The BCEAO (Central Bank of West African States) officially launched its regional instant payment platform, PI-SPI, in Dakar. While initially announced with the participation of 86 financial institutions, the platform ultimately went live with only 45. A notable detail is the absence of French and Moroccan banking groups from the initial participants.

The Central Bank of West African States (BCEAO) on Tuesday inaugurated its Interoperable Instant Payment Platform (PI-SPI) in Dakar. The new infrastructure is designed to allow individuals, businesses, and governments across the eight-nation currency union to conduct instant payments regardless of their bank or access channel.

BCEAO Governor Jean-Claude Kassi Brou underscored the platform's accessibility, stating that PI-SPI "will allow every citizen to make instant payments, at any time." He also announced that transactions initiated by individuals would be free of charge.

Analysts praise the move. Jean-Noël Roffiaen, a regional expert, said the BCEAO's innovation "deserves recognition. It’s an essential step toward the digitalization of transactions, offering undeniable advantages to the end user, interoperability, free transactions for individuals, and instant processing."

The reform draws inspiration from Brazil’s PIX system. Launched in 2020, the system became the country’s leading payment method, recording 70 billion transactions in 2020. It has even surpassed cash, being adopted by 76% of the population. However, Roffiaen cautioned that in Brazil, the central bank had mandated the immediate integration of the system by all major banks and fintechs, a step the BCEAO has not taken.

Initial Participation Falls Short

The BCEAO had previously validated 86 institutions, comprising banks, microfinance structures, and electronic money issuers, to participate in the project, according to its August 1 communication. Yet, only 45 establishments were fully connected when the service was launched to the public. This figure remains far below the over 130 banks, dozens of electronic money issuers, and hundreds of decentralized financial institutions operational in the region.  This suggests a long road ahead for full adoption. 

One notable fact is the absence of some large banking groups from the launch. French Société Générale, which controls SG Côte d’Ivoire, WAEMU’s largest bank, and Société Générale Senegal, did not join the first wave. Moroccan groups, particularly Attijariwafa Bank, and regional lender Banque Atlantique, are also absent.

Bank of Africa (BOA), which operates across nearly all WAEMU member states, integrated only its Senegalese subsidiary. Another notable non-participant is Wave, the American mobile money leader in Senegal. Wave, which disrupted the market with its direct-to-consumer model, was not even included in the initial list of validated institutions. Some analysts suggest PI-SPI aligns with a momentum already set by Wave, positing that the fintech may not see a need for additional interoperability and could even view the new platform as a threat to its business model.

Strategic Caution or Financial Calculation

The BCEAO attributed the limited launch to technical and security constraints, assuring that unprepared institutions would join in phases. Yet, many observers believe the reluctance of the historically dominant French and Moroccan banks stems from strategic caution.

"This relative disengagement reflects a desire to wait for the system to prove itself," explained one regional financier. Other sources noted that banks derive a significant portion of their non-interest income from interbank transfer fees, a revenue stream that would be sharply reduced by PI-SPI’s free service, hitting a crucial source of profitability.

According to a source familiar with the matter, the BCEAO opted not to delay the launch schedule, even if it meant proceeding without certain institutions that were behind in their preparations or unable to ensure their systems complied with the new requirements.

Fiacre E. Kakpo