Burundi, like many other African countries, is witnessing a transformation in the way people handle their money. Although the country remains primarily cash-based, digital and mobile payment solutions are gaining traction. The emergence of new payment methods, such as mobile wallets and fintech innovations, is providing a way for Burundians to enjoy increased financial inclusion, improved access to services, and enhanced convenience in their day-to-day transactions.
The State of Banking in Burundi
Burundi’s banking sector remains relatively underdeveloped, with only around 5% of the population having access to formal financial services. The majority of the population relies on cash transactions, making it difficult for many to save, invest, or make payments easily. However, mobile money is changing this landscape. Services like Mobile Money Burundi and Airtel Money are helping to bridge the gap, offering people a way to send, receive, and store money digitally.
Mobile payment services have gained popularity due to their simplicity and ease of use, especially in rural areas where access to banks is limited. The volume of mobile money transactions in Burundi increased by 30% in 2020, demonstrating the rising acceptance of these digital payment methods.
The Role of Neobanks and Fintech Solutions
Burundi’s fintech industry is still emerging, but it is rapidly growing. Neobanks, digital banking platforms that offer fully online financial services, are expected to play a significant role in the country’s financial future. These platforms do not rely on physical branches, which makes them an ideal solution in a country with limited banking infrastructure.
In addition to mobile money providers, fintech companies are now beginning to make inroads into Burundi’s financial landscape. Companies such as Tigo Cash and M-Pesa are enhancing financial inclusion through easy-to-access, low-cost platforms, particularly for those in the rural areas. By 2023, it is expected that more Burundians will use mobile payments and neobanks as the infrastructure for such services improves.
Digital Payments and Financial Inclusion in Burundi
With the majority of Burundians lacking access to formal banking services, mobile and digital payment platforms are playing a crucial role in promoting financial inclusion. In particular, mobile wallets and digital payments provide more affordable and convenient alternatives for people to send money, pay for goods, and even save.
The future of payments in Burundi lies in expanding the reach of mobile payment services and increasing awareness of neobank platforms. As more people become aware of these alternatives, the country will likely see a boost in financial literacy and economic participation.