Africa’s cross-border payments sector is undergoing a rapid transformation—one poised to redefine the continent’s financial infrastructure. According to a new report by Oui Capital, the market is projected to grow from $329 billion in 2025 to over $1 trillion by 2035, driven by a 12% compound annual growth rate (CAGR). At the core of this explosive growth are digital payment platforms, blockchain-based solutions, and mobile money ecosystems that are swiftly displacing legacy systems.
Historically, Africa has struggled with the highest remittance fees in the world, averaging 7.4% to 8.3%, compared to the global average of 6.2%, according to the World Bank. This inefficiency has pushed as much as 75% of Sub-Saharan Africa’s remittance flows in 2022 into informal channels, leading to losses in transparency, security, and economic inclusiveness. In contrast, emerging fintechs offer fees as low as 0–3.5% and instant settlements—solving long-standing issues around cost and speed.
The shift to digital rails is further supported by demographic and structural forces:
• Migration: Intra-African migration accounts for 70% of all African migration, sustaining cross-border trade and remittance flows.
• Urbanisation & digital penetration: Africa’s urban population is expected to surpass 700 million by 2030, fueling demand for instant, mobile-first financial solutions.
• Mobile money growth: With 781 million registered accounts and $837 billion processed in 2022, mobile money now handles over 30% of Sub-Saharan Africa’s remittance volume.
Key players like M-Pesa, MTN MoMo, Airtel Money, and fintech startups such as Chipper Cash, Afriex, Bitnob, and Lemonade Finance are at the forefront of this digital revolution. These platforms reduce costs and enhance access, especially for underserved populations.
Crypto and blockchain are also accelerating transformation. Stellar-powered solutions and stablecoins provide low-fee rails that bypass expensive correspondent banking systems, enabling zero to 1% transaction costs and settlement in minutes—compared to days via SWIFT and traditional banks.
Still, the report warns that legacy providers must adapt or face obsolescence. Africa’s current infrastructure—dominated by SWIFT and high-fee intermediaries—is poorly suited for the continent’s high-frequency, low-value transactions.
As Africa races toward a $1 trillion digital cross-border future, fintechs and mobile-first platforms will be instrumental in reshaping economic inclusion, remittance affordability, and pan-African trade.
