Latest news with #mobilemoney
Russia Today
2 days ago
- Business
- Russia Today
Forget Wall Street. Bitcoin's real test is happening here
Kenya is touted as Africa's hub for technology and innovation. Across the East African nation, mobile money has become the most common and widely used form of payment and banking, both in the formal and informal sectors of the economy. But even as mobile money dominates Kenya's economy, a new wave of cryptocurrency payment is taking root in urban areas across the country. A 2022 UN report listed Kenya as the largest market of crypto users in Africa, with four million crypto owners. Kenya's crypto sector is estimated to register 4% growth by the end of 2025. Since 2022, Brian Omondi has operated an electronics and gaming shop in Kibera, Kenya's largest urban slum, 10km south of the Capital, Nairobi. The 26-year-old business management graduate has embraced Bitcoin as a form of payment, which he says is 'more effective.' 'I have clients from across the country, and online marketing is central to my business. Bitcoin payments are fast and secure because once the funds are in my wallet, they can't be reversed, unlike mobile money,' Omondi told RT. He says most of his customers are tech-savvy young Kenyans and college students who are increasingly turning to cryptocurrency. 'With Bitcoin, there's no need to visit an agent to deposit or withdraw money. All I need is a smartphone and internet access. There is no bureaucracy, no transaction charges,' he said. Omondi, who gets his electronics supplies from China, says using Bitcoin has also made it easier to restock his shop by transacting directly with suppliers who accept cryptocurrency. 'With Bitcoin, I can place orders and make payments instantly, bypassing currency conversions or international banking procedures,' he explains. 'It saves me time and money, and my goods arrive faster.' Young Kenyans in urban centers are rapidly embracing Bitcoin as a form of payment, with many turning to the cryptocurrency as a flexible, borderless alternative amid limited access to traditional banking due to a lack of formal employment. Increased Bitcoin usage is also driven by the digital lifestyles of Kenyan youth, widespread smartphone usage, and enhanced internet connectivity. In 2022, AfriBit Africa, a Kenyan fintech company, introduced the use of Bitcoin in Kibera. Ronnie Mdawida, AfriBit Africa co-founder, told RT that 'Bitcoin guarantees financial freedom to users since it does not require the same documentation as traditional banking.' Small-scale traders and motorcycle taxi riders are among those accepting bitcoin payments in Kenyan towns. AfriBit Africa claims to have invested approximately $10,000 worth of bitcoin in Kibera since 2022. Mohammed Rajab, a taxi operator in the tourist city of Mombasa, says he began accepting Bitcoin in 2023 because many of his foreign clients prefer to pay using cryptocurrency. 'Bitcoin is safe because I own and control my funds without relying on a third party,' Rajab told RT. Rajab says most of his foreign clients find it easier to pay in crypto rather than converting currency or using cards. 'Bitcoin comes with the flexibility of saving and converting when rates are favorable,' he said. With the rise of remote freelance work, Bitcoin and other cryptocurrencies have become essential for many young Kenyans earning a living through digital platforms. Sarah Thuo, based in Kisumu City, Western Kenya, has been a content writer for the past six years and has been accustomed to crypto payments. 'All my clients are from the international market, and having a Bitcoin wallet enables faster payments, unlike bank transfers, which are prone to delays and restrictions,' she told RT. For Sarah, Bitcoin also shields her earnings from currency fluctuations and high bank transfer fees. In 2024, the Kenya Revenue Authority (KRA) collected approximately $77.3 million (Ksh 10 billion) from virtual asset service providers (VASPs). In 2023, under the Finance Act 2023, the Kenyan government introduced the Digital Assets Tax (DAT). Under the provision, crypto incomes are taxed. The law introduced a 3% tax on the transfer or exchange of digital assets. But experts warn that even as Bitcoin use gains momentum across Kenya, legal loopholes could expose many to the risk of fraud. Ali Hussein Kassim, chair of the FinTech Alliance in Kenya, told RT that many Kenyans are oblivious of the risks associated with bitcoin. 