Mobile money adoption has skyrocketed in West Africa, fundamentally changing how commerce is conducted. In this industry analysis, we look at the trends driving this growth and what it means for online merchants.
The Shift from Cash
Just a decade ago, "Cash on Delivery" was the dominant payment method for e-commerce in Nigeria and Ghana. Today, that narrative has flipped. Trust in digital wallets like OPay, PalmPay, and MTN MoMo has surged.
Key Statistics
- Ghana: Over 80% of the adult population has a mobile money account.
- Senegal: Wave has disrupted the market with near-zero fees, capturing 50% market share in under two years.
- Nigeria: Agency banking and transfer-based payments have overtaken card payments for local transactions.
The Role of Telcos vs. Fintechs
In Ghana and Kenya, Telcos (MTN, Safaricom) lead the charge. In Nigeria, bank-led fintechs and standalone apps (Moniepoint, OPay) are the primary drivers. Understanding these nuances is critical for any business looking to expand into the region.
Lumen Pay's Strategy
We have built direct integrations with these local wallets, bypassing traditional card rails. This ensures higher success rates and lower fees for our merchants. If you are selling in West Africa, offering Mobile Money is no longer optional—it is a necessity.