IN a significant stride toward expanding financial access across West Africa, about 90 banks and financial institutions have adopted a groundbreaking Instant Payment System (IPS) within the West African Economic and Monetary Union (WAEMU). Launched in August 2024, the IPS allows seamless, round-the-clock financial transactions between member countries, including Burkina Faso, Benin, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.
This new system is poised to significantly improve financial inclusion, especially in underserved areas, by providing easier access to payments and banking services. The IPS enables payments via interoperable QR codes and facilitates standard financial services for businesses across the region.
Currently, only 24.3 percent of adults in the WAEMU region hold bank accounts, but with the introduction of IPS, this number is expected to rise as more people gain access to instant, cross-border payments. With a population of 142 million, the region’s existing 21 million bank accounts represent a clear opportunity for growth.
Key features of the IPS
- Interoperability: The system connects traditional banks, electronic money institutions (EMIs), and fintech companies, allowing seamless transactions across different types of financial entities.
- Cross-border transactions: IPS enables efficient and secure transactions across the eight WAEMU countries, enhancing cross-border trade and financial cooperation.
- Wide participation: Major financial players, including Ecobank, MTN, and United Bank for Africa, have joined the system, with a second cohort of 65 institutions recently integrating into the platform.
According to Modou Sall, a fintech consultant, ‘Interoperability is at the heart of the IPS, enabling fluid transactions between customers of different institutions—whether from banks, EMEs, or fintechs. This openness allows broad participation and strengthens financial inclusion.’
The Central Bank of West African States (BCEAO), which is piloting the system, aims to close the financial inclusion gap by providing faster, more efficient services that benefit both businesses and individuals.
As more financial institutions join the initiative, WAEMU’s IPS is set to play a transformative role in West Africa’s economic landscape, fostering greater regional cooperation and financial inclusion.
