Can Wechat and Alipay Increase Financial Inclusion in Africa?

With Africa’s economy growing at such a rapid rate there has been concerns that the growth has not been inclusive to the low-income households. In 2007 M-Pesa revolutionised the way that Kenyans access banking products and it’s with this notion that WeChat went on to create WeChat Africa. Due to the recognized success of M-Pesa, WeChat Africa is already excelling with various partners and is aiming to further expand the apps inclusion and make the app the focal point of a person’s day to day life.

The revolutionary changes that M-Pesa brought to the everyday lifestyle of African people, WeChat saw an opportunity in the market to introduce the app. WeChat has already proven popular in China, with the mobile payment market said to be worth $5.6 trillion, with transactions ranging from luxury brands to street butchers. Investors and executives in Africa are not new to the concept, having already experienced the potential through M-Pesa. With M-Pesa being released in 2007 and WeChat Africa being released in 2013, M-Pesa has an additional 6 years of established growth and recognition when compared to WeChat. Due to this, M-Pesa is still a strong holder of the market and is proving to be a formidable competitor in Africa and the favoured option out of the three.

Regardless, the concept of merging financial services with technology as mainstream as mobile phones, has already proven to be a success, assisting low income earners with access to money and allowing the rapid growth of the economy to be inclusive of all levels of society.

This report looks into the ways that Africa has already experienced the technology to create financial inclusion, as well as how WeChat and AliPay are trying to enter the market in Africa. Along with the importance these applications have on both society and economical aspects throughout Africa.