Africa’s cross-border payments industry is on track to reach $1 trillion by 2035, growing from $329 billion in 2025. This is according to a new report by Oui Capital, a venture capital firm focused on Africa. The report says the market will grow at a rate of 12% each year, thanks to rising demand for faster and cheaper payment methods as digital tools replace outdated banking systems.
Right now, Africa loses billions every year due to high remittance fees, currency exchange issues, and different regulations across countries. Still, digital payment methods are gaining ground. Mobile money platforms, blockchain systems, and fintech APIs are changing how people and businesses send money across borders.
Oui Capital’s report says more people are using digital payments because they are quicker and more affordable than traditional bank transfers. These new tools are helping formalize money transfers that were once done informally. Mobile money, new financial technology, and updated government policies are all helping to make digital payments more popular.
Remittance payments continue to play a big role in Africa’s economy. In 2023, people sent nearly $100 billion to the continent from abroad, which made up 5.2% of Africa’s total economy. These funds help families with daily needs and support small businesses and informal trade across borders.
Still, most of these transfers do not go through banks. In 2022, about 75% of remittances in Sub-Saharan Africa happened through informal channels. That’s because formal transfers are expensive, with fees ranging from 7.4% to 8.3%. This highlights the need for more affordable and easy-to-use cross-border payment systems.
The report by Oui Capital lists the main reasons for this growth: more migration, growing use of mobile money, increasing urban populations, and more access to financial technology. In 2022 alone, people in Africa opened over 781 million mobile money accounts. These accounts processed $837 billion worth of transactions—about two-thirds of the total global mobile money volume.
Mobile money services like M-Pesa, MTN MoMo, and Airtel Money are leading the way. They handle 30% of Sub-Saharan Africa’s remittances and charge much lower fees—between 1.5% and 3%—compared to banks, which often charge 7% or more.
Digital Wallets and Crypto Speed Up Transfers
Digital wallets and online banks (called neobanks) are also pushing this change. They offer even cheaper fees—around 3.5%—compared to 8–12% at traditional banks. On top of that, crypto and blockchain platforms like Afriex, Bitnob, and those using Stellar technology offer nearly instant money transfers with almost no fees, sometimes as low as 0–1%.
This trend shows that more Africans are choosing digital and blockchain-based tools to send and receive money. These methods are faster, cheaper, and easier to access than the old systems that rely on cash and several middlemen.
However, the report warns that many traditional banks in Africa still depend on outdated systems like SWIFT and partnerships with foreign banks to move money internationally. These methods are not only expensive but also slow and poorly suited for small, frequent payments.
Because most banks in Africa can’t clear international payments directly, they must go through the SWIFT system. This adds to the cost and delay. Transfers can take several days and come with total fees of up to 10% per transaction. Small traders and migrants suffer the most from these high costs.
But fintech platforms like Chipper Cash and Afriex are solving this problem. They offer quicker and cheaper services, often completing payments in minutes and charging as little as 0–1% in fees.
Oui Capital believes Africa’s cross-border payment market will keep growing as transaction costs drop, stablecoins become more common, and banks become more connected. Still, traditional providers will need to adjust to these changes or risk falling behind in Africa’s fast-growing digital economy.
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