Africa’s cross-border payment market is set to triple in size over the next decade, reaching $1 trillion by 2035, up from $329 billion projected in 2025, according to a new report by Oui Capital.
The Africa-focused venture capital firm disclosed that the surge is being driven by rapid advancements in mobile money, digital wallets, fintech innovation, and a steady rise in migration and intra-African trade.
The report, which provides an in-depth analysis of Africa’s payment landscape, highlights a projected compound annual growth rate (CAGR) of 12 percent for cross-border transactions.
“Despite the bullish outlook, persistent structural bottlenecks, including high transaction costs, regulatory fragmentation, and reliance on outdated financial infrastructure.
“Cross-border payments are a lifeline for millions of Africans and a critical engine for informal trade and household income,” the report states, pointing out that remittance inflows alone hit nearly $100 billion in 2023, equivalent to 5.2 percent of the continent’s GDP.
Yet, 75 percent of remittance flows in Sub-Saharan Africa still occur through informal channels, largely due to the prohibitively high costs of formal transfers, which average between 7.4 percent and 8.3 percent per transaction.
The report further disclosed that fintech platforms and mobile money services are rapidly transforming Africa’s financial terrain.
“Over 781 million mobile money accounts were registered across the continent in 2022, processing an estimated $837 billion in transactions, two-thirds of the global mobile money volume,” it said.
The market, which is widely dominated by players like M-Pesa, MTN MoMo, and Airtel Money, Africa’s mobile money ecosystem is growing at 48 percent annually.
These platforms now handle 30 percent of Sub-Saharan Africa’s remittance volume at significantly lower fees, between 1.5 percent and 3 percent compared to banks.”
Digital wallets and neobanks are also gaining traction, offering average fees of 3.5 percent, while crypto-based solutions like Afriex, Bitnob, and Stellar-powered networks are emerging as the most cost-effective channels, often boasting near-instant transfers with transaction costs between 0 percent and 1 percent.
Despite this progress, many African cross-border payments still rely on legacy systems like SWIFT and correspondent banks, which are not optimised for the continent’s unique needs. The result: high fees, sometimes up to 10 percent, and settlement delays that can take days.
“Most African banks lack direct international clearing capabilities, forcing them to route through costly and inefficient SWIFT-based networks,” the report explains. This structure disproportionately affects small traders and migrant workers, who make up a large share of remittance users.
In contrast, fintech disruptors such as Chipper Cash and Afriex are offering real-time settlements and zero-to-low transaction fees, providing vital alternatives to traditional banking rails.
