Africa’s Cross-Border Payments Market Set to Reach $1 Trillion by 2035 Amid Fintech Boom

Africa’s cross-border payments market is poised for significant growth, with projections estimating it will nearly triple to $1 trillion by 2035, up from $329 billion in 2025. This surge is driven by expanding fintech innovation, widespread adoption of mobile money services, and increased intra-African trade, according to a new report by venture capital firm Oui Capital.

The continent leads globally in mobile money usage, boasting 781 million registered accounts in 2022, a 17 percent rise from the previous year, and handling $837 billion in transactions. These platforms now process 66 percent of the world’s mobile money volumes, underscoring their vital role in facilitating faster and cheaper cross-border transactions.

Fintech solutions have drastically lowered remittance costs and sped up transaction times, with fees averaging 3.5 percent—less than half of traditional banks’ charges. However, Africa still faces the world’s highest remittance costs overall, ranging between 7.4 and 8.3 percent, due to inefficiencies and regulatory hurdles. Only 55 percent of African countries allow electronic Know-Your-Customer (e-KYC) processes, creating compliance challenges for financial institutions operating across borders.

Foreign exchange instability also hampers growth, with an estimated $5 billion lost annually from poor liquidity, double currency conversions, and reliance on offshore dollar and euro clearing systems. Inconsistent forex policies, particularly in countries like Nigeria, exacerbate these issues, limiting smooth and cost-effective cross-border payments.

Despite these challenges, the report highlights promising solutions including enhanced interoperability between mobile money platforms, improved digital infrastructure like API systems, and the adoption of stablecoins and cryptocurrencies to cut costs by up to 60 percent. Developing decentralized African FX exchanges could also stabilize currency exchange and boost regional trade. The report concludes that Africa’s digital payments revolution holds enormous potential but requires coordinated reforms and sustained investments to fully unlock the $1 trillion opportunity.

Source: The sun