Visa Navigates West African Payment Sovereignty and Interoperability Mandates
Visa’s strategy in West and Central Africa is undergoing a significant recalibration, driven by evolving regulatory landscapes and the rapid expansion of mobile money. Aminata Kane, head of Visa’s West and Central Africa region, outlined the company’s approach to navigating critical mandates such as payment sovereignty and interoperability, while capitalising on the continent’s burgeoning digital economy.
Speaking on the sidelines of the Visa Payments Forum in Paris, Kane addressed the pivotal moment for the region’s payments industry. The Central Bank of West African States (BCEAO) has again postponed the deadline for connecting to its PI-SPI instant payment interoperability platform. Concurrently, GIM-UEMOA’s Decision 31 mandates domestic routing and clearing of card transactions, compelling global players like Visa and Mastercard to adapt their systems. Visa has requested additional time to comply with these directives, with Kane confirming recent meetings with BCEAO officials to present the company’s implementation progress.
Visa’s priorities for West and Central Africa over the next 18 months centre on three key pillars: expanding payment acceptance, enhancing interoperability, and building trust. The company aims to facilitate global purchasing for African consumers through virtual cards linked to mobile money accounts, enabling transactions on international platforms. Crucially, Visa is investing in its cybersecurity and resilience capabilities, making these services available to the broader payments ecosystem, including fintechs, banks, and payment processors, to ensure secure transactions.
Mobile money, a cornerstone of Africa’s payment innovation, is viewed by Visa not as a competitor but as a vital partner. Kane, drawing on a decade of experience with Orange Money, highlighted that mobile wallets often serve as the first financial account for many Africans, bypassing traditional banking infrastructure. With nearly one-third of global mobile money accounts located in Africa, collaboration with mobile money operators is indispensable. Visa’s strategy involves strengthening their infrastructure and connecting them to the global payments ecosystem, rather than competing directly. Recent partnerships include those with Huawei, Orange Money, and Djamo, alongside collaborations with fintechs like ExpressPay in Ghana, focusing on payment acceptance solutions.
Addressing the persistent challenge of limited access to payment terminals and the dominance of cash in some areas, Visa is actively investing in low-cost payment terminals and exploring innovative solutions. The company is evaluating affordable terminals, including models from India and Pakistan, that support QR code and contactless payments, offer extended battery life, and cost under $20. Furthermore, Visa’s Tap to Phone and Visa Accept solutions enable smartphones to function as payment terminals. While NFC chip penetration is growing, QR codes remain a widely accessible payment method, necessitating terminals that support both.
The BCEAO’s extensions for PI-SPI connectivity underscore regional efforts to bolster payment sovereignty. Visa views these local initiatives as opportunities rather than threats, emphasising the collective goal of reducing cash usage and enhancing payment system interoperability. The company’s focus remains on ensuring the security of these transactions and rails, leveraging its extensive experience to connect these nascent payment systems to the global financial network. Visa engages both directly with fintechs and payment switch operators, providing cybersecurity and digital acceptance services, and indirectly through regulated partners like banks and fintechs facilitating cross-border payments.
Regarding GIM-UEMOA’s Decision 31, Visa acknowledges the importance of initiatives aimed at strengthening payment sovereignty. The company has been actively engaged in the implementation process, completing initial technical milestones and remaining in close contact with GIM-UEMOA and BCEAO officials. Kane indicated that full compliance with the directive is anticipated within the next few months.
Visa’s investment commitments across Africa, particularly within the CFA franc zone, are substantial and extend through 2027. These investments span technical infrastructure, including a data centre in South Africa and expanded capabilities in Nigeria, as well as human capital development through the establishment of the West and Central Africa region hub in Abidjan. Furthermore, Visa is forging multi-year growth partnerships, investing alongside clients to provide marketing expertise, technical support, and cybersecurity solutions. The ultimate measure of success, according to Kane, will be the tangible impact of these investments, evidenced by new payment acceptance points, the growth of fintechs, and the volume of interoperable cross-border transactions facilitated.
