• Africa’s cross-border payments market is expected to grow from $329 billion in 2025 to $1 trillion in 2035

• Growth is driven by digital payment channels, mobile money, and fintech-led cost reductions

• Regulatory gaps, high fees, and fragmented systems still weigh heavily on the market

Africa’s cross-border payments market is on track to more than triple over the next ten years, from about $329 billion in 2025 to $1 trillion in 2035. This forecast comes from a report published on May 27 by Oui Capital, a venture capital firm focused on the African market. The report estimates a compound annual growth rate of 12% for the period.

Several forces are pushing this expansion. More and more people are turning to digital payment options that are faster and less expensive than traditional bank transfers. Growing regional migration across the continent is also increasing the demand for simple and affordable ways to send money across borders.

Mobile money is already shaping the payment landscape in a big way. It accounted for 30% of Africa’s cross-border money transfers in 2024. Fees for mobile money services typically range from 1.5% to 3%, well below the 7% or more charged by banks. This sector has seen average annual growth of 48% in recent years and is expected to keep gaining ground.

Fintech startups are also playing a major role in cutting transaction costs. For small businesses and freelancers, these companies offer services that reduce fees by up to 90%. Blockchain-based solutions are going a step further, bringing transaction costs close to zero.

Structural changes are also underway. The Pan-African Payment and Settlement System, or PAPSS, will allow instant cross-border payments in local currencies. Meanwhile, the African Continental Free Trade Area aims to harmonize financial systems across the region, which would reduce the need for international intermediaries like SWIFT and help lower costs further.

Despite progress, old habits remain. Many Africans still rely on informal methods and bank transfers to move money between countries. This is often due to a lack of trust, unclear rules, or limited access to modern infrastructure. The report points out that inefficiencies in the current system cost businesses and consumers billions of dollars every year.

Africa continues to record the highest remittance costs in the world, with averages between 7.4% and 8.3%. Regulatory fragmentation and limited digital interoperability are to blame. Only 55% of African countries currently permit electronic Know Your Customer procedures, which forces users to repeat compliance steps in different countries. On top of that, erratic foreign exchange policies in places like Nigeria make transactions more expensive and uncertain.

Currency exchange markets in Africa also face liquidity problems. This often means using offshore clearing in US dollars or euros, which leads to about $5 billion in added costs each year because of double currency conversions.

To help the market reach its full potential, Oui Capital suggests improving the way mobile money networks connect with each other, increasing investments in payment infrastructure, cutting business-to-business transaction costs, and encouraging partnerships between fintech firms and mobile money providers.

The report also calls on regulators to streamline cross-border licensing, create a unified electronic KYC framework, support blockchain settlement systems backed by stablecoins, speed up the rollout of PAPSS, and take steps to reduce dependence on the US dollar in trade within Africa.