Fast-tracking female founders: Have we found the winning formula?

Posted on by Saumya Dixit

As of December 2024, India boasted more than 73,000 startups with at least one female director. However, the picture is bleak when it comes to India’s unicorns—only 15% have at least one female founder. This gender gap in leadership is more evident in sunrise sectors, such as climate tech, where female startup owners comprise just 39%, against a national sector-agnostic average of 48%.

At MSC, we have a rich history of supporting the acceleration and incubation of entrepreneurs who work toward financial and digital inclusion. This time, we designed WEP-उन्नति (Unnati)—a collaborative program by MSC, the NITI Aayog’s Women Entrepreneurship Platform (WEP), and the Small Industries Development Bank of India (SIDBI). WEP-उन्नति (Unnati) is dedicated to accelerating the entrepreneurial journey of women who create solutions for a greener planet.

As part of its inaugural cohort in February 2024, WEP-उन्नति (Unnati) called for applications across India and selected 15 women “greenpreneurs.” They represented 12 Indian cities and 11 industries, which include renewable energy, agro-waste management, climate-smart animal husbandry, sustainable fashion, and eco-tourism, among others. We provided them a continuum of support to address six ecosystem needs recognized by MSC and WEP’s research as essential for the growth of women-owned businesses.

In this piece, MSC offers up several “cheat codes” for entrepreneurship support organizations (ESOs) looking to dip their toes in empowering women-led climate startups.

What did WEP-उन्नति (Unnati) teach us?

Cheat code #1: Mentorship guarantees the best results—if done right

Our research reveals that only one in every four Indian women entrepreneurs can access entrepreneurial mentorship. Existing mentorship support lacks targeted goal setting and periodic monitoring, yet fails to set a fixed number of sessions to maintain structure. This dearth of clarity and regular check-ins often results in disengaged mentors and mentees who coast. Yet the biggest misstep is failing to adapt as strong programs evolve only by learning from the cohort’s feedback and refining their experience continuously. Providing a four-month-long, one-on-one mentorship then became an evidence-informed choice for us—one designed thoughtfully to avoid these common pitfalls.

“My engagement with a WEP-उन्नति (Unnati) mentor who helped me precisely where I needed was the best thing to happen to my business”, shared Vandita, whose flagship product is a nutrient-rich, chemical-free growing medium made from tender coconut waste.

We invited each entrepreneur to share the top three growth-related challenges. We then carefully matched all 15 founders with 12 industry experts (handpicked from a pool of 100+ experts) who could guide them to resolve these specific challenges. Together, our mentors brought 250+ years of industry and 100+ years of mentoring experience. They collectively have guided 12,000+ entrepreneurs, 56% of whom were women. We facilitated meetings and followed up with the mentors and the mentees for feedback and course correction—a practice that helped make the engagement more meaningful.

Our mentors triggered a shift towards profitability for 80% of the cohort. Saloni Godbole, a producer of nutraceuticals for livestock, notes, “I came to WEP-उन्नति (Unnati) as a scientist but am leaving here as an entrepreneur.” Her cattle clients were the only ones who survived a statewide epidemic in Maharashtra.

We had two key takeaways from this experience for those of you who want to empower entrepreneurs. One, look for industry experts who match the entrepreneur’s most pressing needs and are sensitive to working with someone at that stage of business. And two, spend time setting the table right so the mentors and mentees know exactly what to expect from each other.

Arundhati Kumar, sustainable fashion mentor, said, “This has been one of the best program-managed accelerators I have been part of, both as a mentor and a participant. Thank you for the rigor you brought to the process. It has helped the mentees and mentors stay accountable and committed.”

Cheat code #2: Networking improves confidence, but most entrepreneurs’ networks are poor.

Our cohort gained direct benefits from networking, such as discussions with industry leaders, soft commitments from financiers, connections with government officers, and trust in civil society. However, since this skill does not come naturally, we made an intentional effort through networking mixers, training sessions, and meetings with important public, private, and civil society stakeholders.

As an outcome of WEP-उन्नति (Unnati) introductions, Vanita Prasad, who had enjoyed the first-mover advantage with her cocktail of wastewater treating microbes, went on to build great advocacy for her industry niche in India and abroad. She connected with relevant public and private sector stakeholders, spoke at roundtables in state capitals and remote areas, and demonstrated her solution’s efficacy in front of industry giants, such as Reliance Industries.