'The investors are more interested in making profits and do not educate the users about the potential risks of bitcoin; no one takes to evaluate the risks involved,' Kassim warns. Kassim notes that the population being exposed to cryptocurrency is vulnerable. According to him, Bitcoin lacks the same protections as other financial services due to a lack of strong regulations. However, Mdawida told RT that, to cushion Kenyans against crypto risks, they have invested in financial literacy training and crypto courses for those using Bitcoin. Cases of cryptocurrency-related fraud have previously been reported in Kenya. In February 2025, two Kenyans were arrested for defrauding a Chinese national in a crypto scam. In January 2025, the IMF, in a Technical Assistance Report for Kenya has called for the enhancement of the country's safety and regulation of the crypto sector. According to the IMF report, Kenya currently lacks a clear regulatory framework to oversee crypto-related activities. This loophole, the IMF said, has exposed cryptocurrencies to unlawful purposes. To address the challenges and guard cryptocurrencies against misuse, the IMF advised Kenya to implement robust anti-money laundering laws and counter-terrorism financing measures. In 2022, the Central Bank of Kenya (CBK) explored the possibility of introducing a digital shilling dubbed the Central Bank Digital Currency (CBDC), but the plan was abandoned due to the clear effectiveness of the already existing Kenya's leading mobile money infrastructure, M-Pesa. Cryptocurrencies like Bitcoin are not illegal in Kenya, and the law allows owning and trading of crypto. They are, however, not recognized as legal tender, nor accepted for official transactions like paying taxes, bank transactions or paying fees charged for government services. The growing adoption of crypto, especially among the young and tech-savvy population, has prompted the government to draft legislation that aims to regulate digital asset services and related activities. Kenya's Finance Ministry introduced the Virtual Asset Service Providers (VASP) Bill, 2025, which outlines the licensing requirements for crypto service providers. The proposed law, which is currently before parliament, requires virtual asset service providers to register as formal businesses and obtain a government-issued license. The law proposes fines of up to KES 20 million ($150,000) for companies and KES 10 million and/or up to ten years in prison for individuals found in violation of the regulations. To enhance consumer protection and financial integrity, the law proposes fines of up to KES 30 million or imprisonment for up to a decade for offences related to scams, pump-and-dump schemes, or market manipulation. At the same time, the Kenyan government also requires crypto companies to implement strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to enhance accountability and combat financial crime. And just like banks and traditional financial institutions, crypto companies are required to report any suspicious activities to the Financial Reporting Centre (FRC). Kassim argues, however, that the global nature of cryptocurrency makes it difficult for Kenya to regulate users who access international platforms outside its jurisdiction. 'Most cases of the fraud being reported have a foreign link, and many of those defrauded never recover their money,' he told RT. Just as with the AI, Kenya cannot run away from the cryptocurrency reality and all it needs are strong and implementable policies that will cushion the public from exploitation. 'The world is headed the cryptocurrency way and Kenya must not be left out. We must however get it right even as we join the bandwagon,' Kassim concluded.
