Onafriq, Africa’s largest payments gateway, has partnered with Circle, the issuer of the USDC stablecoin, to transform cross-border payments and digital financial services across the continent.
The partnership, announced on April 30, seeks to leverage blockchain technology and stablecoins to streamline transactions, cut costs, and boost financial inclusion.
A solution to costly and inefficient payments
Also, the alliance will directly address the inefficiencies affecting intra-African payments, where over 80 percent of transactions currently rely on correspondent banks outside the continent, incurring about $5 billion in annual transaction fees and hindering economic integration.
Onafriq and Circle intend to disrupt this status by piloting USDC-powered settlement solutions within Onafriq’s network, which connects over 500 wallets and 200 million bank accounts across more than 40 African markets.
“Our partnership with Circle is an important milestone, reinforcing Onafriq’s commitment to harnessing technology to remove complexity from cross-border payments,” stated Dare Okoudjou, founder and CEO at Onafriq.
“By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs, and strengthen trust. This collaboration underscores our vision to democratise access to payments and drive financial inclusion across the globe.”
Okoudjou further emphasized the proactive nature of this partnership, saying, “We’re not just envisioning the future of payments – we’re actively building it.”
On her part, Miriam Kiwan, VP, Middle East & Africa at Circle, echoed this sentiment, noting the potential of the African market for digital asset innovation.
“The emerging markets that Onafriq serves holds tremendous potential for digital asset innovation, particularly in the adoption of stablecoins for cross-border payments,” she noted.
“Our partnership with Onafriq aligns perfectly with Circle’s mission to promote financial inclusion and improve efficiency in areas where traditional banking has often been costly and inaccessible.”
Meanwhile, the collaboration between the two companies is viewed as a crucial step towards establishing a more inclusive and self-reliant pan-African financial system. The ultimate goal is to create a faster, more efficient, and economically empowering financial future for the continent.
“Together, we aim to transform how money moves across borders, offering secure and transparent digital payment rails that enhance economic empowerment and connectivity,” concluded Kiwan.
About Onafriq
Onafriq is a leading pan-African payments company facilitating interoperable cross-border and domestic digital payments.
The financial company is committed to creating access to a borderless world for millions of Africans and African businesses, building upon the innovation initiated by mobile money to foster greater possibilities, connections, and interoperability.
The company has a present and diverse team across over 30 nations and has also secured $200 million in Series C funding, further solidifying its position in the African financial landscape.