New Payment Methods in Mauritania: Transforming Financial Services and E-Commerce

Mauritania, a country in the Maghreb region of Africa, has traditionally relied on cash for most transactions. However, the rise of mobile money and digital payment systems is changing the way Mauritanians handle their finances, paving the way for greater financial inclusion and increased participation in the digital economy. In this post, we’ll examine the emergence of new payment methods in Mauritania, the state of the banking industry, and how these trends are shaping the country’s future.

The Banking Landscape in Mauritania

Despite the increasing digitalisation of financial services in Africa, Mauritania’s banking sector is relatively small. Around 15% of the population has access to formal banking services, meaning that a large portion of the population is either unbanked or reliant on informal financial systems. However, mobile money services have rapidly gained popularity in the country, providing millions of Mauritanians with access to basic financial services such as sending money, paying bills, and saving money.

Currently, mobile money services like Mauritel Money and Chinguitty are the most widely used payment methods in the country. These services are helping to bridge the gap for the unbanked population, and they continue to grow as mobile phone penetration in Mauritania rises, now estimated at around 60%.

The Rise of Neobanks in Mauritania

While traditional banks remain the backbone of the financial sector, neobanks and digital-only financial platforms are starting to make an impact. Neobanks offer a range of financial services through mobile applications, such as low-fee transactions, savings accounts, and loan facilities, without the need for a physical branch.

Neobanks are gaining popularity due to their lower costs and increased accessibility, particularly for Mauritanians who live in rural or underserved areas. These digital-first financial institutions are making it possible for more people to access banking services, which were once out of reach.

Digital Wallets and E-Commerce Growth

The adoption of digital wallets and alternative payment methods is also on the rise in Mauritania, helping facilitate online transactions. Services such as VoguePay and PayPal are slowly being integrated into the local e-commerce market, enabling consumers to purchase goods and services from international websites.

While e-commerce is still relatively small in Mauritania, the growing adoption of mobile payments is expected to boost this sector. With more Mauritanians gaining access to the internet, there is immense potential for online shopping and digital transactions to become a major driver of economic activity in the future.

Future Prospects for Payment Systems in Mauritania

Looking ahead, the future of payment methods in Mauritania appears promising. As mobile and internet infrastructure improves, the country is likely to see rapid growth in both mobile money services and neobanks. This shift will contribute to greater financial inclusion, allowing more Mauritanians to access a wider range of financial products and services that were previously unavailable to them.