Zawya
3 days ago
- Business
- Zawya
Uganda: MTN to split mobile money from its core business
Shareholders of Ugandan telco MTN have resolved to spin off the company's mobile money and financial services branch, which will run independent of its communications business. It means MTN Mobile Money Uganda Ltd is set for a change to a new brand – MTN New FinCo, if regulators approve the decision. The separation is aimed at giving the fintech arm the autonomy to thrive in a fast-evolving market.'You may ask why split MoMo (MTN Mobile Money) from our core telecom business?' Sylvia Mulinge, the CEO of MTN Uganda, asked.'Because fintech is a different beast. It moves fast. It needs focus, flexibility and freedom to grow. By giving MoMo its structure, we're giving it the space it needs to scale, innovate and lead,' she explained, adding that the move unlocks value for shareholders, sharpens strategic focus and aligns with international best practice.'It's a critical part of our Ambition 2025 to lead digital solutions for Africa's progress,' she said. The adjustment follows a report that indicated MTN Uganda's mobile money unit was a significant growth engine for the firm. The unit closed the year with USh1.63 trillion ($45 million) in assets, outpacing competitor Airtel Uganda's USh1.01 trillion ($28 million). MTN also leads in customer mobile money balances, holding USh1.37 trillion ($38 million), nearly twice its closest competitor. Despite the strong performance, mobile money revenue still lags behind traditional voice services, underscoring the need for renewed strategic focus and investment. MTN plans to position the newly created MTN New FinCo for future equity injections, with a goal of listing the standalone fintech business on the Uganda Securities Exchange in three to five years. Read: MTN Group nets $30 million from sale of 1.5bn shares in Ugandan subsidiaryCharles Mbire, Chairperson of MTN Uganda's Board, hailed the shareholder support: 'We are grateful to our shareholders for their confidence and backing this step. This transaction is designed to unlock value for our shareholders while future-proofing the fintech business.'Ownership of MTN New FinCo will be held 76.015 per cent by MTN Group Fintech Holdings B. V, with the remaining placed in a trust for MTN Uganda shareholders. In the interim, a shareholder trust will be created to manage shares for the more than 20,000 retail investors. Uganda's mobile money market remains highly competitive, driven by mobile wallet penetration and digital adoption. MTN and Airtel continue to expand their reach, including rural rollouts like Airtel's May 2025 expansion of 4G network to Kazo District, aimed at boosting digital inclusion. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Russia Today
3 days ago
- Business
- Russia Today
Crypto rush: Is this African nation headed for boom or bust?
Kenya is touted as Africa's hub for technology and innovation. Across the East African nation, mobile money has become the most common and widely used form of payment and banking, both in the formal and informal sectors of the economy. But even as mobile money dominates Kenya's economy, a new wave of cryptocurrency payment is taking root in urban areas across the country. A 2022 UN report listed Kenya as the largest market of crypto users in Africa, with four million crypto owners. Kenya's crypto sector is estimated to register 4% growth by the end of 2025. Since 2022, Brian Omondi has operated an electronics and gaming shop in Kibera, Kenya's largest urban slum, 10km south of the Capital, Nairobi. The 26-year-old business management graduate has embraced Bitcoin as a form of payment, which he says is 'more effective.' 'I have clients from across the country, and online marketing is central to my business. Bitcoin payments are fast and secure because once the funds are in my wallet, they can't be reversed, unlike mobile money,' Omondi told RT. He says most of his customers are tech-savvy young Kenyans and college students who are increasingly turning to cryptocurrency. 'With Bitcoin, there's no need to visit an agent to deposit or withdraw money. All I need is a smartphone and internet access. There is no bureaucracy, no transaction charges,' he said. Omondi, who gets his electronics supplies from China, says using Bitcoin has also made it easier to restock his shop by transacting directly with suppliers who accept cryptocurrency. 'With Bitcoin, I can place orders and make payments instantly, bypassing currency conversions or international banking procedures,' he explains. 'It saves me time and money, and my goods arrive faster.' Young Kenyans in urban centers are rapidly embracing Bitcoin as a form of payment, with many turning to the cryptocurrency as a flexible, borderless alternative amid limited access to traditional banking due to a lack of formal employment. Increased Bitcoin usage is also driven by the digital lifestyles of Kenyan youth, widespread smartphone usage, and enhanced internet connectivity. In 2022, AfriBit Africa, a Kenyan fintech company, introduced the use of Bitcoin in Kibera. Ronnie Mdawida, AfriBit Africa co-founder, told RT that 'Bitcoin guarantees financial freedom to users since it does not require the same documentation as traditional banking.' Small-scale traders and motorcycle taxi riders are among those accepting bitcoin payments in Kenyan towns. AfriBit Africa claims to have invested approximately $10,000 worth of bitcoin in Kibera since 2022. Mohammed Rajab, a taxi operator in the tourist city of Mombasa, says he began accepting Bitcoin in 2023 because many of his foreign clients prefer to pay using cryptocurrency. 