Onafriq was built to connect mobile wallets across Africa, and now its customers in the Democratic Republic of Congo (DRC) will also be able to link to Visa’s card network.
The two firms are launching Visa Pay, a cloud-based payments-as-a-service platform that will allow consumers to fund digital wallets via mobile money channels. Powered by Onafriq’s APIs, the platform will effectively connect Visa’s card network to the leading wallets in the DRC, such as M-Pesa, Airtel Money, and Orange Money.
The solution meets strong demand: there are 120 million Visa transactions in the DRC each year. Meanwhile, GSMA Africa projects that the DRC’s mobile payments industry will process $3.85 billion in transaction value this year.
Reach Plus Presence
In a prepared statement, Sophie Kafuti, General Manager of Visa DRC, noted that the partnership “represents our ambition to accelerate financial inclusion in the DRC.”
Financial inclusion has been one of the most powerful benefits of digital and mobile wallets, and a key factor driving their widespread adoption across many regions of the world. In numerous unbanked and underbanked areas, mobile money services often provide the only means for citizens to participate in the increasingly digital economy.
Just the Beginning
In addition to increasing financial inclusion, expansion into Africa aligns with Visa’s global strategy. After the U.S. lagged in passing open banking regulations, Visa shuttered its open banking service in the country.
The open banking model relies on partnerships between lenders and fintechs. Beyond the lack of regulation in the U.S., there has even been talk that some traditional financial institutions could charge fintechs fees for access to customer data. In response, Visa said it would focus its open banking efforts elsewhere, such as in Europe and Latin America.
Africa could also be a prime market for Visa, and the Onafriq partnership could serve as a blueprint for further Visa Pay expansion. Onafriq connects to roughly one billion wallets across 43 nations in Africa, suggesting that the DRC launch could be just the beginning.
