Binance, a leading global cryptocurrency exchange, has expanded its services in Africa by introducing a new feature that allows users in Ghana, Uganda, Zambia, and Tanzania to trade cryptocurrencies using mobile money.
This new capability is part of Binance’s One Click Buy and Sell (OCBS) feature, developed in collaboration with Transfi, a Web3 payment company. The feature is designed to simplify the process of purchasing and selling crypto assets directly from users’ mobile money accounts. Binance has emphasized that the platform maintains strict Know Your Customer (KYC) protocols and robust security measures to protect users’ assets and personal information, ensuring compliance with regulatory standards.
“By enabling mobile money deposits and withdrawals with these safeguards, Binance aims to make cryptocurrency more accessible to the unbanked and underbanked populations in Africa. This initiative aligns with our mission to increase the freedom of money globally and empower users with easy access to digital assets,” the platform stated.
In July 2024, Binance expanded its services to include the trading of cryptocurrencies using local currencies such as the Ghanaian Cedi (GHS), Ugandan Shilling (UGX), Zambian Kwacha (ZMW), and Tanzanian Shilling (TZS) on both its app and website.
This move reflects Binance’s strategy to leverage the growing popularity of mobile money in these countries. As of January 2024, 59.7% of Ghanaians aged 15 and older had a mobile money account, with the market expected to reach $789.5 billion by 2032. Similarly, 44.6% of Tanzanians in the same age group had mobile money accounts. In Zambia, mobile money accounted for 56% of all retail payments in 2023, significantly benefiting the informal economy by reducing the cost of financial services. Uganda also saw significant growth, with over 34 million registered mobile money users as of May 2022.
Despite the challenges faced by the cryptocurrency sector, including regulatory hurdles in certain African countries like Nigeria, Binance has continued to expand its presence across the continent. The platform reported a 28.61% increase in crypto-to-crypto trading volumes from January to April 2021 and an estimated $117.1 billion in on-chain value received between July 2022 and June 2023.
As of 2021, 45% of Africa’s adult population remained unbanked, highlighting the significance of Binance’s efforts to make digital assets more accessible. Statista predicts that the African cryptocurrency market will reach $3.1 billion in 2024, with the number of users expected to grow to 53.89 million by 2025.