'Bitcoin is safe because I own and control my funds without relying on a third party,' Rajab told RT. Rajab says most of his foreign clients find it easier to pay in crypto rather than converting currency or using cards. 'Bitcoin comes with the flexibility of saving and converting when rates are favorable,' he said. With the rise of remote freelance work, Bitcoin and other cryptocurrencies have become essential for many young Kenyans earning a living through digital platforms. Sarah Thuo, based in Kisumu City, Western Kenya, has been a content writer for the past six years and has been accustomed to crypto payments. 'All my clients are from the international market, and having a Bitcoin wallet enables faster payments, unlike bank transfers, which are prone to delays and restrictions,' she told RT. For Sarah, Bitcoin also shields her earnings from currency fluctuations and high bank transfer fees. In 2024, the Kenya Revenue Authority (KRA) collected approximately $77.3 million (Ksh 10 billion) from virtual asset service providers (VASPs). In 2023, under the Finance Act 2023, the Kenyan government introduced the Digital Assets Tax (DAT). Under the provision, crypto incomes are taxed. The law introduced a 3% tax on the transfer or exchange of digital assets. But experts warn that even as Bitcoin use gains momentum across Kenya, legal loopholes could expose many to the risk of fraud. Ali Hussein Kassim, chair of the FinTech Alliance in Kenya, told RT that many Kenyans are oblivious of the risks associated with bitcoin. 'The investors are more interested in making profits and do not educate the users about the potential risks of bitcoin; no one takes to evaluate the risks involved,' Kassim warns. Kassim notes that the population being exposed to cryptocurrency is vulnerable. According to him, Bitcoin lacks the same protections as other financial services due to a lack of strong regulations. However, Mdawida told RT that, to cushion Kenyans against crypto risks, they have invested in financial literacy training and crypto courses for those using Bitcoin. Cases of cryptocurrency-related fraud have previously been reported in Kenya. In February 2025, two Kenyans were arrested for defrauding a Chinese national in a crypto scam. In January 2025, the IMF, in a Technical Assistance Report for Kenya has called for the enhancement of the country's safety and regulation of the crypto sector. According to the IMF report, Kenya currently lacks a clear regulatory framework to oversee crypto-related activities. This loophole, the IMF said, has exposed cryptocurrencies to unlawful purposes. To address the challenges and guard cryptocurrencies against misuse, the IMF advised Kenya to implement robust anti-money laundering laws and counter-terrorism financing measures. In 2022, the Central Bank of Kenya (CBK) explored the possibility of introducing a digital shilling dubbed the Central Bank Digital Currency (CBDC), but the plan was abandoned due to the clear effectiveness of the already existing Kenya's leading mobile money infrastructure, M-Pesa. Cryptocurrencies like Bitcoin are not illegal in Kenya, and the law allows owning and trading of crypto. They are, however, not recognized as legal tender, nor accepted for official transactions like paying taxes, bank transactions or paying fees charged for government services. The growing adoption of crypto, especially among the young and tech-savvy population, has prompted the government to draft legislation that aims to regulate digital asset services and related activities. Kenya's Finance Ministry introduced the Virtual Asset Service Providers (VASP) Bill, 2025, which outlines the licensing requirements for crypto service providers. The proposed law, which is currently before parliament, requires virtual asset service providers to register as formal businesses and obtain a government-issued license. The law proposes fines of up to KES 20 million ($150,000) for companies and KES 10 million and/or up to ten years in prison for individuals found in violation of the regulations. To enhance consumer protection and financial integrity, the law proposes fines of up to KES 30 million or imprisonment for up to a decade for offences related to scams, pump-and-dump schemes, or market manipulation. At the same time, the Kenyan government also requires crypto companies to implement strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to enhance accountability and combat financial crime. And just like banks and traditional financial institutions, crypto companies are required to report any suspicious activities to the Financial Reporting Centre (FRC). Kassim argues, however, that the global nature of cryptocurrency makes it difficult for Kenya to regulate users who access international platforms outside its jurisdiction. 'Most cases of the fraud being reported have a foreign link, and many of those defrauded never recover their money,' he told RT. Just as with the AI, Kenya cannot run away from the cryptocurrency reality and all it needs are strong and implementable policies that will cushion the public from exploitation. 'The world is headed the cryptocurrency way and Kenya must not be left out. We must however get it right even as we join the bandwagon,' Kassim concluded.
