaar, mobile phones, and Jan Dhan accounts, which has brought even small merchants into the digital economy. This ecosystem has rapidly accelerated the adoption of digital transactions across the country. While India still faces challenges in infrastructure and access, it has leapfrogged in financial technology. From mobile wallets to real-time payments to credit on UPI, India has redefined what financial inclusion can look like, bringing millions into the formal economy in just a few short years. Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, legal, or professional advice. While every effort has been made to ensure accuracy, readers should verify details independently and consult relevant professionals before making financial decisions. The views expressed are based on current industry trends and regulatory frameworks, which may change over time. Neither the author nor the publisher is responsible for any decisions based on this content. Sachin Seth,Chairman CRIF High Mark and Regional MD CRIF India & South Asia
Business Insider
18-06-2025
- Business
- Business Insider
Africa's online casino boom: Insights and lessons from Finland's playbook
Africa's online casino and sports betting sector is surging, drawing keen interest from investors, regulators, and tech innovators. With millions across the continent now betting via mobile apps, websites, and betting shops, the growth is fueled by a young, tech-savvy population, expanding internet access, and the ubiquity of smartphones. This digital wave has made Africa one of the fastest-growing iGaming frontiers, with experts projecting annual growth around 5–6% through the rest of the decade. As connectivity improves and fintech solutions spread, online gambling platforms are reaching a widening audience. Crucially, many African bettors are leaping straight to mobile wagering – bypassing desktop computers entirely – thanks to affordable smartphones and innovative services like mobile money. (Kenya's M-Pesa, for example, made the country a ground zero for mobile payments in betting.) The stage is set for a boom in Africa's iGaming industry, but sustainable success will depend on smart regulation and user trust. The Digital Gambling Landscape: Nigeria and Beyond Across Africa, several nations have become hotspots for digital gambling. Nigeria, the continent's most populous country, exemplifies both the scale and the opportunity. A 2025 survey estimated that 71% of Nigerian adults have engaged in sports betting, translating to roughly 168 million individuals – the highest volume of bettors in Africa. In fact, some local agencies claim that as many as 60 million Nigerians place bets every day. This huge participation, driven by passion for football and other sports, makes Nigeria the second-largest gambling market in Africa by value. Industry estimates expect Nigeria's gambling revenues to reach $3.6 billion by 2025. Not far behind, Kenya and South Africa also boast vibrant betting scenes – in South Africa, up to 90% of adults gamble in some form, and Kenya sees nearly 84% of adults having tried betting. One common thread is mobile-first growth. In Nigeria, only about 36% of people enjoy traditional internet access, yet there are over 103 mobile subscriptions per 100 citizens. Similarly, Kenya has more mobile lines than people. This means the vast majority of African online gamblers are using phones to play, from placing sports wagers to trying digital casino games. Such widespread mobile connectivity, coupled with innovative payment solutions, enables even those in lower-income or remote areas to participate. The opportunity is massive: high volumes of low-stakes bets are the norm, and cumulatively they form a multi-billion dollar market. However, regulatory oversight varies by country. Nigeria's government, for instance, lifted a blanket gambling ban in 2004 and now regulates betting through the National Lottery Regulatory Commission. Yet enforcement challenges remain – unlicensed operators persist, and consumers have little legal protection when using those sites. This regulatory gap is both a risk and an opportunity: better oversight can increase tax revenue and player safety, while its absence could erode trust if players encounter fraud or unpaid winnings. Finland's Advanced Online Casino Model In contrast, Finland offers a case study of a mature, well-regulated market that prioritizes user experience and trust. Finnish players rank among the world's most active gamblers, and in recent years they have embraced ' no-account ' online casinos powered by Pay N Play technology. At these sites – known locally as 'pikakasinot' – players can start playing in seconds using their online bank credentials, without the hurdle of lengthy registration forms. The Pay N Play system, enabled by Finland's widespread online banking, pulls verified identity data from the user's bank through BankID, handling KYC (Know Your Customer) checks almost instantaneously. This means Finnish gamblers enjoy lightning-fast sign-ups, instant deposits and withdrawals, and a gaming experience that's both seamless and secure. Crucially, this bank-based verification maintains strong security while eliminating the need to submit additional documents in most cases. It also helps operators monitor transactions in real time, a feature that has been used to promote responsible gambling by flagging unusual spending patterns. Beyond convenience, Finland's online casino sphere is built on trust and robust regulation. For decades, gambling was run through a state monopoly (Veikkaus), which ensured all legal gaming was tightly controlled. However, as digital platforms proliferated, Finnish punters increasingly turned to international online casinos offering greater variety and ease. By 2024, the state-owned Veikkaus had seen its market share fall to roughly 61% as offshore