African giant payment gateway, Onafriq, has partnered with Circle, a global stablecoin issuer to help reduce high costs of cross-border payments across the continent using USDC- a regulated stablecoin backed by US dollars.
Under the agreement, Circle will pilot USDC settlements across Onafriq’s extensive network, which spans over 40 African countries and connects more than 500 digital wallets and 200 million bank accounts.
The initiative aims to address longstanding challenges in African cross-border payments, including high transaction fees, slow processing times, and currency volatility.
“By integrating USDC, we aim to simplify financial transactions for both institutions and individuals, reduce costs, and strengthen trust,” said Dare Okoudjou, founder and CEO of Onafriq.
Africa remains one of the most expensive regions for remittances globally, with fees averaging over 7%, according to the World Bank.
Currently, over 80% of intra-African transactions are processed through correspondent banks located outside the continent and settled in foreign currencies such as the US dollar or euro-leading to approximately US$5 billion in fees each year.
The Onafriq-Circle partnership positions USDC as a viable alternative to traditional remittance channels, with the potential to significantly cut costs for individuals and businesses.
