Africa's Cross-Border Payments Market Set to Triple by 2035

Africa’s cross-border payments market has seen steady and significant growth in recent years, propelled by regulatory reforms, infrastructure modernization, and the rapid adoption of mobile money solutions.

This upward trajectory is expected to continue, with the market projected to more than triple by 2035, increasing from an estimated US$329 billion in 2025 to US$1 trillion in 2035, according to a new report by Oui Capital.

The report, released in May, explores Africa’s evolving cross-border payments landscape, analyzing the current state of remittances in Africa, the sector’s opportunities and challenges, and the key drivers behind the market’s expansion.

According to the report, formal remittance inflows alone have maintained strong momentum, growing at an annual rate of 10-15%, averaging 12% over the past five years. Between 2020 and 2023, remittance inflows rose by 14.8%, largely fueled by increasing diaspora transfers.

In 2025, Africa’s cross-border payments market is valued at US$329 billion, with a projected compound annual growth rate (CAGR) of 12%. By 2035, the market is expected to surpass US$1 trillion.

Regulatory developments

Several factors underpin this growth. In particular, landscape regulatory initiatives, such as the Pan-African Payment and Settlement System (PAPSS), and the African Continental Free Trade Area (AfCFTA), are accelerating the modernization of cross-border payments, and fueling usage.

Launched in 2022, PAPSS enables instant cross-border payments in local currencies across about 15 African jurisdictions, with projected annual savings of up to US$5 billion.

Established in 2018, AfCFTA is a free trade area encompassing most of Africa that aims to create a single, liberalized market, reducing barriers to capital and labor, and harmonize financial systems, among other goals.

Mobile money surges

Another major catalyst of the growth of the cross-border payment industry in Africa is the surge in mobile money adoption, with 781 million registered accounts recorded on the continent in 2022. In Sub-Saharan Africa (SSA), mobile money now facilitates 30% of remittances, handling US$16 billion in 2022 with an annual growth rate of 22%.

Mobile money remittances are compelling to consumers because they offer faster, and more accessible alternative to traditional banking and money transfer services, especially in areas with limited financial infrastructure. They also typically have much lower fees, ranging from 1.5% to 3%, compared to traditional bank transfers, which often cost 7% or more.

Fintech’s transformative growth

In Africa’s cross-border payments landscape, fintech is playing a transformative role, improving efficiencies and cutting costs. Cryptocurrencies offer a cheaper and faster alternative to traditional banks, cutting remittance fees by up to 60% and enabling faster settlements with lower foreign exchange (FX) costs. Application programming interfaces (APIs) are enhancing direct wallet-to-wallet remittances and interoperability, reducing reliance on costly intermediaries. Finally, neobanks and digital wallets are offering seamless cross-border transfers, making remittances faster, more accessible, and cost-effective through mobile and online platforms.

These solutions are quickly gaining traction. Since 2020, digital remittances usage has doubled, and Africa now accounts for 71% of mobile remittance value.

Fragmented regulation and intense competition remain top challenges

Despite strong growth and opportunities, cross-border payment companies in Africa face several challenges.

One major hurdle is the continent’s fragmented regulatory environment. Each country has its own financial regulations, anti-money laundering (AML) rules, and capital controls, making it difficult for cross-border payment provider to scale and operate across multiple markets.

In addition, Africa’s cross-border payments industry is becoming increasingly crowded. Traditional banks, global remittance giants like Western Union, and MoneyGram, and large fintech firms such as Wise, and Revolut, still dominate many key corridors. However, African-based fintech companies such as LemFi, Geegpay, and Chipper Cash, are gaining significant traction, offering more localized and cost-effective solutions for cross-border payments. This has created a crowded market where competition is intensifying.

Finally, the industry faces high customer acquisition costs. In particular, in emerging markets where fintech adoption is rising but where digital literacy remains low, user education is critical and expensive. Customer acquisition costs (CAC) for fintech companies can range from US$5 to US$30 per user, with long-term profitability depending on transaction frequency and the ability to cross-sell other financial services.

Africa’s cross-border payment landscape

Africa has a dynamic and diverse cross-border payment ecosystem made up of liquidity providers, network aggregators, merchants of records, business-to-business (B2B) payment processors, blockchain-powered platforms, and last-mile service providers.

Liquidity providers like Klasha, Yellow Card, and Mansa, help businesses send, receive, and convert payments at competitive foreign exchange rates. B2B payment processors, such as Fincra, Flutterwave, and Cellulant, allow companies to embed financial services seamlessly via APIs.

Blockchain-powered platform providers, including Bitnob, Juicyway, and Muda, use distributed ledger technology (DLT) and digital assets to help individuals and small and medium-sized enterprises (SMEs) receive and convert foreign currency more efficiently.

Finally, last-mile payment providers like Chipper Cash, Paysend, and Nala, focus on making it simpler for end users to receive and convert foreign currency quickly and affordably.