Cameroon: mobile money market faces Wave shock

With over 12 million active wallets, mobile money has become a pillar of the digital economy in Cameroon. Until now, the sector has been dominated by two giants: MTN Mobile Money and Orange Money: MTN Mobile Money and Orange Money, the sector accounts for 71% of transactions in the CEMAC zone, according to the BEAC, and contributes 5-8% of national GDP, according to the GSMA.

Industry pioneer Orange relies on extensive coverage and extended banking services, while MTN relies on a dense agent network and extensive integration of its services into everyday life (bill payment, transfers, retail). Together, they share a near-duopoly, with fees sometimes considered high by users.

But the arrival of Wave, via a partnership with the Commercial Bank Cameroun (CBC), could reshuffle the deck. Building on its success in West Africa, the fintech offers aggressive pricing: free deposits and withdrawals, transfers at 1%. This approach has turned the markets of Senegal and ivory coast upside down, forcing incumbent operators to lower their prices.

This model could stimulate competition, **foster financial inclusion, particularly in rural areas, and **attract new users previously excluded from the system. But Wave will have to face several challenges: building a reliable network of agents, gaining the trust of merchants, and complying with strict rules imposed by Cobac, such as the ban on directly issuing electronic money.

The market could also see the emergence of Camtel, the public operator, which is planning its own mobile money solution in 2025. In this context, Wave’s entry marks the start of a new era of competition, likely to lower prices, improve services and expand access to financial services for millions of Cameroonians.

source: EcoMatin