Mobile Money Unicorn Wave Chases Banking As Regulation & Price Wars Bite

Wave, the fintech unicorn that disrupted Francophone West Africa’s payments market, is now seeking a banking license. The move marks a shift as the company faces pressure from regulators and intense competition from telecom rivals.

Legal documents filed in Abidjan show that “WAVE BANK AFRICA S.A” was incorporated on August 4 and formally registered on August 22. The entity is a public limited company with a share capital of CFA francs 20 B, or approximately USD 35 M. Its stated purpose is to conduct banking activities in Côte d’Ivoire, including taking deposits and providing credit.

The pivot comes at a critical time for the startup. On September 30, the Central Bank of West African States launched a new regional instant payment system. A list of 31 institutions authorised to use the platform included multiple banks and mobile money operators, but notably excluded Wave and another major player, MTN.

This regulatory development coincides with a brutal price war with incumbent telecom companies. These firms have adopted Wave’s own low-cost tactics. In Côte d’Ivoire, MTN removed withdrawal fees entirely. In Cameroon, Orange Cameroon set transfer fees to zero just before Wave’s planned launch there.

These challenges threaten the viability of Wave’s original business model, which relied on low-fee transactions. The registration of a bank, filed just days before a central bank deadline for payment institutions, signals a new strategy.

Becoming a licensed bank would grant Wave automatic access to central bank infrastructure. More importantly, it allows the company to move beyond payments into the provision of credit, a potential new source of revenue.

The bank will be led by Coura Carine Tine as President of the Board and Bamba Abdoulaye Katier as Director General. The establishment of Wave Bank Africa represents the company’s attempt to secure its future by fundamentally changing its business.