Our research finds that women entrepreneurs in suburban and rural markets need greater networking opportunities than their male counterparts. A couple of WEP-उन्नति (Unnati) entrepreneurs also came from Tier 2 towns and echoed our findings. In the case of Pooja, these networking opportunities permitted her to export her offerings. Meanwhile, for Neha, it led to the birth of an eco-village.

The networking sessions improved confidence and risk-taking abilities in 100% of cohort participants. The WEP-उन्नति (Unnati) brand also unlocked positions in many other accelerators for the cohort, such as IIM-Bangalore’s NSRCEL.

Cheat code #3: Striking the correct balance between domain-specific and general entrepreneurial skills training

Our cohort, which includes biotechnologists, chemists, and teachers, had sector expertise but lacked foundational business knowledge. For Pooja, learning to build resilience to climate-induced risks that doom her mushroom supply chain was as crucial as learning to brand, market, and deliver elevator pitches to investors. But for artisanal products retailer Aastha Ratan, only learning to brand, market, and pitch was key. This is why we had laid out our basket of 21 intensive group sessions, which amounted to 600 person-hours, with some that built climate expertise and others that focused on legal, compliance, go-to-market strategy, alongside psychosocial challenges, among other aspects. We also ensured each trainer who was onboarded onto WEP-उन्नति (Unnati) was available to discuss the cohort’s unique business challenges one-on-one.

What were our big wins?

When we started working with the cohort, we found them short of practical revenue models, such as bookkeeping hygiene, sales trackers, financial projections, and legal requirements that would have made them financeable. Therefore, our training sought to strengthen the cohort’s credit and investment readiness, which led to impressive results. By the time we finished, six out of 15 women “greenpreneurs” had secured funding.

Such was the case of Renu Tupsamudre’s pitch for a cleaning agent to wash containers for reuse, which raised INR 50,00,000 in seed funding and bagged her the WEP-उन्नति (Unnati) “Greenpreneur of the Year” title. Meanwhile, Victoria D’Souza’s recycling business raised INR 35,00,000.

Even those who could not raise funds showed they were on the right track. Prerna’s ecotourism aggregator platform achieved her highest turnover to date, while Vanita saw a 50% increase in quarterly revenues. Shilpi’s sustainable clothing company achieved its annual turnover target in just five months, and 100% of the cohort could decide which funding instrument was, or would be, best for their business. This was made possible by triggering a shift from prioritizing social and environmental impact (a global behavior that has a greater incidence in women than men) to balancing it with economic gains.

The graphic below shows a snapshot of the programmatic (economic and psychosocial) outcomes of WEP-उन्नति (Unnati):

Lessons from WEP-उन्नति (Unnati) highlighted that high-growth women entrepreneurs, especially in niche areas, such as emissions reduction, circularity, and renewable energy, need support curated across key needs of domain-specific training, finance, market linkages, networking, mentorship, and compliance. This support must be sequential and fit for purpose based on their entrepreneurial stage, appetite for risk, growth, and expansion, as well as industry trends.

Today, more than 50% of the cohort successfully mobilized funds upward of INR 7.5 crores (USD 850,000). With this among other achievements, the WEP-उन्नति (Unnati) program has established strong proof of concept that such ecosystem-enabling entrepreneurship programs are effective and work well to serve the clients in desperate need of capital. Through WEP-उन्नति (Unnati), women can now give flight to their wings and build a brighter future for themselves, their families, and their community.

A race against cyber threats: Biometric adoption in Southeast Asia’s banking sector

Posted on by Saumya Dixit

An older man in Vietnam from a low-income background lost his entire pension due to a fraud that has become all too common in the developing world. He received a call from someone who had posed as a bank employee and asked the older man to share his OTP over the phone. He fell for the scammer’s pitch and soon, his precious pension vanished from his bank account.

Cyber scams now generate more than USD 43.8 billion annually across Southeast Asia. As digital finance proliferates, cybercriminals are now more advanced. They use tools, such as artificial intelligence (AI), deepfakes, large language models (LLMs), and malware to steal data, impersonate individuals, and bypass security systems. In response, banks across the region have raced to adopt biometric authentication. Banks now use customers’ fingerprints, faces, or voices to verify identity and to protect against these evolving cyber threats.

