Share on: [addthis tool=”addthis_inline_share_toolbox_976m”]

What are our Future FinTech Champions learning at the moment? And what are their thoughts on the current development of FinTech? Read through this submission from one of our FFCs, Fitahiana Laura Auguste Mahandry, currently studying Finance @ Curtin University [Submission made in September 2024].

“Cashless and fearless: The FinTech ushering in a new age of digital finance” 

Picture this: You’re in a busy market in Lagos, Nigeria, or strolling through the colorful streets of Port Louis, Mauritius. You’ve found the perfect item to buy—a beautiful piece of fabric or maybe some fresh fruits. Now it’s time to pay, but instead of pulling out cash or counting coins, you simply take out your phone, tap a few buttons, and just like that, the payment is done! Sounds like magic, right? Well, welcome to the world of FinTech, where money has gone digital, and paying for things is as easy as sending a text.

FinTech, short for Financial Technology, is changing how we handle money. Gone are the days of carrying around thick wallets stuffed with cash. Instead, we’re moving toward a cashless world, where digital wallets, contactless payments, and cool new financial tools are making our lives easier and more secure. And the best part? It’s not just something for tech geeks or people in big cities—this revolution is happening all across Africa, from the buzzing markets of Nairobi, Kenya, to the quiet villages in Ghana.

What is FinTech anyway?

Let’s break it down: FinTech is like the superhero version of finance. It’s the use of technology to make financial services faster, cheaper, and more accessible. Remember when you had to stand in long lines at the bank to deposit or withdraw money? Or when sending money to a friend in another town was a big hassle? With FinTech, all that boring stuff is out the window. Now, you can send money, pay bills, and even save for the future all from your mobile phone.

In Africa, where many people do not have easy access to banks, FinTech is a game changer. (Molla 2023) It’s not just making life more convenient; it’s also bringing millions of people into the financial system for the first time. And it’s not just about banking, FinTech includes everything from mobile money services like M-Pesa in Kenya to digital wallets like my.t money in Mauritius. These tools are turning our phones into mini-banks, helping us manage our money with just a few taps.

Bye-Bye, Wallets! Hello, Digital Payments!

Let’s start with something we all do: buying stuff. Whether it’s your morning coffee, a new pair of shoes, or a bus ticket, we’re used to paying with cash or a card. But now, FinTech has introduced digital wallets and contactless payments. These are like magic wallets on your phone.

Imagine this: You walk into a store, pick out what you want, and when it’s time to pay, you simply wave your phone over a special machine. Ding! Payment done. No cash, no coins, not even a card. This is what digital wallets like Apple Pay, Google Pay, and PayPal allow us to do. And it’s not just in stores—you can use these apps to shop online, pay bills, or even split a dinner bill with friends.

Why is this such a big deal? First, it’s super convenient. You’re less likely to forget your phone than your wallet. Plus, it’s faster: you’re in and out without fumbling with change or waiting for a card to process. Second, it’s safer. Digital payments are secure because they use encrypted data to protect your money. (Siek 2019) Even if someone steals your phone, they won’t be able to access your digital wallet without your fingerprint, face ID, or password. 

Digital Wallets: your Phone is your new wallet

Digital wallets are one of the coolest inventions in FinTech! A digital wallet is an app on your phone that stores your money, just like a physical wallet stores cash and cards. But here’s the twist: with a digital wallet, you can do much more than just store money. You can pay for groceries, buy airtime, transfer money to a friend, or even pay for a taxi ride, all without touching a single note or coin.

Take Mauritius, for example. People are increasingly using digital wallets like my.t money and Juice by MCB to pay for things. Imagine going to the local shop, picking up some items, and when it’s time to pay, you just scan a QR code with your phone, and bam! The payment is made. No more waiting for change or dealing with old, crumpled bills. It’s fast, it’s easy, and it’s secure.

In Nigeria, apps like Paga and OPay are making it easier for people to go cashless. These apps are especially popular in urban areas, where they’re helping to reduce the need for physical cash. And the best part? Even if you don’t have a bank account, you can still use these services. They’re making it possible for everyone, regardless of their financial background, to participate in the digital economy.

Contactless payments: Just Tap and Go!

Now, let’s get into another fun FinTech invention: contactless payments. This is where you can pay for things just by tapping your card or phone on a payment terminal. No need to swipe a card or enter a PIN, just a quick tap, and you’re done.

Contactless payments are becoming more common in places like South Africa and Kenya, where people are using them in supermarkets, restaurants, and even public transport. In Mauritius, too, contactless payments are catching on, especially with the younger generation who are always on the move and looking for faster ways to get things done.

The beauty of contactless payments is that they’re not just convenient; they’re also safer. You don’t have to worry about someone seeing your PIN, and there’s less chance of your card getting cloned. Plus, in the age of COVID-19, contactless payments mean you don’t have to touch anything, a simple tap will do the trick.

