Since January 1, 2025, any cash transaction exceeding 100,000 FCFA is subject to a levy of 1% of the total amount. This measure, previously applied only to businesses, is now generalized to all citizens. Objective: reduce the predominance of cash in payments and encourage electronic transactions. In Cotonou and its surroundings, this regulation is transforming the habits of economic players, who are increasingly opting for Mobile Money as the main means of digital payment.
Monday, December 30, 2024. Sitting near the newsstand next to the Cotonou morgue, Josias, a 35-year-old motorcycle taxi driver, explains in the local language what he understood from the announcement by the Director General of Taxes. : “If you make a transaction using Mobile Money, additional fees will be added.” Next to him, a more informed colleague corrects: “The measure does not concern money transfers, but only direct transaction payments. For example, if I buy sheets of sheet metal or cement for an amount greater than 100,000 FCFA, it is preferable to pay by mobile phone, because it is not considered as a cash payment,” he explains. he, reassuring his comrade.
In addition to paying via Mobile Money, users also have the option of using checks or making bank transfers.
In Godomey, commune of Abomey-Calavi, it is 9 a.m. In front of his ready-to-wear boutique, Éclou Elias Koffi welcomes his first customer of the day this Friday, January 3, 2025. He offers different payment options, emphasizing Mobile Money: “You can pay via my Mobile Money merchant account . By using this account, you will not pay withdrawal fees. Some customers transfer from their bank account to their Mobile Money account to pay for their purchases. On the other hand, I don’t take checks, it wastes time at the bank,” he explains. For its domestic customers shopping online, Koffi also offers payments via Mobile Money upon delivery.
Dedicated shops and kiosks…
Mobile Money is today the most widespread electronic money service in Benin. Dedicated shops and kiosks have multiplied across the country. Christelle Akuélé Ayosso, president of the Association of the Network of E-merchants of digital financial services, notes: “At first, the populations were reluctant, but Mobile Money gradually became a habit for the Beninese. This government measure has accelerated this adoption.” Gaston Mawanou, a mobile money e-retailer, confirms this trend: “People no longer hesitate to deposit large sums on their phone to make payments. However, as soon as there is a network outage, users withdraw their money and switch to cash. This shows that we still need to strengthen confidence in this system.”
The executive decision aims to limit the use of cash to encourage electronic payments and strengthen banking. The BCEAO report on financial inclusion in UEMOA, published in October 2023, shows that Benin records the highest banking rate in the region, at 35.7%.
To maintain this dynamic, the 2025 finance law introduced this taxation of cash payments, thus encouraging citizens to open bank accounts, in microfinance or with electronic money providers.
-According to the Regulatory Authority for Electronic Communications and Postal Services (ARCEP), the use of electronic payments has exploded in Benin. Between 2022 and 2023, the volume of transactions increased by 27.03%, and their value by 85.2%, reaching 123.6 million operations for a total amount of 833.6 billion FCFA.
Benin still late
Introduced in Benin in 2010 with a single operator, Mobile Money has diversified with three providers: MTN Mobile Money, Moov Money, and Celtiis Cash. Despite notable growth, Benin remains behind compared to countries like Senegal.
André Sêvo, expert in financial engineering, explains: “Electronic money has not yet reached its full potential in Benin. Despite its growth, the room for development remains enormous. The authorities must support this sector to maximize its benefits.”
However, several challenges persist: monitoring of transactions by monetary authorities, the fight against money laundering, platform stability, data confidentiality and internet access. These elements are essential to guarantee the success and reliability of Mobile Money in Benin.
Bergedor HADJIHOU
