MFS Africa, Africa’s largest digital payments network, has partnered with Western Union to launch a cross-border remittance service, with Madagascar chosen as the pilot location. This decision to start in a smaller African market has intrigued fintech observers, yet Madagascar’s thriving mobile money landscape provides a strong foundation for the launch.
Madagascar, like East African nations Kenya and Tanzania, has embraced mobile money, which has outpaced traditional banking. With over 10 million mobile money users, representing a third of its population, Madagascar is witnessing rapid growth in digital financial services driven by mobile operators like Telma, Orange, and Airtel. Limited banking infrastructure in the country’s rural and agricultural regions has allowed telcos to step in, making mobile wallets essential for many. Financial institutions are also collaborating with telcos to deliver credit and savings solutions directly to users’ phones, a trend that has significantly boosted financial inclusion.
Madagascar’s strong ties with France, its former colonial power and key trade partner, also position it as a major remittance hub, especially for transactions from France, one of Western Union’s primary markets. According to Kumar Shourav, MFS Africa’s Managing Director for Money Transfer Operators, the partnership with Western Union will tap into this existing demand by facilitating quick transfers directly to Malagasy mobile wallets through MFS Africa’s extensive API network.
MFS Africa’s API currently connects over 400 million mobile money wallets and 200 million bank accounts across 35 African nations. The network also integrates with major global remittance players like MoneyGram, WorldRemit, and Xoom. The pilot in Madagascar will serve as a blueprint for wider rollouts across the continent, aligning with MFS Africa’s goal of unifying Africa’s fragmented financial systems under one interoperable network.