Money management made easy: FinTech puts YOU in control

Managing money can be stressful. Whether it’s figuring out how much you’ve spent, trying to save for something big, or just making sure you have enough left for the month, it can all get overwhelming. But guess what? FinTech has come to the rescue with a bunch of apps that make money management as easy as playing a game.

For instance, there are apps that help you track your spending and set savings goals. These apps are like having a personal finance coach in your pocket. In South Africa, apps like 22seven allow users to link all their bank accounts and credit cards, so they can see exactly where their money is going. It’s like getting a big-picture view of your finances, helping you make smarter decisions.

In Nigeria, there’s an app called PiggyVest that encourages people to save by making it fun and rewarding. You can set up automatic savings plans, earn interest, and even participate in savings challenges with friends. It’s a simple but powerful way to build good financial habits, especially for younger people who might be new to managing money.

Empowering the Next Generation

Speaking of younger people, let’s talk about how FinTech is empowering the next generation. Today’s kids and teens are growing up in a world where everything is digital. They’re used to downloading apps, playing games online, and streaming music—so it makes sense that they’re also the ones leading the charge in adopting digital financial solutions.

By making money management easier and more intuitive, FinTech is empowering the next generation to take control of their finances from an early age. This is important because the sooner you start learning about money, the better prepared you’ll be for the future. For example, some FinTech apps are designed specifically for teens, teaching them how to manage money in a way that’s engaging and educational. Apps like Greenlight and GoHenry allow parents to set up a digital wallet for their kids, giving them a debit card and tools to learn about saving, spending, and budgeting. These apps turn money management into a game, making it fun and rewarding for young people to learn good financial habits.

In Mauritius, for example, teenagers and young adults are the biggest users of digital wallets and contactless payments. They’re embracing these new technologies because they’re fast, convenient, and fit perfectly into their tech-savvy lifestyles. And it’s not just about spending money—FinTech is also teaching them how to save and invest for the future.

In Kenya, FinTech platforms like M-Shwari are helping young people start saving and even get small loans directly from their mobile phones. This is a big deal in a continent where access to traditional banking services has been limited. By giving young people the tools to manage their money digitally, FinTech is setting them up for a brighter financial future.

Breaking down barriers

One of the most amazing things about FinTech is how it’s bringing financial services to people who have been left out of the traditional banking system. In many parts of Africa, especially in rural areas, banks are far away and hard to reach. But with FinTech, all you need is a mobile phone to access a whole world of financial services.

In Ghana, mobile money services like MTN Mobile Money are making it possible for people in even the most remote villages to send and receive money, pay bills, and save for the future. It’s not just about convenience—FinTech is providing a lifeline to millions of people, helping them to participate in the economy and improve their lives.

And it’s not just about making payments. FinTech is also helping small businesses grow by giving them access to digital payment systems and loans. In countries like Tanzania, where many businesses operate in the informal sector, FinTech is providing them with the tools they need to grow and thrive.

Is digital money safe?

Now, you might be wondering: Is all this digital stuff really safe? After all, we’re talking about money here, and no one wants to risk losing it. The good news is that FinTech companies are very serious about security. They use advanced technology to protect your money and personal information, so you can use these services with confidence.

For example, when you make a payment with a digital wallet, your financial details are encrypted. This means they’re turned into a secret code that only the intended recipient can read. Even if someone tries to hack into the system, they won’t be able to access your information.

Plus, many apps use something called two-factor authentication, which means you have to confirm your identity in two different ways—like entering a password and then a code sent to your phone. This makes it much harder for anyone to access your accounts without your permission.

Of course, it’s still important to be careful. Just like you wouldn’t leave your wallet lying around, you shouldn’t share your passwords or click on suspicious links. But overall, digital finance is designed to be safe, and as long as you follow some basic safety tips, you can use it without fear.

The Future is digital, and It’s here to stay

So, what’s next? The FinTech revolution is just getting started, and the future looks incredibly exciting. We’re going to see even more advanced ways to handle money, like using biometric payments (where you pay with just a fingerprint or a face scan) or blockchain technology that makes financial transactions even more secure and transparent.

In Africa, where the mobile phone is king, FinTech is going to keep growing and evolving. We’ll see more people using digital wallets, more businesses going cashless, and more communities benefiting from access to financial services. And in Mauritius, the government is already working on creating a FinTech-friendly environment, encouraging innovation and attracting investment.

As we move toward a cashless future, it’s clear that FinTech is not just a trend—it’s a powerful force that’s transforming the way we live and do business. Whether you’re in a big city or a small village, FinTech is bringing the world of finance to your fingertips, making life easier, safer, and more fun.

Conclusion: Ready, Set, Go Cashless!

So, there you have it—FinTech is making it easier than ever to manage money, whether you’re a tech-savvy teenager in Port Louis or a farmer in rural Kenya. With digital wallets, contactless payments, and all the other cool tools FinTech offers, going cashless is not just possible—it’s becoming the new normal.

The next time you’re out shopping, paying bills, or sending money to a friend, why not give FinTech a try? You’ll see just how simple and convenient it is to go cashless and fearless. Welcome to the future of finance—where money is digital, and life is easier for everyone.