Online financial fraud has surged across Southeast Asia in recent years. In 2024 alone, Thailand recorded more than 14,000 cases, which makes it a regional hotspot, followed by Indonesia with 48,000. Thailand’s high rates of fraud stem from low public cyber awareness and scam operations in neighboring countries, such as Cambodia, Lao PDR, and Myanmar. Scammers have started to use smart devices and sophisticated tactics widely, which escalates the issue.

Southeast  Asian countries have taken measures to safeguard their citizens against cyber fraud, particularly in finance, which is a primary target sector. In response, financial institutions and FinTech companies have adopted advanced methods to authenticate customers and ensure secure services. However, traditional authentication methods still face limitations. Passwords, which are one of the standard knowledge-based authentication (KBA) methods, are often reused and forgotten by users. This exposes users to phishing or data breaches that increase cybercrime risks and user friction. Cyber attackers can manipulate PIN codes through simple methods, such as social engineering.

Meanwhile, possession-based authentication (PBA) methods, such as SMS-based OTPs, are easy to deploy but vulnerable to SIM-swapping. Similarly, QR code authentication poses risks as bad actors can copy or tamper with them. It relies on a separate scanning device and often fails in poor environmental conditions, such as low lighting.

Biometrics-based authentication has addressed the shortcomings of traditional security solutions and has emerged as a more reliable and secure technology in recent years.

Biometric authentication verifies an individual’s identity through unique biological characteristics, such as fingerprints or facial features.  Unlike passwords, biometric data is complex to imitate and not subject to human errors, such as forgotten passwords. Many banks now combine biometrics with other verification procedures to establish a multi-factor authentication (MFA) system, which improves customers’ experience and strengthens digital security.

Across Southeast Asia, governments have taken strong action to build a banking security ecosystem using biometrics. Malaysia has adopted biometric authentication to enhance payment security after Bank Negara’s 2023 directive to phase out SMS-based OTPs with more secure measures. Major banks, such as Maybank, CIMB, and Public Bank, use biometric features, such as facial recognition and fingerprint scanning, in their mobile apps and ATMs. These technologies allow customers to log in, make transactions, pay bills, shop online, and withdraw cash easily.

Decision 2345 by the State Bank of Vietnam implements high security solutions in digital and banking payments. As of July 2024, banks must adopt biometric authentication for high-risk transactions. These include money transfers worth more than VND 10 million or exceeding VND 20 million per day, and for first-time mobile banking use or access from a new device. Verification is based on the verification of customers’ biometric data with information stored in chip-based ID cards, which is the Vietnam Electronic Identification (VNeID) system, or bank databases.

Singapore promotes biometric authentication under the Payment Services Act 2019, which was enacted in . It requires robust customer and transaction verification for digital payment services. The Monetary Authority of Singapore (MAS) has also issued detailed guidelines that encourage financial institutions to adopt biometric technologies that help strengthen security and improve authentication. In response, banks, such as DBS, Oversea-Chinese Bank (OCBC), and United Overseas Bank (UOB) have implemented facial and fingerprint recognition features in their mobile apps and ATMs.

In March 2023, the Bank of Thailand mandated biometric authentication for high-value transactions. Starting June 2023, banks must use facial recognition for transfers worth more than THB 50,000 (USD ~1,350) per transaction or THB  200,000 per day (USD ~6,160). The central bank issued official guidelines on biometric technology in financial services, effective September 2023. In response, banks, such as Siam Commercial, Kasikornbank, and Standard Chartered Thailand, implemented facial and fingerprint recognition to ensure seamless, secure customer transactions.

The central bank of the Philippines, the Bangko Sentral ng Pilipinas (BSP), promotes advanced security technologies to replace the traditional use of OTPs, after the Anti-Financial Account Scamming Act. Banks such as the UnionBank, Philippine National Bank (PNB), and Asia United Bank (AUB) pioneer this area. It implemented voice, facial, and fingerprint scanning in its banking services.

Step-by-step overview of biometric adoption in the finance sector across Southeast Asia

The adoption of biometric technology across Southeast Asia aligns closely with national goals for digital transformation and economic development. As digitalization grows globally, each Southeast Asian country has developed a national digital identity system that uses biometric data to serve its citizens. Citizens must navigate cyberspace securely and confidently to thrive in a digital economy, while banking systems must keep up to remain relevant and effective.

