Africa must fully digitise before it can go cashless

Daniel Monehin, Mastercard’s executive VP of remittances and head of financial inclusion. FILE PHOTO | NATION 

By VICTOR KIPROP
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Mastercard’s executive VP of remittances and head of financial inclusion Daniel Monehin spoke to Victor Kiprop about the continent’s finance industry.

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Access to finance remains a major challenge in sub-Saharan Africa. What will it take to achieve financial inclusion sooner in Africa?

Achieving total access to finance is an ambitious goal that will require partnerships between all stakeholders at all levels including governments, innovators and banks. Different players will always have a competitive advantage over others in different parts of the value chain.

Africa has been described as the hub of fintech. How are these innovations helping grow financial inclusion on the continent?

The rise of fintech in Africa cannot be separated from the rise in Internet penetration.

The traditional payments and financial services are based on old technologies while digital technology and economies are allowing faster and easier use resulting in high level of customer satisfaction and experience which in turn drive heavy usage in the region.

How viable is the idea of a cashless society?

The most important thing is ensuring all areas have the necessary infrastructure for lending and borrowing as well as making payments and transfers.

Once we have a fully digitised environment then can we begin the discussion about going cashless.

Digital disruption has invaded Africa’s financial services sector. How has it affected the way you do business?

Mastercard is not trying to cope with disruption. We are trying to define and leverage on it as business advantage.

Our vision is ‘a world beyond cash’ therefore we’ve dedicated extensive resources to partnering with market leaders and developing solutions including Masterpass QR to addresses challenges with the acceptance of electronic payments in micro, small and medium enterprises.

Mastercard has also invested in blockchain to help drive electronic payments in a more efficient cost effective manner.