Stablecoins Move From Hype to Africa’s Payment Rails

Africa’s cross-border payment system remains fragmented, forcing businesses and remittance providers to navigate multiple correspondent banks, currency conversions and pre-funded accounts. That raises costs, delays settlement and traps working capital. Rajat Mishra, chief product officer at pan-African payments network Onafriq, says stablecoins are gaining relevance as back-end settlement rails. Their promise is not to displace banks or mobile money platforms, but to connect them more efficiently and deliver faster, more predictable payments.

An analysis published Aug. 26 and updated Sept. 2 said remittance inflows equal at least 4% of GDP in 19 of Africa’s 54 countries, even as Africa remains the world’s most expensive region for sending money. It cited Mastercard’s reported agreement to buy stablecoin infrastructure provider BVNK for as much as $1.8 billion and Visa’s expansion of stablecoin-backed cards through Stripe’s Bridge to more than 100 countries, signaling a shift toward regulated, interoperable settlement infrastructure.