In the long run, biometric technology can serve as a secure gateway to financial inclusion. Banks can simplify access to financial products and services through biometric verification, especially for those previously excluded. With people’s needs at the center, biometrics offer a secure, efficient, and inclusive path toward safer digital finance.

Toward a trusted digital nation: A multicountry analysis on data protection in Africa and Asia

Posted on by Deepesh Singh

MicroSave Consulting’s thought leadership report, “Towards a Trusted Digital Nation”, offers a multi-country analysis of data protection laws across 12 nations in Asia and Africa. The study uses a robust assessment framework to uncover regulatory and enforcement gaps, highlights global best practices from GDPR-aligned regimes in the EU, UK, Japan, and the U.S., and benchmarks them against regional progress. It recommends practical reforms such as tiered consent, independent data authorities, and public awareness initiatives. The report reinforces that global alignment and strong governance are key to building secure, inclusive, and trusted digital economies in the Global South.

Cross-border payments in Africa: What is changing and why it matters

Posted on by Saumya Dixit

The landscape of cross-border payments

Njeri, 34, is a small entrepreneur in Kenya who sells garments and needs to pay a supplier in Uganda. On the southern tip of the continent lives Jackson, a 40-year-old South Africa-based diaspora member who needs to send funds back home to his family in Ghana. In Africa, such cross-border transactions are more than a mere exchange of funds across nations. They serve as the vital lifeblood of entire economies that support millions of people who live, work, hope, and dream across geographies.

Yet these hard-working people must struggle with high costs, slow processes, and limited access to reliable, affordable, and readily available cross-border payment solutions, which hinder trade and stifle economic growth. The market faces several challenges, which include high remittance costs of 7.4% to 8.3%, regulatory fragmentation, foreign exchange liquidity issues that cause USD 5 billion in annual losses, and a continued reliance on offshore USD/EUR clearance that increases transaction costs.

Despite these setbacks, a glimmer of hope has emerged in the steady transformation of cross-border payments across Africa. As of 2025, the market is worth approximately USD 329 billion. It is projected to triple to USD 1 trillion by 2035, driven by FinTech innovation, the rise of mobile money, and increased intra-African trade. This expansion translates to a compound annual growth rate (CAGR) of about 12%.

Mobile money platforms are central to this growth. In 2022, they processed USD 837 billion in transactions globally, with Africa responsible for 66% of the volume. These platforms offer significantly lower fees than traditional banks, with rates that range from 1.5% to 3%. But for us to understand the landscape better, we must take a look back in time.

A shift from informal to structured systems

Cross-border payments in Africa began in pre-colonial times through vital yet informal networks that physically moved funds. These early systems were often unreliable, insecure, and slow, which were among the gaps that formal banks eventually addressed. Despite the emergence of formal banks, small-scale and informal traders continued to rely on physical cash. They chose it not because it was safe, but because it was the most direct and accessible option.

Things changed when the introduction of traditional banking systems formalized cross-border payments. Commercial banks enabled secure international transactions through services, such as bank transfers, SWIFT wires, and card payments. These systems supported high-value and corporate trade but remained inaccessible and inefficient. Further, banks continued to be costly, with average fees that exceed 11% per transactionlengthy process times, and limited access for people who need funds. Low financial inclusion further limited access, as only 49% of Sub-Sahara Africans had bank accounts as of 2021. This left vast portions of the population excluded from formal financial systems.

The present: A digital transformation

Today, Africa is witnessing a profound digital transformation in cross-border payments that directly addresses historical inefficiencies. With our multi-decade-old roots deep within the continent, MicroSave Consulting (MSC) continues to uncover a deep understanding of user needs through extensive research and solutions to meet these needs.

With the Mastercard Foundation, our demand analysis in Côte d’Ivoire, Mali, and Senegal revealed how migrant families depend on informal channels as they lack tailored financial services. Based on this research, we recommend human-centered, remittance-linked digital financial services (DFS) to support last-mile use and adoption, especially for low-value, frequent transactions. Our work in India, the Philippines, and West Africa further emphasizes the need for stakeholders to understand migrant behavior and design inclusive payment corridors.

When we move back to Kenya, we see Kenya Commercial Bank (KCB) and Equity Bank have produced KCB Connect and Equity Direct to offer faster and more affordable regional transfers. They reduce dependency on banking and offer competitive forex rates. Outside Kenya, top-tier banks, such as Nigeria’s Zenith Bank and Ecobank, use specialized trade finance solutions and multi-currency accounts to simplify cross-border businesses.

