Comoros, an archipelago located in the Indian Ocean, is making strides in the world of digital payments, as mobile money and other modern payment solutions become more prevalent. With traditional banking infrastructure limited in the country, new payment methods are playing a crucial role in increasing financial inclusion and enabling businesses to expand their reach.
Banking in Comoros: A Snapshot
With limited banking infrastructure, over 70% of Comoros’ population remains unbanked. In a country where cash transactions and informal financial practices are still prevalent, mobile money has emerged as a key player in transforming the payments landscape. By 2021, over 60% of Comoros residents had access to mobile phones, and many are increasingly using their devices for financial transactions.
Services like MobiCash and D7 are leading the charge, allowing users to send money, pay bills, and conduct other transactions without needing a traditional bank account. These services are helping bridge the gap for people who previously lacked access to formal financial institutions.
The Rise of Neobanks and Digital Payment Solutions
As mobile penetration increases, neobanks and digital payment platforms are beginning to shape the financial landscape in Comoros. Although the market is still in its early stages, international neobanks like Revolut and Chime are starting to explore opportunities in smaller African nations, including Comoros. These digital banks offer a full range of services, including savings accounts, money transfers, and access to loans, all through a smartphone application.
The growth of digital payment solutions has made it easier for people in Comoros to access goods and services, especially in urban centres like Moroni, the capital. This shift towards cashless payments is expected to accelerate over the next few years, as more businesses and consumers adopt these convenient methods.
Mobile Money and the Path to Financial Inclusion
Mobile money services are already proving successful in the Comoros. Platforms like MobiCash are offering services tailored to the needs of local users, enabling individuals to make payments, transfer funds, and save money more easily. The ability to transfer funds across the islands with a few taps on a smartphone is opening up new opportunities for trade and business.
Looking ahead, as mobile data becomes more affordable and smartphone access spreads to remote areas, these payment methods will likely grow. The introduction of blockchain and decentralised financial solutions could also provide further opportunities for Comoros to leapfrog traditional banking barriers.