Abstract
This paper examines cross-border payment challenges across Africa's 54 countries, analyzing why average transaction costs (7.4-8.3%) remain 2.5x above G20 targets despite significant fintech innovation. Through comparative analysis of two representative platforms, Flutterwave Send (traditional infrastructure model) and Kredete (blockchain-stablecoin model), plus evaluation of emerging Pan-African Payment and Settlement System (PAPSS) infrastructure, we identify four core barriers: fragmented regulatory frameworks requiring separate licenses across 54 jurisdictions, limited currency pair liquidity forcing USD/EUR intermediation, high intermediation costs averaging 7.4-8.3%, and KYC fragmentation with no continental data protection baseline. Research reveals that $54 billion in annual remittances supports economies where fees can reach 12.7% in certain corridors. Findings suggest that optimal solutions require hybrid architectures that combine PAPSS for intra-African transfers (17 countries, 115+ banks), stablecoin rails for diaspora corridors (transaction costs <$1), and API aggregation for last-mile delivery. However, I identify institutional adoption speed as PAPSS's critical constraint, contradicting technology-centric narratives. Expert interviews reveal that infrastructure availability is insufficient without investment capacity and political will. This research contributes practical frameworks for fintech developers, policymakers, and financial institutions navigating Africa's evolving payment landscape, demonstrating that sustainable competitive advantage requires architectural hybridity rather than technological purity.
Keywords
Cross-Border Payments, Financial Technology, PAPSS, Remittances, Stablecoins
Citations
IRE Journals:
Precious I Ogar "Cross-Border Payments in Africa: Challenges and Emerging Models" Iconic Research And Engineering Journals Volume 9 Issue 9 2026 Page 476-480 https://doi.org/10.64388/IREV9I9-1714879
IEEE:
Precious I Ogar
"Cross-Border Payments in Africa: Challenges and Emerging Models" Iconic Research And Engineering Journals, 9(9) https://doi.org/10.64388/IREV9I9-1714879
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IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
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