Meanwhile, money transfer operators (MTOs), such as Western Union, offer speed but at high fees. Mobile money platforms, such as M-PESA Global, have revolutionized peer-to-peer (P2P) remittances and guarantee direct mobile-to-mobile transfers. Providers have successfully addressed fragmented networks and interoperability by forging extensive partnerships with other mobile money operators and banks, often leveraging global payment hubs and standardized APIs to connect disparate systems.

Regional payment systems further enhance efficiency and solve long-overdue payment challenges.

In 2022, the African Export-Import Bank (Afreximbank) and the African Union launched the Pan-African Payment and Settlement System (PAPSS). It provides breakthrough infrastructure for instant, secure cross-border transactions in local African currencies, a significant advancement that directly connects African currencies and bypasses traditional reliance on intermediary foreign exchange. The distributed ledger technology (DLT) in PAPSS eliminates the need for intermediary currencies, such as the USD or Euro. It reduces transaction costs by up to 50% and settlement times from days to seconds. DLT also enhances transparency through real-time tracking and anti-fraud protocols.

By early 2025, PAPSS had enabled real-time cross-border payments across 17 countries, connecting 14 national switches and over 150 commercial banks. This growth aligns with the African Continental Free Trade Area (AfCFTA) goals and positions the PAPSS as a vital part of intra-African trade, which is expected to increase from 18% to 50% annually by 2030. Recent innovations, such as the integration of PAPSS into mobile banking apps for small and medium enterprises and diaspora remittance corridors, further democratize access to Africa’s integrated financial future.

Yet, challenges persist

Despite significant gains, Africa’s cross-border digitization has yet to solve key challenges. Providers struggle to align frameworks, which block smooth interoperability, especially in regions without unified KYC rules, anti-money laundering (AML) measures, and consumer protection. Foreign exchange shortages and dependence on offshore clearance raise costs and slow transactions.

Moreover, users in rural areas cannot access last-mile infrastructure due to scarce mobile money agents and cash shortages. Many consumers are unaware of new cross-border solutions or lack the digital skills to use them. Remittance costs in Africa average 7.4%, exceed global targets, and limit affordable options for frequent, low-value transfers. This situation spells a need for expanded access. These gaps underscore a need for regulatory coherence, expanded access, and user-centric design to unlock the potential of Africa’s payment system.

Regulatory reforms as the way ahead

The regulation of domestic infrastructure, the introduction of national switches, and their integration to enable efficient, low-cost, and inclusive systems are essential for cross-border payments in Africa. Countries must connect national switches, such as Tanzania’s TIPS and Rwanda’s RSwitch, to the PAPSS and standardize AML/KYC regulations. This will improve interoperable digital infrastructure and promote local currency settlement.

MSC’s work in cross-border payments in India, the Philippines, and West Africa emphasizes the need to understand migrant user behavior, the risks of informal channels, and design human-centric products. These lessons will prove valuable for inclusive payment corridors under the AfCFTA.

Central banks, governments, FinTechs, and regional bodies must work together to uncover Africa’s payments potential worth USD 1 trillion by 2035. An increased focus on digital literacy and inclusion will reduce costs, boost transparency, and open the doors to Africa’s integrated and prosperous financial future.

Strengthening the backbone of Indonesia’s fisheries: A call to action

Posted on by Melya Findi Astuti

“We used to be proud to be fishers, and life was not hard. My child will definitely not follow in his father’s footsteps; he is better off working on land than at sea.”

These somber words from Pak Suwardi, a small-scale fisher in Lamongan, East Java, ironically one of the country’s top fish producing regions, reflect the struggles facing small-scale fishers across Indonesia. Many small-scale fishers and aquaculture farmers throughout the archipelago are grappling with increasing economic, social, and environmental challenges that threaten their livelihoods, mirroring struggles faced by their counterparts in many parts of the world. As highlighted by the joint research on the Blue Food Assessment (BFA) conducted by MSC and Ministry of National Development Planning/National Development Planning Agency (Bappenas), these pressing issues demand urgent attention, particularly as Indonesia is finalizing the 2025-2029 National Medium-Term Development Plan (RPJMN).