Reuters
7 days ago
- Business
- Reuters
MTN Uganda to spin off fintech unit into separate firm
KAMPALA, July 23 (Reuters) - MTN Uganda ( opens new tab, the East African country's largest telecom firm, plans to split off its fintech unit into a separate entity and aims to list it on the local bourse in three to five years, the company said late on Tuesday. The company, which has a mobile subscriber base of about 21 million, is a unit of South Africa's MTN Group (MTNJ.J), opens new tab and competes mainly with the local unit of India's Bharti Airtel ( opens new tab. MTN Uganda received shareholder nod at an extra-ordinary general meeting held on Tuesday for the proposed separation of its mobile money and fintech business, the company said in a statement. Mobile money is a cell phone-enabled service that allows subscribers to transfer money and make payments for products and services like utility bills, energy purchases, food orders and ride hails. The platform has grown rapidly in Africa, where it is now widely used. Under the reorganisation, MTN Uganda's mobile money fintech business will be transformed into a separate entity majority owned by MTN Group Fintech Holdings B.V, the fintech arm of MTN Group. The goal is to "ultimately see the independent fintech business list separately on the Uganda Securities Exchange (USE), alongside MTN Uganda, within a three- to five-year period," MTN Uganda Chief Executive Sylvia Mulinge said in the statement.
News24
21-07-2025
- Business
- News24
Digital payments are booming and regulation is struggling to keep up
As the adoption of digital payments grows, the need for regulatory frameworks that promote innovation, protect consumers, and enhance integrity and security of the financial system has become increasingly critical, says the FSCA's Keith Sabilika. Africa's financial landscape is experiencing significant transformation, as digital payments increasingly displace cash, and emerging crypto assets challenge traditional notions of money. Previously constrained by low banking penetration, the continent is now redefining financial inclusion, through the growth of mobile money and fintech innovation. This shift is further propelled by the increased internet and mobile phone penetration, the rise of e-commerce platforms and youthful tech-savvy population. However, as the adoption of digital payments grows, the need for regulatory frameworks that promote innovation, protect consumers, and enhance integrity and security of the financial system has become increasingly critical. The digital payments revolution Mobile money has changed the way people handle payments in Africa, with more than 1.1 billion registered mobile money accounts in 2024, reflecting a 19 percent increase from the previous year. Active accounts in 2024 rose by 13 percent to 286 million, demonstrating both broad adoption and growing usage. Transaction value climbed 12 percent to USD 1.1 trillion, while the number of transactions jumped 28 percent to 81 billion, indicating that users are making more, smaller payments, even as larger transfers persist. This shift reflects deeper financial engagement enabled by expanding smartphone and internet access, as well as innovative mobile money services. Africa has also emerged as one of the fastest-growing regions for crypto assets adoption, recording over $125 billion in on-chain crypto transactions in recent years, a trend that underscores the continent's shift toward cheaper, faster, and more accessible remittance alternatives. Crypto-based remittances, including those facilitated via stablecoins and blockchain networks, are being explored to bypass the high costs and delays associated with traditional banking infrastructure. Simultaneously, fintech APIs are revolutionising cross border transactions by enabling direct wallet-to-wallet interoperability across mobile money platforms, banks, and digital wallets. This significantly reduces friction and cost by eliminating the need for multiple intermediaries, particularly correspondent banks. The regulatory landscape Regulators in Africa are taking actions aimed at levelling the playing field and creating an enabling environment. For instance, the South African Reserve Bank's National Systems Payments Department (NPSD) is spearheading reforms aimed at broadening fintechs and non-bank participation in the national payment system (NPS). Meanwhile, South Africa's Financial Sector Conduct Authority (FSCA) has also emerged as a proactive regulatory