Market Shake-Up: Camtel’s “Blue Mobile Money” Enters the Fray

By Banyong Fonyam Jonie Jr, Managing Partner, Fonyam and Partners Law Firm

The Cameroonian payment ecosystem is on the cusp of a significant transformation. The recent confirmation that the national telecom operator, Camtel, has formally incorporated its mobile money subsidiary, “Blue Mobile Money,” with a capital of 500 million FCFA and appointed a Chairman of the Board, Mr. Jean Marie Aimé Ottou, signals a long-awaited challenge to the established duopoly. As an attorney in the fintech space, this move presents a fascinating case study on market competition, regulatory strategy, and consumer choice.

The Incumbent Titans: A Dominant Duopoly

To understand the magnitude of this entry, one must first appreciate the current market structure. For over a decade, the mobile financial services landscape in Cameroon has been dominated by two giants:

1. MTN Mobile Money (MoMo): The market leader, leveraging its extensive subscriber base to offer a wide array of services from peer-to-peer transfers to bill payments and merchant payments.

2. Orange Money: A formidable competitor, similarly providing a comprehensive suite of financial services and deeply integrated into the daily economic lives of Cameroonians.

According to the latest available data from the Bank of Central African States (BEAC), this duopoly services an estimated 21.6 million accounts (as of 2022) and controls approximately 95% of the market share. The sector’s growth has been explosive, with transaction volumes soaring from 887 billion CFA francs in 2016 to over 12,151 billion CFA francs in 2020. This dominance, while a testament to their successful market penetration, has also led to a lack of competitive pricing and innovation in certain areas.

The New Challenger: Camtel’s “Blue Mobile Money”

Camtel’s foray into this space is not entirely unexpected; it has been in the works since 2023. However, the legal formalization in September 2025 marks a critical point of no return.

Strategic Advantages

· The Infrastructure Backbone: Camtel’s most significant strategic advantage is its state-backed monopoly on the national fibre optic network. As the primary supplier of bandwidth to its future competitors (Orange and MTN), Camtel operates with a fundamental infrastructural leverage. This could translate into lower operational costs and potentially more resilient network services for its mobile money platform.

· Regulatory Alignment: The company’s purpose, as outlined in its constitutive acts, is clearly defined under the regulations of the Central African Banking Commission (COBAC). This demonstrates a clear intent to operate within the stringent legal framework governing electronic money issuers in the CEMAC region, a non-negotiable for any serious player.

· Government Proximity: The appointment of Mr. Jean Marie Aimé Ottou, a senior official from the Ministry of Public Procurement, as Chairman, signals a deep understanding of public sector processes. This could be advantageous for facilitating partnerships for government-to-person (G2P) payments, such as salary disbursements and social benefits.

Strategic Challenges

· The 3% Conundrum: Camtel’s glaring weakness is its minuscule share (approximately 3%) of the mobile telephone subscriber market. A mobile money service traditionally relies on a large existing customer base for rapid adoption. Blue Mobile Money will need to devise a compelling strategy to attract users from outside its current subscriber pool.

· Breaking Consumer Habits: Changing deeply ingrained user behavior is a monumental task. Millions of Cameroonians are accustomed to the MoMo and Orange Money interfaces, agent networks, and service flows. Overcoming this inertia requires more than just a similar service; it requires a superior value proposition.

Legal and Market Impact: A Forecast

From a legal and market perspective, the entry of Blue Mobile Money will have several key impacts:

1. Enhanced Regulatory Scrutiny: The Central African Banking Commission (COBAC) and the Ministry of Finance will now oversee a tripartite market. This will necessitate even more rigorous supervision to ensure a level playing field, protect consumer data, and maintain systemic stability. We can anticipate more frequent audits and stricter enforcement of interoperability and consumer protection standards.

2. Intensified Competition and Innovation: This is the most immediate and positive outcome for Cameroonian consumers and businesses. To capture market share, Blue Mobile Money will be forced to innovate. We can expect:

   · Lower Transaction Fees: Competitive pricing will be the first battleground.

   · New Product Offerings: Differentiated services such as tailored microloans, integrated insurance products, or specialized services for SMEs.

   · Enhanced User Experience: Investment in more intuitive apps and USSD platforms.

3. Accelerated Financial Inclusion: A third operator will inevitably expand the agent network, particularly in semi-urban and rural areas where the existing networks are still thin. This increased physical access point, combined with competitive offerings, will bring formal financial services to previously underserved populations.

4. Pressure on Interoperability: While a form of interoperability exists, the entry of a third player will put immense pressure on all operators to create a seamless, low-cost, and real-time inter-network transfer system. This is a complex legal and technical challenge that regulators will be compelled to prioritize.

The launch of Camtel’s Blue Mobile Money is a watershed moment for Cameroon’s digital economy. While the path to challenging the entrenched duopoly is fraught with challenges, Camtel’s unique infrastructural position and the formal legal steps taken thus far indicate a serious contender.

For the average Cameroonian, this promises a future with more choice, lower costs, and better services. For the market, it heralds a new era of dynamic competition. For us in the legal field, it presents a new frontier of complex regulatory compliance, corporate structuring, and intellectual property considerations. The “blue app” has entered the chat; now, we watch to see if it can change the conversation.

By Banyong Fonyam Jonie Jr