Africa’s Cross-Border Payments to Hit $1 Trillion by 2035

Africa’s Cross-Border Payments Market to Hit $1 Trillion by 2035

Africa’s cross-border payments sector is on a steep upward trajectory, projected to grow from $329 billion in 2025 to $1 trillion by 2035, according to a new report by Oui Capital, an Africa-focused venture capital firm. This growth, driven by a 12% compound annual growth rate (CAGR), signals a rapid shift toward digital, low-cost, and faster payment channels across the continent.

From Legacy Systems to Digital Rails

Despite persistent losses from high remittance fees, currency inefficiencies, and regulatory fragmentation, Africa’s payments ecosystem is being reshaped. Fintech innovations—ranging from mobile money and API-powered fintech solutions to blockchain rails—are replacing outdated banking models.

“Mobile money, fintech solutions, and regulatory reforms are driving this shift, making digital channels more competitive,” the report states.

These technologies are formalising previously informal transfers by making it easier and cheaper to send and receive money across borders. This shift is especially relevant in light of migration patterns, where remittances play a central role in sustaining families and informal businesses.

Key Stats:

• Remittance inflows reached $100 billion in 2023, comprising 5.2% of Africa’s GDP
• Up to 75% of Sub-Saharan Africa’s remittance flows in 2022 were informal
• The average bank fee for cross-border transfers: 7.4–8.3%
• Mobile money platforms charge as low as 1.5–3%
• 781 million mobile money accounts were active in 2022
• Mobile money in Africa processed $837 billion in 2022, representing two-thirds of global mobile transactions

Fintechs and Blockchain Are Redefining Money Movement

As consumer demand for faster, cheaper, and borderless transactions increases, Africa’s digital infrastructure is catching up. Platforms like M-Pesa, MTN MoMo, and Airtel Money are leading the charge, processing 30% of Sub-Saharan Africa’s remittance volume annually. They are also expanding into retail, utilities, and peer-to-peer payments.

Neobanks and digital wallets are also gaining traction. Their average fees now stand at 3.5%, compared to 8–12% for traditional institutions.

Meanwhile, crypto-based platforms like Afriex, Bitnob, and Stellar are offering near-instant, ultra-low-cost remittances, often charging between 0–1%. These platforms are particularly attractive to tech-savvy youth and cross-border freelancers.

“Fintech platforms like Chipper Cash and Afriex often settle payments within minutes—far outpacing traditional systems that take days,” the report adds.

Outdated Rails, Outpaced by Innovation

Traditional payment rails still depend on SWIFT networks and correspondent banks, which are ill-suited for the low-value, high-frequency transactions that dominate African trade and remittance flows. These systems can take days to settle and charge fees of up to 10% per transaction.

Because most African banks lack direct international clearing abilities, they must route funds through multiple intermediaries, driving up costs and processing time.

The Road Ahead: Interoperability, Stablecoins, and Regulatory Reform

Oui Capital predicts further transformation in Africa’s cross-border payments sector, anchored by:

• Falling transaction costs
• Wider adoption of stablecoins
• Improved interoperability between fintechs and banks
• Supportive regulatory environments

However, the report warns that legacy providers must evolve or risk being left behind in an ecosystem increasingly dominated by real-time, tech-driven solutions.

“Africa’s payment landscape is no longer waiting for permission to change—it’s being rebuilt by demand, innovation, and necessity.”