Yellow Card, Mastercard Move to Cut Remittance Costs in Africa with Stablecoins 

Africa’s expensive remittance system may soon face major disruption as Mastercard and Yellow Card deepen efforts to expand stablecoin payments across the continent.

The two companies recently unveiled a partnership focused on accelerating stablecoin-based payment solutions across Eastern Europe, the Middle East, and Africa. Nigeria is among the major markets expected to benefit from the initiative.

The move comes as businesses and consumers across Africa continue to battle slow settlement times, high transfer fees, foreign exchange complications, and liquidity shortages tied to cross-border payments.

Speaking after the announcement, Yellow Card Nigeria’s Vice President of Global Operations and Managing Director, Lasbery Oludimu, said the continent’s payment infrastructure still struggles to meet modern financial demands.

According to her, stablecoin payments in Africa could help reduce these long-standing problems by allowing transactions to move faster and at far lower costs.

She referenced World Bank figures showing that sending $200 to Sub-Saharan Africa cost an average of 8.78% in the first quarter of 2025. That figure remains significantly above the global average of 6.49%.

“Africa remains the most expensive region in the world to receive remittances,” Oludimu said.

Why businesses are paying attention

Oludimu explained that many Nigerian companies involved in imports, exports, supplier settlements, and regional trade still experience delays when transferring money internationally.

“The biggest issues are cost, speed, settlement delays, access to liquidity, and FX friction. These are not abstract problems,” she stated.

She argued that stablecoin payments in Africa offer a practical alternative because transactions can operate around the clock without relying on traditional banking hours.

“Stablecoins move at internet speeds, cost fractions of a cent to send, and operate 24/7, reducing settlement times from days to seconds,” she added.

The partnership also signals a wider shift in how stablecoins are viewed globally. Rather than remaining tied mainly to cryptocurrency trading, companies now increasingly see it as part of mainstream financial infrastructure.

Oludimu said the collaboration aims to connect traditional banking systems with blockchain-powered payment networks across Nigeria, Ghana, Kenya, South Africa, and the UAE.

She also pointed to Mastercard’s planned acquisition of BVNK as another sign that global payment companies are becoming more comfortable with blockchain settlement systems.

Remittance inflows into Africa exceeded $104 billion in 2024, according to World Bank data cited by RemitSCOPE. Yet many African businesses still depend heavily on older correspondent banking systems.

“The question is simple: if we have technology that can reduce cost, improve settlement speed, and still meet compliance expectations, why should African consumers and businesses continue to rely only on systems that were not built for today’s needs?” she asked.

Oludimu also stressed that regulation remains critical for wider adoption of stablecoin payments in Africa.

According to her, proper compliance systems must include customer verification, sanctions screening, transaction monitoring, and anti-money laundering controls.

“You cannot scale responsibly without strong compliance foundations and constant dialogue with regulators,” she said.

She warned that unclear policies could slow innovation while pushing users toward less transparent channels.

Meanwhile, interest from Nigerian businesses continues to rise. Oludimu revealed that nearly 30% of Yellow Card customers already use stablecoin infrastructure for treasury operations, supplier payments, contractor settlements, and cross-border transactions.

“Many of these businesses are not interested in crypto as speculation. They are interested in solving real operational problems,” she added.