Flutterwave, Yellow Card, Onafriq bet on USDC to turbocharge cross-border payments for African SMEs
In a significant move to overhaul cross-border payments for Africa, three of the continent’s leading fintech firms – Flutterwave, Yellow Card and Onafriq – have merged forces with Circle, the global company behind the USDC stablecoin. Announced on Monday, 28 April 2025, this collaboration aims to improve the speed, reliability, efficiency and cost-effectiveness of international transactions SMEs throughout Africa. The partnership marks a significant advancement in strengthening payment solutions for African startups within the continent’s burgeoning digital economy.
Circle, a globally recognised financial technology company, leverages blockchain to enhance international payments. Its digital currency, USDC, is a stablecoin pegged to the US dollar, ensuring that its value doesn’t fall or rise at intervals, thus making it a safe option for secure and swift money transfers. Through this alliance with Flutterwave, Yellow Card and Onafriq, Circle intends to empower African businesses by tackling the persistent challenges of slow and expensive international transactions.
Africa`s cross-border payments hurdle
Sending money across African countries has always been tough. From lengthy bank queues, protracted transfer times to high bank charges, and complexities of currency, the World Bank reports that Africa bears the highest cross-border remittance costs globally, with fees often exceeding 8%. For SMEs and merchants engaged in regional trade, these inefficiencies hinder growth and stunt profitability. By integrating USDC into African payment systems, this alliance holds the potential to transform the landscape much like how Paystack’s deal with Stripe in 2020 streamlined international payments for African startups.
Individual roles in the collaboration
Flutterwave, a prominent African payment gateway, will play a key role in this partnership by facilitating the fast adoption of this option by business owners. Leveraging Circle’s network, Flutterwave will also spearhead efforts to educate business owners on the advantages and practical applications of USDC in their transactions.
Yellow Card, a cryptocurrency exchange operating in 16 African countries, will contribute by making it easier for individuals and businesses to acquire, sell, and transfer cryptocurrencies, including USDC. A key aspect of Yellow Card`s contribution will be streamlining the conversion between traditional currencies and USDC.
Onafriq, the pan-African interoperability network formerly known as MFS Africa, will integrate with Circle`s network to provide users across the continent with access to lockchain-based payment solutions through their existing mobile money wallets and banking channels.
Read Also: What MANSA’s $10M Raise Means for African SMEs Navigating Cross-Border Payments
Implications for African businesses
This alliance will delivers three-fold benefits to African SMEs: reduced cost enables businesses to circumvent hefty bank charges through the use of USDC; accelerated transaction speed allows near real-time cross-border payment transfers, a stark contrast to traditional waiting delays which often run into days; and the enhanced security, guaranteed by the blockchain technology to provide a transparent and secure payment environment.
Jeremy Allaire, Circle’s CEO, said, “Africa is one of the most exciting places for digital finance to grow. By partnering with top African companies like Flutterwave, Yellow Card, and Onafriq, we are helping to build new opportunities for businesses on the continent.”
As Africa’s digital economy trends upwards, partnerships of this sort are expected to streamline global market access for young entrepreneurs and SMEs. By offering a departure from cumbersome and costly payment infrastructures, leveraging stablecoins like Circle`s USDC for on and off-ramping will set millions of African businesses on a faster, secure, and dependable track for international commerce.
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