Fintech for Inclusion: Building a Bank for the African Majority
On November 6, Social Impact Lab welcomed 2024 Yale World Fellow Tarek Mouganie for a powerful discussion on using technology to drive financial inclusion in Africa. Drawing from his journey in founding Affinity Africa, a digital bank dedicated to providing accessible financial services to micro-, small-, and medium-sized businesses, Tarek shared insights from the challenges and triumphs of building a financial ecosystem for underserved communities.
Tarek began the session by reflecting on his early interactions with Yale students (from the Global Social Entrepreneurship course at SOM) who came to Ghana in 2016, observing that some of the most impactful contributions to his work emerged from these student collaborations. Sharing his background as an athlete, a PhD in Physics, and finance expert, he described his return to Ghana a decade ago as driven by a vision for development and financial inclusion. However, securing a banking license for Affinity Africa turned into a grueling 10-year journey, a process he likened to “running a marathon as a sprint, without knowing where your finishing line is.”
Read more: https://som.yale.edu/story/2025/fintech-inclusion-building-bank-african-majority
Payments as a cornerstone of transactional banking in Africa
Payments continue to be at the heart of business and economic activity. Cross-border payments have long been a challenge facing businesses in Africa. Now, thanks to collaboration between industry stakeholders, new innovative solutions are helping to improve the payment experience.
The African economy is set to outperform the rest of the world in economic growth over the next two years according to the African Development Bank Group, with real gross domestic product (GDP) predicted to average around 4% in 2023 and 2024. With its growing population and increasing access to the internet, Africa presents significant opportunities for businesses active in the region and those considering expanding into it.
Digital Africa Is Now. What Are The Leading Initiatives That Are Driving The Market Transformation
The African continent continues to witness a rapid transition from cash-based economies to digitally enabled financial ecosystems. Despite historically high levels of unbanked populations across the region, with almost 350mil people being financially excluded, countries such as Rwanda, Burundi, Somalia, the Democratic Republic of Congo, Mali, Senegal, Kenya, Tanzania, and Guinea, the last two years have shown a marked improvement in financial inclusion. Mobile payments and e-wallets solutions, agent banking, and digital payment platforms have enabled unprecedented growth in access to formal financial services.
For instance, in Kenya, over 84% of adults now have access to at least one form of mobile financial service, while Senegal’s mobile banking accounts reached nearly 12 million by mid-2024, covering over 80% of its adult population. Meanwhile, in Tanzania, over 80% of the adult population engages in mobile money services as of 2024 according to Tanzania Communications Regulatory Authority. Progress is evident. Somalia has seen digital payments usage climb with over 160mln people are enjoying the mobile payments service. Such trends are mirrored regionwide, underlining findings from the World Bank that Africa hosts half of the nearly 700 million digital financial services users worldwide.
Nevermined raises $4m to build ‘PayPal for AI’
Generative Ventures led the round, with participation from Polymorphic Capital, Near, Halo Capital, Factor Capital, Lyrik Ventures and Arca.
Nevermined is developing the “PayPal for AI” to enable seamless payments between AI agents. The company’s protocol is designed to address the unique challenges of AI-Commerce, where, it says, traditional rigid payment systems fall short.
Nevermined helps AI developers monetise their applications by managing payments, usage tracking, and credit systems – essentially acting as a finance and billing management platform for AI agents and tools.
Read more: https://www.finextra.com/newsarticle/45315/nevermined-raises-4m-to-build-paypal-for-ai
Revisiting Africa’s Mobile Money Boom
The buzz around financial modernization in Africa is louder than ever. Ethiopia is preparing to re-open its stock exchange after decades of political and economic turmoil, and the world’s largest digital bank, Nubank, has invested $150 million in South African fintech Tyme to support its international expansion. I previously wrote about the mobile money boom on the African continent in 2020. Now, nearly four years later, it’s time to re-examine the trends shaping the financial landscape.
Mobile Money: A Catalyst for Financial Inclusion
Mobile money has continued to redefine Africa’s financial landscape, growing from a regional innovation to a cornerstone of economic activity. In 2023, the mobile money market reached $674.8 million. Projections indicate it will grow at a CAGR of 19.3%, reaching $3.45 billion by 2032. This growth is driven by increasing smartphone adoption, improved connectivity, and a young, tech-savvy population eager to embrace digital financial tools.
Read more: https://www.forbes.com/sites/ilonalimonta-volkova/2025/01/12/revisiting-africas-mobile-money-boom/
Lyca Mobile and Revolut Pay launch first MVNO partnership in the UK
Lyca Mobile, the UK’s leading mobile virtual network operator (MVNO), has partnered with Revolut Pay, marking the neobank’s first MVNO collaboration in the UK.
The partnership aims to revolutionise payment experiences for Lyca Mobile customers by simplifying and enhancing payment processes, according to FF News.
By integrating Revolut Pay’s advanced technology, customers gain access to automated subscription and bill payments, real-time payment notifications, and one-click top-ups.
These features aim to eliminate repetitive entry of banking details, making transactions faster and more convenient.
Google Pay set to launch in Saudi Arabia in 2025
RIYADH — The Saudi Central Bank (SAMA) has partnered with Google to introduce Google Pay in Saudi Arabia during 2025 via the national payment system mada.
Google Pay will offer users a secure and seamless way to make purchases in stores, on apps, and online.
It will also allow users to conveniently add and manage their cards through Google Wallet, ensuring enhanced convenience and safety.
This strategic agreement aligns with Saudi Vision 2030’s goals to enhance the Kingdom’s digital payments ecosystem. It underscores SAMA’s commitment to creating a robust digital payments infrastructure and transitioning toward a less cash-dependent society by implementing advanced, globally recognized payment solutions.
Read more: https://www.zawya.com/en/business/fintech/google-pay-set-to-launch-in-saudi-arabia-in-2025-ukx7uge3