sites captured Finnish players' attention. In response, Finland is enacting a major regulatory overhaul: the government has approved a shift to a multi-license system starting in 2026, ending the monopoly era. Under the new framework, foreign and private operators can apply for Finnish licenses by 2026, with full operations expected by 2027. This reform is paired with stringent requirements – licensed casinos must use approved software, implement daily loss limits, and adhere to strict responsible gambling rules. Notably, Finland's regulators are also tackling marketing and bonus offers to keep play fair and transparent. Welcome bonuses for new players will be banned and any promotions to existing customers must be moderate and clearly explained, so as not to encourage reckless spending. In short, Finland's model combines easy user onboarding, rigorous KYC, transparent bonus policies, and a strong regulatory backbone – all contributing to high consumer confidence in the system. It's also telling that Finnish players rely on independent resources to navigate the casino market. For example, casino comparison platforms like Kasinoranking – which lists the best online casinos – have become popular for helping Finns find reputable sites (with many Finnish-friendly sites operating under Malta or upcoming Finnish licenses). Such platforms serve as an extra layer of trust, guiding users toward casinos known for fair play, fast payouts, and compliance with regulations. Lessons for Africa from Finland's Experience Africa's online gambling stakeholders can draw several insights from Finland's journey to a safe, thriving iGaming environment. Key lessons include: Streamlined User Experience: Simplifying registration and payments can attract more players to legal platforms. Africa's booming mobile money ecosystem could be leveraged to enable 'Pay N Play'-style onboarding – for instance, using mobile wallets or bank USSD codes to verify identity and fund accounts instantly, similar to Finland's bank-ID approach. Reducing friction (while still verifying age and identity) makes the legal sites more appealing than unregulated alternatives. Strong but Smart Regulation: Implementing clear licensing regimes and enforcement in African markets will boost consumer trust. Finland's shift from a monopoly to a licensed multi-operator model shows that opening the market under strict oversight can both protect players and generate revenue. African regulators could license reputable operators (including international ones) under local rules, ensuring they meet standards for fairness, security, and responsible gaming. This helps channel players towards safe, taxed, and monitored platforms, rather than offshore or black-market sites. KYC and Player Protection: Finland demonstrates that fast KYC can go hand-in-hand with safety. African operators and regulators should invest in modern eKYC systems – potentially tapping into national ID databases or telecom data – to verify players quickly and keep out underage or problem gamblers. Additionally, mandated tools like deposit limits, reality checks, and self-exclusion options can be required, mirroring Finland's emphasis on preventing gambling harm. By proactively promoting responsible gambling, the industry can sustain long-term growth and avoid backlash. Transparent Bonuses and Marketing: Hidden wagering requirements or misleading offers erode player confidence. Adopting clear, transparent bonus policies similar to Finland's (which even outlaws large welcome bonuses) could differentiate legal African sites from shady competitors. When players know that promotions are fair and terms are upfront, they are more likely to stick with licensed casinos. Likewise, marketing should be tempered with protective measures – e.g. no targeting minors or problem gamblers – to maintain a positive public image of the industry. Building Consumer Trust: Perhaps the overarching lesson is that trust is the currency of online gambling. Finland's ecosystem benefits from high trust – fostered by visible regulation, dependable payment methods, and community knowledge of which sites are reputable. African markets can cultivate a similar trust by endorsing independent audits and reviews. Encouraging local comparison portals or watchdog groups to highlight the region's best and safest online casinos (much like Finnish players consult platforms such as Kasinoranking for guidance) can empower users to make informed choices. When players feel confident that their money and data are safe – that winnings will be paid and games aren't rigged – they engage more freely, driving the industry's growth. Conclusion: A New Era for Africa's Online Casinos Africa's online casino industry is poised on the brink of significant expansion. The combination of a large youthful population, rapid digitalization, and passion for gaming suggests that the continent could be one of the next global iGaming powerhouses. If African countries can adapt and adopt the best practices from pioneers like Finland – balancing innovation with regulation – the rewards are substantial. We may see local operators offering frictionless 'play now, verify instantly' experiences, governments rolling out licenses that legitimize the sector, and consumers enjoying entertainment with full confidence in its safety and fairness. In the coming years, Africa's iGaming space can evolve from a nascent opportunity into a mature, well-regulated marketplace that rivals more established markets. By learning from Finland's example and tailoring those lessons to regional realities, Africa has the chance to unlock the best of both worlds: a booming online casino sector that is both profitable and principled, delivering fun and fortune in a responsibly managed arena. The cards are on the table – and Africa's digital gambling future looks undeniably bright.
