Yellow Card, Flutterwave, Onafriq: Why Africa’s Fintech Sector is Turning to Stablecoins

This post was originally published by The Africa Report

Africa’s fintech sector is increasingly embracing stablecoins as it seeks to streamline cross-border payments, overcome currency volatility, and offer faster, cheaper alternatives to traditional remittance and settlement channels.

Stablecoins – crypto tokens pegged to fiat currencies like the US dollar – are reportedly gaining traction as fintech players look to bypass unreliable correspondent banking systems. In recent months, firms like Yellow Card, Flutterwave, and Onafriq (formerly MFS Africa) have ramped up their use of stablecoins to facilitate international payments and settlements across the continent.

Dollar demand meets crypto rails

In countries plagued by inflation and currency devaluation – such as Nigeria, Ghana, and Zimbabwe – stablecoins offer a practical solution.

“Businesses in Africa want to hold and transact in dollars,” says Chris Maurice, CEO of Yellow Card.

“Stablecoins make that possible with near-instant settlement and minimal fees.”

Yellow Card has long supported USDC transactions on its platform and recently partnered with Coinbase to expand access to the stablecoin across 20 African countries. The firm enables both individual and business users to send, receive, and convert stablecoins to local fiat currencies, helping to bridge the gap between on-chain assets and off-chain realities.

Flutterwave, one of Africa’s leading payments companies, announced a partnership with USDC issuer Circle in June 2024. The partnership focuses on enabling cross-border payments using USDC, with an eye on simplifying dollar-based settlements for African businesses and freelancers.

Onafriq, meanwhile, has integrated with the Stellar blockchain to enable USDC-powered payments across its pan-African network. The company’s reach – spanning over 400 million mobile wallets, bank accounts, and cash outlets in more than 35 African countries – makes it a strategic player in the stablecoin ecosystem.

Alternative to legacy rails

Traditional cross-border payment systems in Africa rely heavily on SWIFT and correspondent banks, which often introduce delays, high costs, and transaction limits. Stablecoins offer an alternative that is not only faster but also more transparent and programmable.

“Sending money from Ghana to Kenya can involve multiple intermediaries, with each taking a cut,” explains a Nairobi-based fintech founder.

“Stablecoins cut through that complexity by settling value on-chain, directly and quickly.”

This efficiency is particularly valuable in business-to-business (B2B) payments and trade settlements, where speed and transparency are critical. By removing intermediaries and operating 24/7, stablecoins have the potential to reshape Africa’s payments infrastructure.

Regulatory caution persists

Despite the benefits, regulatory uncertainty continues to cloud the path forward. Central banks across Africa have been cautious about stablecoin adoption, often citing concerns about money laundering, capital flight, and consumer protection.

Some regulators, like Nigeria’s Central Bank, have imposed restrictions on crypto-related services, though recent developments suggest a more open approach may be emerging. Kenya and South Africa are also actively studying how to regulate stablecoins within broader crypto and payments frameworks.

Industry players believe clearer regulation would unlock even more value.

“We need rules that protect consumers but also encourage innovation,” says Yellow Card’s Maurice. “Stablecoins are not just a crypto fad – they’re infrastructure.”

Outlook: Building the rails

As demand for dollar-denominated transactions grows and frustrations with traditional systems mount, African fintechs are building new rails that incorporate stablecoins at their core. The trend is driven not by speculation, but by utility: stablecoins are solving real-world problems in cross-border payments.

With global players like Coinbase and Circle now partnering with African firms, and local startups pushing adoption on the ground, the stablecoin narrative is shifting from niche to mainstream in African fintech.

The result could be a more inclusive, efficient, and dollar-friendly financial system – one built as much with code as with cash.

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