MTN Veteran Executive Takes Charge of Cameroon Expansion for Wave
Wave's Entry into Cameroon's Mobile Money Market Shakes Up Competition
Fintech unicorn Wave has made a significant entrance into Cameroon's mobile money market, setting the stage for a fierce battle in one of Central Africa's most dynamic markets. Wave's strategy, backed by a partnership with Commercial Bank Cameroun (CBC), includes free cash withdrawals and a flat 1% transfer fee, challenging the status quo and incumbents like Orange and MTN.
The appointment of Joël Bertrand Ndjodo, a veteran with 11 years at MTN Cameroon and two decades in digital financial services, as Wave’s country manager, suggests Wave’s intent to leverage deep local market knowledge to gain a foothold and compete effectively with established operators.
Wave operates through CBC’s e-money license authorized by COBAC, enabling it to offer a full range of mobile money services like deposits, withdrawals, transfers, and bill payments. This regulatory collaboration is key, since e-money issuance is highly regulated in the CEMAC region.
Orange, the market leader, has proactively cut withdrawal fees, signaling that Wave’s entry is impacting pricing and potentially customer acquisition strategies. Wave’s prior success in markets such as Senegal and Côte d'Ivoire, where similar pricing strategies forced rivals to cut costs, suggests it could replicate this impact in Cameroon.
The entry of Wave into Cameroon's mobile money market has resulted in a disruptive pricing model. Existing providers are being forced to reduce their fees to remain competitive, indicating a prospective pricing war in Cameroon’s mobile money sector.
Wave's expansion is supported by a €117m debt facility, indicating strong financial backing to scale operations aggressively across African markets, including Cameroon.
While Orange maintains brand dominance and a vast user base, Wave’s low-cost model and tailored local management pose a significant competitive threat, challenging Orange to innovate and reduce prices further. The market in Cameroon is tough, with a 0.2% tax on all mobile money transactions eating into margins and brand loyalty heavily favoring incumbents.
Despite strong backing, Société Générale's YUP service shut down in 2022 after failing to gain traction in Cameroon's mobile money market. The number of active mobile money accounts in Cameroon increased 144% from 2019 to 2022, reaching 24 million. Mobile money transaction value in Cameroon surged 162% from 2019 to 2023, reaching €37bn.
In summary, Wave’s entry into Cameroon is reshaping the mobile money landscape by driving down costs, intensifying competition, and potentially expanding financial inclusion through more accessible digital payment solutions. The response from Orange so far reflects the immediate market impact Wave is having on established providers.
- The entrance of Wave into Cameroon's mobile money market has initiated a shift in investing strategies among business competitors, such as Oracle and MTN, as they adjust to the disruptive pricing model.
- Wave's expansion in Cameroon is being facilitated by technology, specifically the use of e-money licenses and digital financial services, which enable more efficient investing and potentially promote financial inclusion.
