tl;dr
Africa’s cross-border payment market is projected to reach $1 trillion by 2035, growing from $329 billion in 2025 at a 12% CAGR. Mobile money, dominant in Africa with two-thirds of transacted value in 2024, drives this growth, accounting for 30% of cross-border payments in Sub-Saharan Africa in 2022...
Africa’s cross-border payment market is poised to skyrocket, projected to hit an impressive $1 trillion by 2035, up from $329 billion in 2025 with a robust 12% compound annual growth rate (CAGR). This surge is primarily fueled by the explosive growth of mobile money, which dominates two-thirds of Africa’s transaction value in 2024 and accounted for 30% of cross-border payments in Sub-Saharan Africa in 2022, with an expected annual growth rate of 48%.
Despite facing hurdles such as steep remittance fees averaging up to 8%, innovative digital solutions like fintech, mobile money, and blockchain technologies are driving fees down dramatically—to as low as 3%—saving billions for Africans each year. Blockchain technology in particular enables peer-to-peer transactions with fees ranging from 0 to 1%, providing a faster, cheaper alternative. Stablecoins add another layer of convenience and cost-efficiency, offering users stable-value digital payment options without volatility concerns.
However, challenges remain. The absence of a unified intra-African clearing system means many transactions still depend heavily on USD networks, creating bottlenecks and inefficiencies. Regulatory uncertainties, especially around digital assets and blockchain, persist as major impediments, restricting broader sector growth and financial inclusion.
The digital payments revolution in Africa eradicates several intermediaries traditionally involved in cross-border payments, significantly lowering costs. For instance, blockchain-based payment rails cut transaction time to minutes with minimal fees, funded through bank transfers, mobile money, or other on-ramp methods. This disruptive technology is transforming how millions transact across borders.
As remittance expenses drop, the economic impact on African families is profound—each 1% reduction in fees translates to an estimated $6 billion saved yearly. Yet, the road ahead necessitates regulatory clarity and infrastructure development to unlock the full potential of Africa’s payment ecosystem.
Will regulatory frameworks and technological innovation move in tandem to deliver seamless, affordable cross-border payments to millions across Africa? The answer will shape the continent’s financial future and its integration into the global economic fabric.