Small-scale fisheries and aquaculture (SSFA) make up 85% of Indonesia’s fisheries sector and are essential to the value chain. They support food security, provide livelihoods for a significant portion of the population, and contribute to the sustainable management of aquatic resources. The Indonesia Blue Economy Roadmap 2023-2045 aims to elevate the contribution of marine and aquatic sectors to 15% of GDP and create jobs for 12% of the workforce by 2045. 

However, small-scale fisheries and aquaculture (SSFA) in Indonesia face several challenges. Access to finance remains a significant barrier for SSFA, limiting their ability to upgrade equipment or invest in sustainable practices. Many prefer informal loans over institutional financing, which deepens their reliance on middlemen, who often act as key financial facilitators. During off-seasons, SSFA are forced to diversify their income, but limited skills and capital often confine them to low-paying jobs, such as basic fish processing or manual labor.

Resource and operational constraints have left SSFA’s potential largely untapped. Despite their significant numbers, small-scale fishers contribute only 20% of national fish catch. They face critical barriers in accessing affordable fuel for their boats and often rely on outdated equipment, limiting their access to more productive fishing grounds. According to our BFA findings, inefficiencies in fishing methods and inadequate storage exacerbate these issues, with up to 10 kg of fish per harvest lost to spoilage, especially on longer trips.

The aquaculture sector faces similar challenges, achieving only 30% of its potential production capacity. Farmers often lack access to affordable, high-quality seeds and feed, which are unreliable due to seasonal and weather fluctuations, price instability, and limited availability. Quality supplies are often prioritized for export. Access to subsidized fertilizers is also limited, as land-based agriculture takes precedence. Additionally, reliance on outdated equipment like fuel-powered aerators significantly raises operational costs. Alternatives such as electric aerators, have been found in our BFA research to reduce costs by as much as 60%.

The predominance of men in SSFA, coupled with an aging workforce and a lack of younger workers, threatens the future of the industry. Many young people from fishing families seek better opportunities elsewhere, leaving small-scale fishing at risk. Although women make up 42% of the workforce in Indonesia’s fisheries sector, their contributions often go unrecognized.

Traditional gender roles limit their involvement in fishing, and they are mainly engaged in pre- and post-harvest tasks. Societal norms and limited recognition as fishers prevent women from accessing resources and support, such as obtaining the KUSUKA card, the national fisher’s identity, limiting their potential to contribute more to the sector.

Climate change exacerbates Indonesia’s fisheries and aquaculture challenges. Sea surface temperatures (SST) have risen at an average rate of 0.19°C per decade over 33 years (Iskandar et al., 2020), outpacing global trends and severely disrupting ecosystems and productivity. Small-Scale Fisheries and Aquaculture (SSFA) are especially at risk due to inadequate access to advanced technology, financial support, and infrastructure.

The Notre Dame Global Adaptation Initiative (ND-GAIN) Country Index 2022 ranks Indonesia globally as the 97th most vulnerable and 99th most ready for climate change, underscoring its critical need for improved resilience and adaptive strategies to safeguard livelihoods and ecosystems.

Given this context, Indonesia must embrace a more robust approach to support SSFA communities. The government has already positioned the blue economy as a future growth engine and a pathway to sustainable fisheries in the 2025-2045 National Long-term Development Plan (RPJPN). This strategy promotes sustainable practices in marine and aquaculture, focusing on high-value products and innovation.

By boosting productivity and empowering communities, Indonesia aims to build a resilient fisheries sector that supports livelihoods and protects ecosystems, promising lasting benefits for the economy and biodiversity. Based on insights from our study with Bappenas, we offer five key policy recommendations to support and sustain Indonesia’s SSFA. These recommendations address pressing needs identified through our research and consultation with SSFA communities and stakeholders.

To lay a strong foundation, first, Indonesia must promote economic empowerment and improve market access for small-scale fishers. Drawing on lessons from the Coastal Community Empowerment Program (PMP-PPK), it is recommended to design comprehensive, integrated livelihoods diversification programs. By partnering with relevant government agencies, Indonesia can provide SSFA communities with additional sources of income, reducing their reliance on unpredictable fishing yields.