force, prioritising consumer, and market development over bureaucratic compliance. A key regulatory milestone in this regard is the anticipated Conduct of Financial Institutions (COFI) Bill, which is expected to be tabled in parliament this year. This legislation is designed to level the playing field across financial institutions and fintech providers through a more adaptable, activity-based regulatory framework. These efforts reflect a shift toward a dynamic regulatory ecosystem, better suited to Africa's fast-moving digital payments sector. Recently in a landmark development, Ghana and Rwanda introduced a licensing passport system, allowing fintech's licensed in one country to expand into the other with minimal regulatory hurdles. By integrating this passport with the Pan-African Payment and Settlement System (PAPSS) and leveraging support from global partners such as the Monetary Authority of Singapore, the initiative is set to streamline cross border payments, lower transaction costs and processing times, and unlock new opportunities for intra-African trade and financial inclusion. Cross border collaboration is critical to overcome to address the enduring challenges involved in intra-Africa payments. In this regard, regional payment systems such as the Pan-African Payment and Settlement System (PAPSS) are addressing the high cost of cross border payments and promoting intra-Africa trade. Challenges and possible solutions The digital payment transition in Africa has made significant progress but faces challenges. While the regulatory landscape for digital payments is evolving, in line with the continent's rapidly expanding fintech sector and increasing focus on financial inclusion, regulatory fragmentation remains a major barrier to seamless cross border fintech innovation. With 54 countries each operating their own licensing requirements, prudential rules and compliance frameworks, fintechs face a patchwork of jurisdictional hurdles whenever they expand regionally. This lack of harmonisation drives up legal and operational costs, prolongs time-to-market and undermines economies of scale forcing many startups to limit their services to domestic markets. Addressing this challenge will require coordinated efforts to align licensing requirements, adopt common data-privacy and anti-money-laundering standards, and build interoperable platforms that enable fintechs to onboard customers, clear transactions and report to regulators under a unified set of rules. Cyber fraud and data breaches are escalating across Africa's digital payments landscape, highlighting the urgent need for comprehensive consumer protection and cybersecurity regimes. In South Africa alone, incidents of digital-banking fraud rose by 45 percent year-on-year, with related financial losses up 47 percent, according to South Africa Banking Risk Information Centre's (SABRIC) Annual Crime Statistics 2023. At the regional level, adopting Pan-African cybersecurity guidelines can ensure consistent incident-reporting, threat-sharing and resilience testing across borders. Trust, access, financial and digital literacy even though they are on the rise, remain uneven and insufficient. These factors act as significant barriers to the adoption of digital payments, especially in underserved and rural communities where low financial literacy and digital unfamiliarity persist. For instance, approximately 400 million in sub-Saharan Africa remain outside the formal financial system. In these areas, several users continue to rely on informal payment methods due to distrust of digital platforms, fear of fraud, and limited understanding of how digital financial services work. Building trust, therefore, requires more than just deploying secure platforms, it necessitates targeted consumer education initiatives that equip users with the knowledge and confidence to engage safely in digital transactions. These programmes should emphasise basic digital financial skills, data protection awareness, and fraud prevention strategies. Looking ahead Africa's digital payments revolution represents one of the most transformative developments in the continent's economic history, a narrative driven by mobile money, fintech innovation, and growing demand for low-cost, real-time financial services. With over 1 billion mobile money accounts and an expanding array of digital wallets, crypto-enabled remittance platforms, and API-powered fintech infrastructure, Africa is redefining how value moves across borders and communities.
