
Cross-border payments in Africa have undergone significant changes in recent years.
Advances in technology, increased trade across Africa's borders, and growing demand for financial inclusion have made cross-border payments a key pillar of Africa's economic development.
Payment flows in Africa are expected to reach $40 billion by 2025, with more than 70% of them expected to be digital payments. These numbers highlight the huge potential for growth and innovation in this sector.
Tekedia Mini MBA 16th edition (February 10 to May 3, 2025)) will open Registration; Register now For early bird discount.
Tekedia AI in Business Masterclass now open for registration here.
Join Tekedia Capital Syndicate and I tooInvest in Africa's best startups here.
The 'Japa' trend, which represents a wave of Africans, particularly Nigerians, migrating abroad, has emerged as one of the key drivers of cross-border payments in Africa. According to the Emerging Trends in Cross-Border Payments report, the rapid increase in African migration is driving demand for efficient and reliable cross-border payment services.
Fintech companies are stepping up to meet this demand, offering innovative solutions that ensure faster, more affordable and secure cross-border transactions. As the “Japa” phenomenon continues to impact migration patterns, the role of cross-border payment systems in promoting financial connectivity and inclusion becomes even more important.
Another key trend shaping Africa's cross-border payments ecosystem is the rise of mobile money platforms such as M-Pesa, MTN Mobile Money (MoMo), and Orange Money, which support unbanked It plays an important role in helping people send money. You can receive payments across borders.

How will blockchain impact cross-border payments? in africa?
Although the adoption of blockchain technology in Africa is still in its infancy when it comes to cross-border payments, the potential impact on cross-border payments is enormous.
Several local companies are experimenting with it, including Zone, a Nigerian blockchain-enabled payments infrastructure company. Blockchain is used to facilitate transactions, but its overall impact on cross-border payments is: minimum.

The reason is obvious. Adoption and adoption are low due to regulatory uncertainty, negative perceptions, and lack of widespread support for blockchain-driven solutions.
In particular, blockchain is making cross-border payments in Africa faster, cheaper and more secure. Previously, payments had to go through multiple banks and intermediaries, resulting in delays and additional fees. But with blockchain, transactions occur directly The ability to communicate between two parties in real time eliminates the need for these intermediaries. this is A great deal for African businesses and individuals who rely on fast and affordable service payment. Additionally, blockchain stores all transactions in a secure, tamper-proof ledger. This makes fraud more difficult.
The role of mobile money in facilitating cross-border transactions
There is no doubt that mobile money has increased access to financial services (for people without traditional banking) by allowing them to send and receive money directly through their mobile phones. This brought millions of people into the financial system. However, the impact varies by region. Because regulations differ depending on the country.
For example, Kenya's M-PESA allows telcos to store customer funds. They are essential to the financial ecosystem. However, this comes with risks. If you have a platform like If Safaricom's M-PESA faces disruption, it could be a huge blow to Kenya's economy. in Nigeria, on the other hand, has taken a more cautious approach and has regulations in place to prevent it. Telephone companies do not need to store funds.
This helps avoid over-reliance on a single platform and protects competition from fintechs. Intra-African payments is also an area where mobile money plays a key role, and can facilitate cross-border transfers, but issues such as transaction limits, payment tracking, and data privacy need to be regulated first. There is.
Telcos collect extensive user data that, if left unchecked, can result in unfair advantage. Not checked. Ultimately, mobile money will simplify transactions and ensure that people You can send and receive money easily. While that's the case Unlikely to control Nigeria's finances Similar to the system M-PESA has in Kenya, it remains an important trading option.
For customers, convenience is a priority, whether through a telco, bank, or fintech. The goal is to make payments faster, safer and more accessible.
move forward
The future of cross-border payments in Africa depends on fostering a collaborative ecosystem that leverages the strengths of blockchain, mobile money, and traditional financial institutions.
By addressing regulatory challenges, fostering innovation, and prioritizing user experience, Africa can unlock the full potential of cross-border payments to drive economic growth, empower individuals, and improve financial Inclusion can be strengthened.