Second, strengthen resource access and operational efficiency. Expanding subsidy programs for high-quality inputs, such as fish feed, seeds, and fertilizers, will reduce operational costs for small-scale aquaculture farmers, especially those most vulnerable. Supporting local production and bulk purchasing for fishing cooperatives can further reduce dependency on costly intermediaries, enhancing the economic viability of SSFA. Global examples, such as India’s Pradhan Mantri Matsya Sampada Yojana (PMMSY) under India’s Blue Revolution scheme promotes sustainable aquaculture by providing subsidies and encouraging cooperatives to lower input costs for small-scale fish farmers.

Third, foster social inclusion and build capacity within SSFA communities. Increasing the reach of KUSUKA cards by enhancing public outreach and simplifying the registration process would extend critical social protections to more fishers, ensuring that vulnerable communities can access the support they need. Beyond financial access, this also means providing training and resources that empower women and underrepresented groups within the sector, unlocking the full potential of SSFA to drive local economic growth.

Lastly, ensure the continuity and sustainability of SSFA by developing and implementing a strategic succession plan. This initiative should include capacity building, youth-specific financial services, and leverage digitalization to engage the next generation in the sector. Embracing digital tools—from digital marketing and sales to automation in aquaculture to advance cultivation, and mobile financial services, can make the sector more accessible and appealing to young people, fostering a sustainable pipeline of skilled workers and leaders well into the future.

Addressing the challenges faced by small-scale fisheries and aquaculture is not just about economic growth, it is about safeguarding the food security, livelihoods, and cultural heritage of millions across Indonesia. By investing in these targeted actions, we can secure the future of Indonesia’s fisheries and aquaculture, ensuring that small-scale fishers like Pak Suwardi can envision a better future for themselves and their next generations.

The next chapter in Kenya’s digital payment revolution

Posted on by Saumya Dixit

Kenya’s success story is often told through the lens of M-PESA, the mobile money innovation that emerged in 2007 and fundamentally reshaped the country’s payment landscape. Its rapid growth stemmed from its agility, adaptive infrastructure, and regulatory initiatives. Thanks to M-PESA, between 2024 and 2029, Kenya’s total digital payment transaction value is projected to grow at a compound annual growth rate (CAGR) of around 14.1% to 26.16%, reaching approximately USD 24 billion by 2029.

Despite this progress, persistent challenges, such as high transaction costs, limited digital literacy, network reliability issues, and a continued preference for cash, hinder adoption. This is particularly evident in rural areas, where fragmented agent networks and duplicative service models limit access to affordable and reliable digital financial services (DFS).

The Central Bank of Kenya (CBK) recognized M-PESA’s pivotal role in the economy and introduced key reforms to promote a more inclusive, secure, and efficient digital payments ecosystem—one that could reshape the country’s economic future.

The CBK has positioned itself as both a regulator and a catalyst for transformative growth. Central to this effort is the National Payments Strategy (NPS) 2022-2025, a blueprint designed to propel Kenya into a future where digital payments are secure, fast, and universally accessible.

The promotion of interoperability across payment platforms has been a core pillar of the NPS. The mandated interoperability of mobile money platforms was a significant milestone in this effort. It enabled seamless and instant fund transfers between M-PESA, Airtel Money, and T-kash. Another leap forward was the introduction of merchant till number interoperability, which allowed payments to any business regardless of the mobile network operator (MNO). This simplified payment acceptance for merchants, especially small and medium enterprises (SMEs), and expanded their customer base. Previously, users incurred high costs by withdrawing funds to transact with users on different networks. Now, direct transactions lessen the need for cash-outs and make digital payments more accessible.

The financial industry in Kenya initiated a strategic initiative to design and implement a shared and interoperable agent network to deepen interoperability and expand financial access. MicroSave Consulting (MSC) led the implementation of this initiative in collaboration with Financial Sector Deepening Kenya (FSD-K). The CBK played a pivotal role in anchoring the project within the NPS and shaping regulatory expectations.

The CBK has also introduced and enforced key standards to enhance efficiency and security. The launch of the KE-QR Code Standard in 2023 introduced a single, interoperable QR code that allows users to transact with any merchant, regardless of PSP or MNOs. The CBK has also been developing a comprehensive framework for consumer protection within the National Payments System to protect consumers. This will establish minimum standards for PSPs, promote fair practices, improve transparency, and enable effective complaint resolution.

