Africa’s cross-border payments market is on the cusp of a seismic transformation projected to triple from $329B in 2025 to $1T by 2035, according to a report by Oui Capital. Yet, the journey is anything but straightforward.
Key Takeaways:
- Digital Surge: 781M+ mobile money accounts power 66% of global mobile money transactions. Fintechs are slashing remittance fees from 8–12% (banks) to as low as 3.5%—or even 1.5% in some corridors.
- Persistent Pain Points: Fragmented regulations, high FX costs, and limited digital interoperability keep average remittance fees at 7.4–8.3%, with informal flows still accounting for up to 75% of the market. That’s billions lost in inefficiencies each year.
Innovation Hotspots: Fintech disruptors, leveraging APIs, blockchain, and mobile wallets, are driving down costs and settlement times. Connecting mobile money networks could save $5B annually, while stablecoins and decentralized FX markets promise even greater efficiencies.
Download the full landscape here:
Action Points!
- For Founders: Build for interoperability and SME trade. Embedded finance is the next growth lever.
- For investors, infrastructure plays (Pan-African Payment & Settlement System - PAPSS, FX liquidity, API layers) are the $10B+ opportunities. Focus on high-frequency, low-cost corridors.
- For Policymakers: Harmonize regulations and support blockchain pilots. Accelerate PAPSS adoption to reduce USD dependency and unlock intra-African trade.
“Winners will scale through volume, not margins. The future belongs to those who can connect fragmented systems and deliver seamless, affordable payments across Africa.”
Are you ready to shape Africa’s financial future? Let’s drive the next wave of cross-border innovation together!
