• Africa’s payment market sees a new partnership between Onafriq and Circle.

• The deal builds on a trend of stablecoin solutions to reduce FX bottlenecks and enhance payment efficiency.

• Key challenges include regulatory issues, infrastructure gaps, and trust in digital currencies.

Onafriq, a major payment network operating across 40 African countries, announced a partnership yesterday with USDC stablecoin issuer Circle. The deal expands a trend already visible in platforms like Yellow Card, Chipper Cash, and Afriex; all of which use stablecoins to reduce friction in cross-border payments and FX constraints.

Circle will provide its expertise to integrate blockchain infrastructure into Onafriq’s operations for faster and more cost-efficient money transfers across Africa. The move positions Onafriq to build real-world applications for USDC - digital currencies pegged to US dollar- aligning with its goal to make money transfer "as simple as a phone call (...) open up markets and connect people to a world of opportunities".

“Our partnership with Circle is an important milestone (…) By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs, and strengthen trust,” said Dare Okoudjou (pictured), Onafriq’s founder and CEO.

The use of stablecoin-backed apps reflects a broader shift among African financial actors — from fintechs and banks to remittance platforms — seeking alternatives to legacy rails and FX bottlenecks. It also echoes broader efforts across the continent to modernize cross-border payments and reduce dependency on foreign intermediaries. One example is the Pan-African Payment and Settlement System (PAPSS), launched by Afreximbank and the African Union to facilitate transactions in local currencies.

It is officially estimated that over 80% of intra-African transactions are processed via correspondent banks outside the continent, which incur $5 billion in average fees each year. The issue was discussed last April 25 in Lagos as part of the two-day 2025 Africa and Middle East Depositories Association Conference (AMEDA 2025) during a dedicated panel themed “the Future of Cross-Border Payments and Settlements”. Experts believe that adopting technologies like stablecoins is essential to creating seamless and efficient international transactions across the regions.

However, despite the optimism surrounding the expansion of USDC-backed solutions for African cross-border payments, several barriers could impede their success. These include regulatory challenges, as many African countries have evolving or unclear laws surrounding cryptocurrencies and stablecoins.  Infrastructure gaps, such as unreliable internet and electricity, could hinder access to blockchain-based payment solutions. Widespread adoption may also be slowed by a lack of awareness and trust in stablecoins, while the integration with existing payment systems could face interoperability challenges. Another thing, external factors like currency volatility and fluctuations in the US dollar could undermine confidence in USDC, potentially affecting its use for cross-border transactions.

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