Digital payments to power Africa’s $1 trillion cross-border market by 2035, Oui Capital says

Africa’s cross-border payments market is projected to surge to $1 trillion by 2035, up from $329 billion in 2025, according to a new report by Oui Capital, an Africa-focused venture capital firm. The growth, driven by a 12% compound annual growth rate (CAGR), reflects accelerating demand for faster, lower-cost payment solutions as digital rails replace legacy banking systems.

Despite losing billions annually to high remittance fees, FX inefficiencies, and regulatory fragmentation, Africa’s cross-border payments sector is gaining significant momentum. The expansion is fueled by mobile money platforms, blockchain-based solutions, and fintech APIs, which are reshaping how consumers and businesses move money across borders.

“The growing adoption of digital payment channels and shifting migration patterns is formalising informal transactions by providing faster and cheaper alternatives to traditional bank-based transfers,” the report notes. “Mobile money, fintech solutions, and regulatory reforms are driving this shift, making digital channels more competitive.”

Cross-border transactions remain a vital pillar in Africa’s financial system. Remittance inflows hit nearly $100 billion in 2023, accounting for 5.2% of the continent’s GDP.

The report noted that while remittance inflows are crucial for household needs and also serve as a financial backbone for informal trade and businesses across the continent, a significant share of these transactions still bypass formal channels. In 2022, up to 75% of remittance flows in Sub-Saharan Africa were informal, as formal transfers continue to attract high fees averaging 7.4–8.3%. This reinforces the need for more accessible and cost-efficient cross-border payment systems.

It identified the key growth drivers to include rising migration, mobile money expansion, urbanisation, and fintech penetration and underscores that over 781 mobile money accounts were registered across the continent in 2022, processing $837 billion transactions, two-thirds of the global total. It noted that the mobile money landscape, dominated by M-Pesa, MTN MoMo, and Airtel Money, grows at 48% annually and has handled 30% of Sub-Saharan Africa’s remittance volume, with lower fees of 1.5% – 3%, compared to the 7% average charged by banks.

Digital wallets and neobanks are pushing the transformation further, with the average fee on such platforms falling to 3.5%, compared to 8–12% through traditional financial institutions. Meanwhile, crypto and blockchain solutions—led by players like Afriex, Bitnob, and Stellar-powered rails—are emerging as the lowest-cost option, offering near-instant transfers with zero to 1% fees.

This trend signals a growing shift towards digital payment and blockchain-powered remittance solutions, as they become more accessible, faster, and cheaper compared to traditional banking dominated by cash and intermediary systems.

However, the report noted that Africa’s traditional cross-border rails still largely rely on SWIFT-based networks and corresponding banks, making them not only costly but slow and poorly suited to the continent’s low-value and high-frequency monthly transaction patterns.

“Since most African banks lack direct international clearing capabilities, these remittance providers must route funds via SWIFT, leading to high transaction costs and extended processing times,” the report noted.

Settlement through these legacy rails takes up to a few days, with total fees up to 10% per transaction. This inefficiency disproportionately affects small-scale traders and migrants. However, fintech platforms like Chipper Cash and Afriex offer faster, low-cost alternatives, often settling payments within minutes and charging fees as low as 0–1%.

It predicts that Africa’s cross-border payment sector is poised for further growth, with falling transaction costs, growing stablecoin adoption, and improved interoperability among financial institutions. However, legacy providers must adapt to the shift or risk being left behind in the continent’s fast-digitising financial ecosystem.