New Payment Methods in Burkina Faso: Digital Transformation of Financial Services

Burkina Faso, traditionally dependent on cash-based transactions and mobile money, is now seeing a shift towards modern payment solutions that are shaping the financial landscape. With more people gaining access to mobile phones and the internet, new payment methods such as mobile wallets, fintech services, and neobanks are growing rapidly in the country. These developments are improving financial inclusion and providing new avenues for businesses and individuals alike.

The State of Banking in Burkina Faso

Burkina Faso’s banking sector is still in its infancy compared to more developed economies. With a banking penetration rate of only 14%, a large portion of the population remains unbanked or underbanked. However, mobile banking services have made strides in providing financial inclusion. In 2021, mobile money transactions were estimated to total around $1.2 billion, driven by the high percentage of mobile phone users.

Companies such as Orange Money and Moov Money dominate the mobile money landscape in Burkina Faso, providing services ranging from sending remittances to paying for goods and services, particularly in rural areas where banks are less accessible. The ease of access to mobile money is a game-changer in a country where traditional banking infrastructure has been limited.

Neobanks and Digital Payment Solutions

Neobanks and digital payment solutions are beginning to emerge in Burkina Faso, providing services to those previously excluded from the financial system. Neobanks, which offer completely digital banking experiences, have yet to fully establish themselves in the country but are gaining momentum.

For instance, Taptap Send, a fintech company offering low-fee international remittance services, is becoming popular in Burkina Faso. This platform allows Burkinabe to send and receive money from family and friends abroad with lower fees than traditional money transfer services. As the neobank trend continues to grow in Africa, companies offering innovative digital payment solutions are expected to increase access to banking for the unbanked population of Burkina Faso.

Mobile Payments and Financial Inclusion

One of the driving forces behind the adoption of new payment methods is Burkina Faso’s mobile phone penetration, which is estimated at 60%. With a strong mobile infrastructure, digital payments are rapidly gaining ground. Mobile wallets like Moov Money and Orange Money allow for peer-to-peer transactions, bill payments, and online purchases without needing a bank account.

The digitalisation of payments is opening up economic opportunities for individuals and businesses alike. Small traders, farmers, and entrepreneurs in Burkina Faso can now accept payments via mobile money, streamlining commerce and improving access to a broader customer base.

The Future of Payments in Burkina Faso

As more Burkinabe embrace digital payment methods, the country is likely to see further innovation in the financial sector. With fintech platforms becoming more sophisticated, the future of payments in Burkina Faso looks bright, as digital and mobile-first solutions enable financial inclusion on a larger scale.