Kenya’s adoption of the ISO 20022 Global Messaging Standard also highlights its commitment to international best practices. This standard enhances data exchange during transactions, boosts efficiency, and facilitates more seamless cross-border payments. The CBK has been guiding this transition through policy issuance, stakeholder coordination, and upgrades to systems, such as the real-time gross settlement (RTGS) platform. These efforts enhance fraud detection, strengthen oversight, and reinforce Kenya’s position as a regional financial hub.

Further efforts involve plans to integrate PesaLink with mobile money platforms, such as M-PESA, which will connect traditional banking with mobile money. This push for interoperability will significantly speed up digital payment adoption throughout Kenya.

Alongside these reforms, the CBK is also at the forefront of using supervisory technology (SupTech) to strengthen its regulatory oversight and facilitate innovation. It can now monitor PSPs and banks in real time through digital dashboards, AI-driven anomaly detection, and data analytics platforms. This has drastically improved responsiveness to systemic risks. For example, its risk-based supervision model, underpinned by SupTech tools, allows for dynamic compliance assessments and more efficient fraud detection across mobile money operators.

Lastly, the CBK has been piloting regulatory sandboxes in collaboration with FinTechs. It uses SupTech to monitor innovation and safeguard consumer interests. These systems enhance agility in policymaking, which allows regulators to adapt faster to emerging technologies and payment models. The CBK seeks to proactively detect market abuse and enforce consumer protection in a data-driven, scalable manner through the integration of SupTech into its oversight mechanisms. This bolsters public confidence and ensures inclusivity, especially for vulnerable segments that seek to enter the digital economy for the first time.

As the CBK strengthens regulatory visibility through SupTech, it is simultaneously investing in the core infrastructure that will anchor a seamless and interoperable digital economy. It is in the process of advancing Kenya’s payment infrastructure with the Fast Payment System (FPS), set to launch in 2025. This system will support real-time, 24/7 transactions among individuals, businesses, and the government. Kenya is also integrated with the Pan-African Payment and Settlement System (PAPSS). It has become the 10th African central bank on the platform. This integration seeks to facilitate cross-border payments in local currency, reduce reliance on foreign intermediaries, and support the African Continental Free Trade Area (AfCFTA).

Together, FPS and PAPSS exemplify the CBK’s strategy to create an inclusive, interoperable, and globally competitive payments landscape, guided by global standards, such as ISO 20022, and inspired by models, such as India’s UPI and Brazil’s PIX.

Yet despite significant progress, several barriers continue to inhibit the full realization of an inclusive digital payments ecosystem. These challenges can slow down adoption and deepen existing access inequalities, especially in rural and underserved regions. Key gaps include:

  • Fragmented agent networks: Overlapping and siloed agent models create inefficiencies, particularly in rural areas, where agents often serve a limited number of providers. This leads to poor service coverage and reliability.
  • High transaction costs: For low-income users, the cost of using digital payment services remains prohibitive, especially when switching across platforms or accessing cash-out services.
  • Inconsistent consumer protection: Resolution mechanisms are often inadequate or poorly enforced across providers, which undermines trust and discourages usage, particularly among vulnerable users.
  • Lack of a unified payment switch: The absence of a designated National Payments Switch hampers full interoperability across mobile money platforms, banks, and FinTechs, which leads to fragmented user experiences and operational redundancies.

So, what should the CBK do? We recommend the CBK to prioritize the following strategic actions to sustain progress and address persistent gaps:

  • Accelerate shared agent network rollout: The CBK should expand the shared agent network to reduce duplication and improve access in rural areas. A unified model will enable agents to serve multiple providers efficiently and lower transaction costs.
  • Designate a National Payments Switch: The CBK should designate an existing payments switch as the National Payments Switch. It should be mandated to facilitate all domestic digital payments, similar to India’s UPI model. Clear targets to reduce cross-border costs would also benefit trade and remittances.
  • Enforce consumer protection and promote digital literacy: The CBK should finalize the National Payments Consumer Protection Framework and launch targeted digital literacy programs to build trust and ensure safe usage.
  • Introduce a secure open finance framework: The CBK should develop a consent-based open finance policy, such as the UK’s OBIE, to enable data sharing, encourage innovation, and enhance user control.

If sustained and expanded, Kenya’s regulatory and infrastructure efforts could redefine financial access for millions and offer a roadmap for digital economies across the continent. With the right policy frameworks and collaborative innovation, a truly inclusive and resilient digital payments future is within reach, both for Kenya and for Africa at large.