Eswatini’s financial system is undergoing significant changes as new payment methods emerge, offering more accessible financial services for the population. With mobile money and digital payment solutions on the rise, Eswatini is poised for a transformation that could bring banking to more people than ever before.
The State of the Banking Industry in Eswatini
Eswatini’s banking sector has traditionally been dominated by a few key players, with the unbanked population reaching approximately 60% according to recent estimates. Limited access to formal banking services, especially in rural areas, has made it difficult for many citizens to manage their finances. However, mobile money solutions like MTN Eswatini’s MoMo are quickly changing this dynamic.
MoMo, launched in 2011, allows users to deposit, transfer, and withdraw funds using their mobile phones, without the need for a traditional bank account. As of 2021, it had over 1 million registered users, a testament to its success in reaching the unbanked population. Other players like Eswatini Mobile have also introduced similar services, making mobile payments more widespread.
The Rise of New Payment Methods
In addition to mobile money, digital payment platforms are gaining traction in Eswatini. Mobile apps and online banking services are becoming more common as internet connectivity improves. According to the World Bank, around 30% of Emaswati now use digital financial services, up from just 10% five years ago.
While cash is still king in Eswatini, especially in rural areas, these new payment methods are slowly changing the financial landscape. Mobile and digital payments offer a faster, more convenient way to transfer money, pay bills, and purchase goods, making it easier for people to manage their finances.
The Role of Neobanks in Eswatini
Neobanks, or digital-only banks, have yet to make a significant impact in Eswatini, but the potential is there. With the rise of fintech and increasing mobile penetration, digital banks could soon become a key player in the country’s financial ecosystem. These banks, which operate without physical branches, could provide a more efficient way to offer banking services to Eswatini’s underserved population.
In neighbouring countries like South Africa, neobanks such as TymeBank have already disrupted the traditional banking model. While Eswatini’s smaller market may be slower to adopt these innovations, the growing demand for digital services suggests that neobanks could be a solution to the country’s financial inclusion problem in the near future.
Payment Innovations Driving Financial Inclusion
New payment methods are critical for driving financial inclusion in Eswatini. By offering accessible, affordable alternatives to traditional banking, mobile money and digital platforms are helping to bridge the gap for those without access to formal financial services. In 2020, over 50% of mobile phone users in Eswatini were using mobile payment services, and this number is expected to grow as digital infrastructure improves.