Senegal’s dynamic financial technology (fintech) sector is on the verge of welcoming a new player, Quickpay, a subsidiary of the influential EDK Group, owned by businessman Demba Ka. Quickpay has recently obtained an Electronic Money Institution (EMI) license from the Central Bank of West African States (BCEAO), positioning it to directly compete with established giants like Wave and Orange Money. This regulatory approval could herald a significant shift in Senegal’s rapidly growing mobile money market.
Quickpay’s entry into the market comes with an interesting backstory. The company has strategically recruited experienced personnel from Wari, a once-leading Senegalese mobile money service that has faced challenges due to the legal issues surrounding its founder, Kabirou Mbodje. Oumarou Sabaly, formerly Wari’s technical director, has taken on the role of General Manager at Quickpay, while Stanislas Oumar Sané, Wari’s former chief compliance officer, has also joined the new venture in a similar capacity. This infusion of seasoned talent indicates that Quickpay is not merely entering the market but is poised for a swift and impactful launch.
The timing of Quickpay’s introduction is particularly noteworthy. Senegal has experienced explosive growth in mobile money adoption, with BCEAO data revealing a remarkable 63% increase in electronic money account subscriptions in 2021 alone. This surge reflects a broader trend across the West African Economic and Monetary Union (WAEMU). The digital payment revolution has been largely driven by Wave, a fintech unicorn that disrupted the market by offering fee-free transactions and utilizing app-based technology to circumvent the traditional dominance of telecom operators like Orange Money.
Initially, Orange Money, backed by the French telecommunications giant Sonatel, held a significant advantage due to its established infrastructure and extensive user base. However, Wave’s innovative strategies, including the distribution of physical cards with QR codes for non-smartphone users, allowed it to quickly gain traction and challenge Orange Money’s dominance. Wave’s success, bolstered by substantial international investment—including a $200 million funding round and a subsequent $91.5 million loan from the World Bank’s International Finance Corporation—has highlighted the demand for alternative mobile money solutions in Senegal.
Now, Quickpay aims to establish its own presence in this competitive landscape. As a subsidiary of the EDK Group, which has diverse interests in fuel distribution, fast food (notably Djolof Chicken), and retail, Quickpay stands to benefit from the significant resources and influence of its parent company. Demba Ka, the founder and CEO of EDK Group, is a prominent figure in Senegalese business, recently engaging with President Bassirou Diomaye Faye, underscoring the group’s national significance and potential political connections. This backing could provide Quickpay with a vital advantage in terms of brand recognition and market penetration.
Quickpay’s mission is to promote financial inclusion in Senegal and across Africa, aligning with the broader goal of extending digital financial services to the unbanked population. The EMI license granted by the BCEAO empowers Quickpay to independently issue and manage electronic money, offering greater flexibility in designing and delivering services tailored to local needs. The company emphasizes its identity as a “100% Senegalese entity with agile management,” along with a commitment to quality services rooted in Senegalese culture, which could resonate with consumers seeking locally-driven solutions.
However, Quickpay faces significant challenges. Wave has already established a strong foothold with its disruptive pricing model and user-friendly app, while Orange Money, with its extensive network and loyal customer base, remains a formidable competitor. To succeed, Quickpay will need to differentiate itself through innovative services, competitive pricing, and a strong focus on user experience and security. The expertise of its newly appointed leadership team, particularly their deep understanding of the Senegalese mobile money market gained at Wari, could prove invaluable in navigating these challenges.
The legacy of Wari serves as both an inspiring example and a cautionary tale for Quickpay. Once celebrated for pioneering mobile money in Senegal, Wari’s reputation has been tarnished by the recent conviction of its founder for financial mismanagement. This situation underscores the importance of robust corporate governance and ethical leadership in the fintech sector. By hiring experienced compliance professionals, Quickpay appears to be taking these lessons seriously.
The entry of Quickpay into Senegal’s mobile money market signifies a further maturation of the country’s fintech ecosystem. Increased competition could lead to lower transaction fees, more innovative services, and ultimately, greater financial inclusion for Senegalese citizens. The competition for market share among Quickpay, Wave, and Orange Money will be closely monitored, as it will not only shape the future of mobile payments in Senegal but also provide valuable insights for other developing economies in Africa seeking to embrace the digital finance revolution. With its new license, experienced leadership, and the backing of a powerful conglomerate, Quickpay is set to embark on an intriguing journey in Senegal’s financial landscape.
