Can A Digital Wallet Be A Catalyst For Economic Change In One Of The World's Poorest Countries?

In a country with a skeleton electricity grid, minimal internet coverage, and a payment infrastructure that is yet to enter the digital age, Al.Tech has launched a digital wallet with palm-face identity identification.

MainMoney, available in the Democratic Republic of Congo since October 7, allows users to make payments online and in-shop with a simple wave. 

African nations are known to "leapfrog" technology. Without ever going through the mass adoption of desktop computers or Wi-Fi networks, the continent witnessed a mobile phone revolution that has put phones with mobile data in the hands of most of the population. The same holds for digital banking services, which are a part of everyday life despite most people not having a bank account. 

As such, to go from a cash-based economy to one where digital wallets are the norm isn't hard to imagine. But what is the potential of MainMoney to be the technology Congolese people leapfrog to? And what is the impact that it can have on the development of DRC's economy?

Observers talked with Mr. Sylvain Mubenga, the founder and CEO of Al.Tech, to help us answer these questions. 

The Non-Existent Congolese Identity System

The World Health Organization estimates that Congo has around 105 million citizens, an estimate that can not be confirmed because the DRC doesn't have a national identity system, not even for driving licenses.

Without a civil registry that can prove who is who, essential matters of life become extremely complicated. 

When it comes to payments, not having the ultimate document to prove one's identity means that creating a bank account is a huge hassle, and depositing checks or transferring money via online financial apps is a gamble.

The founder and CEO of Al.Tech Mr. Sylvain Mubenga spoke to Observers about the project's goals. "By implementing a strong identification and verification system through MainMoney, we aim to build trust within the financial sector."

In the absence of a centralized identity registry to connect each wallet to a user, Al.Tech has used palm-based biometric identification technology developed by Californian-based firm Keyo to verify users' identities on MainMoney.

On its website, Keyo states that palm-hand technology is the most secure way to verify someone's identity. Contrary to other biometrics such as eyes or faces, palm veins are "internal patterns of a person's veins," and therefore "invisible to the naked eye and impossible to replicate."

Because the system scans the veins inside the palm of the hands, it automatically captures actual blood flows, which act as "built-in liveness tests" that can stop even the most robust identity thefts, such as 3D hand-prints.

The Need For Proof Of Identity

"A deeply personal motivation for our mission stems from the need for security in a country where threats such as kidnapping are all too real," Mr Mubenga told Observers. 

The founding of MainMoney is rooted in a deeply traumatic experience for the family of Mr Mubenga, in which the entrepreneur's sister was kidnapped. The event was a "stark reminder of the urgent need for a secure environment in which families can thrive." 

Since Congo became a member of the East African Community in 2022, several telecom and banking companies in neighbouring countries have expanded their operations into the territory, launching services such as mobile money services M-pesa and OrangeMoney, which are used all across the continent. 

These apps have contributed immensely to the growth of the number of people with online financial services in the country, which the national telecom government agency points to as 229% in the three years between 2020 and 2023. 

However, because of the lack of a national ID registry, these apps have also contributed to a rise in crimes such as kidnapping and extortion. 

"A secure financial platform can help protect citizens by reducing opportunities for extortion and fostering a safer community," believes Mr. Mubenga. 

A payment system where people's identities can be disclosed if needed can "facilitate safer transactions but also deter criminal activities, including extortion and kidnapping, by making it harder for perpetrators to operate undetected."

How Can MainMoney Positive Influence DRC's Economy?

Cash, accounting for 90 to 95% of all payments in the Democratic Republic of Congo, is king.

Cash dependency creates problems for every economic group in DRC's society: the government has a hard time collecting taxes, businesses face liquidity issues and instability in exchange rates, and citizens have to deal with the insecurity of having all their income in fiat. 

Mr. Mubenga believes that upgrading the cash-based payment infrastructure can be a catalyst for economic change."By promoting electronic payments and providing access to financial services, we can empower individuals and small businesses, leading to job creation and economic development." 

However, change in DRC doesn't come easily. Numerous challenges need to be addressed, and a minimal pro-digital infrastructure must exist if such a technology is to prosper. 

According to data from the World Bank, only 19% of the country's population has access to electricity, mobile penetration at the start of 2024 is around 27%, and less than half of the population is an internet user.

Elon Musk's low-orbit satellite internet constellation Starlink was once available for Congolese users, but the country's telecom agency banned it last March, and it has yet to return.

Mr. Mubenga describes Congo as "a nation rich in potential but facing numerous economic and security challenges."

MainMoney's Odds

The MainMoney wallet is connected to a user's bank account and, once it is paired with biometric data, allows them to make digital payments on their phones and at MainMoney terminals without their phones—a simple wave is enough. However, with only 26% of citizens in DRC having a bank account, mass adoption seems hard to reach. 

Due to the limitations, Al.Tech first is focusing on where some infrastructure already exists. 

"Our strategy focuses on targeting major cities where internet infrastructure is already present, allowing us to establish a strong user base while simultaneously working to expand our services to rural and underserved communities as connectivity improves."

Fees also contribute to the company's success. Currently, MainMoney charges a nominal transaction fee of 0.5% to end users and a 3% fee per transaction for merchants. 

"We recognize that this fee can be a barrier to adoption for businesses, and we are actively advocating for changes to reduce these charges."

Since launching three weeks ago, MainMoney has reportedly attracted almost 2,000 users, with plans to onboard 50,000 in the first operational year. 

Change in one of the world's poorest countries is difficult but attainable. Much like other technologies that have leapfrogged in Africa, a palm-based biometric identity system can be implemented in a country that doesn't have a national ID registry, and so it follows that people can move from a cash payment system to a wave payment system.

However, while MainMoney can be a catalyst for economic change in the DRC, its success is very much contingent on decisions made by the Congolese people and their leaders.