The rise of mobile money has transformed the country’s financial ecosystem. While access to mobile financial services has become easier, their usage still needs to be expanded, particularly for daily payments.
Mobile money has become essential in the Malagasy financial landscape. Several companies are accelerating their efforts to attract more users and expand access to digital financial services. Yesterday, during a press meeting at the Mvola headquarters in Ankorondrano, company officials presented their new strategic directions. “Over the last two years, Mvola has been a victim of its own success. We have grown faster than expected, and the market has developed considerably,” stated Alexandre Castel, CEO of the company.
According to figures released by the company, nearly 4 million people use Mvola, and more than 60,000 cashpoints cover the territory. More than 50,000 merchants also accept payments via this service. Merchant payments now occupy a central place in the company’s strategy, in a market marked by strong growth in transactions.
“The challenge is to make the Mvola merchant payment service simpler and more attractive for daily use. For the customer, the principle is now clear: zero fees when paying at a Mvola merchant. The fees are covered by the merchant. For merchants, this development allows them to offer their customers a fee-free payment method and comes with dedicated benefits,” explained Alexandre Castel. Among these benefits, the company announced three free withdrawals per week for merchants, up to 250,000 Ariary per withdrawal.
Merchant payment thus constitutes a development axis for mobile money operators. More broadly, according to figures from the International Finance Corporation (IFC), the value of transactions made by mobile phone doubled between 2021 and 2023. Data from the National Coordination for Inclusive Finance (CNFI) also illustrates this progression: in 2023, 342 million transactions represented a total amount of 38,161 billion Ariary. Between 2021 and 2023, the number of active accounts increased by 48%.
Mobile money and mobile banking are taking on an increasing role in financial practices in Madagascar. In a country where a large part of the population lives in rural areas and where logistical constraints remain significant, the mobile phone facilitates access to financial services.
The traditional banking rate is around 18% of the population, according to Banky Foibe statistics, while mobile money exceeds 10 million active accounts, according to the IFC. However, these indicators measure different realities: the number of accounts does not necessarily correspond to the number of users, as one person can hold several.
This expansion is part of a global dynamic. According to the report by the GSMA (Global System for Mobile Communications Association), the value of mobile money transactions exceeded $2.1 trillion in 2025. While it took twenty years to reach $1 trillion, this amount doubled in just four years. The number of registered accounts has reached 2.3 billion.
According to the Digital Virgo platform, “this acceleration shows that the value of transactions is now increasing faster than their volume, a clear sign that users are engaging in deeper and more complex financial activities.” In Madagascar, operators are seeking to support this evolution by developing new uses, particularly payments to merchants.
Captured & Published at: 2026-10-03 05:53:57 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/10/inclusion-financiere-la-digitalisation.html
