Cross-Border Payments in Africa: Challenges and Emerging Models

References

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[2] TryDuplo, "Cross-border Payments in Africa: The Complete Guide to International Payments, Challenges, and Solutions in 2025," December 9, 2025. Available: https://tryduplo.com/blog/cross-border-payments-in-africa

[3] International Monetary Fund and World Bank, "South Africa: Technical Assistance Report-Cross-Border Payments: South Africa-Zimbabwe Corridor Diagnostic Report," Technical Assistance Reports 2025, 093, 2025.

[4] TryDuplo, "Cross-border Payments in Africa," December 9, 2025.

[5] Financier Worldwide, "Cash no longer king: cross-border payments in Africa," 2025. Available: https://www.financierworldwide.com/cash-no-longer-king-cross-border-payments-in-africa

[6] TryDuplo, "Cross-Border Payments for CFOs in 2026: Compliance, FX, and Cash Flow Explained," February 13, 2026.

[7] Techpoint Africa, "The problem with instant cross-border payments in Africa is deeper than technology — central bank executives," September 30, 2025.

[8] Financial Stability Board, "G20 Roadmap for Enhancing Cross-border Payments," 2025.

[9] IMF and World Bank, Technical Assistance Reports 2025, op. cit.

[10] Financial Stability Board, op. cit.

[11] Techpoint Africa, op. cit.

[12] UseAccrue, op. cit.

[13] UseAccrue, op. cit.

[14] TryDuplo, "Cross-Border Payments for CFOs in 2026," op. cit.

[15] TryDuplo, "Cross-Border Payments for CFOs in 2026," op. cit.

[16] TechCabal, "How Flutterwave is powering the future of cross-border payments," October 16, 2025.

[17] Flutterwave Blog, "Send App by Flutterwave Relaunches in the US with Expanded Money Transfer to Africa," July 3, 2025.

[18] TechCabal, op. cit.

[19] TechCabal, op. cit.

[20] Partech Partners, "Kredete Raises $22M Series A," September 15, 2025.

[21] Tech In Africa, "Kredete Secures $22M in Series A Funding," September 15, 2025.

[22] Kredete, "Kredete Launches Africa's First Stablecoin-Backed Credit Card," May 23, 2025.

[23] TechCabal, "Kredete raises $22M to launch Africa's first stablecoin-backed credit card," September 15, 2025.

[24] Wikipedia, "Pan-African Payment and Settlement System," January 13, 2026.

[25] Mobile Ecosystem Forum, "Pan-African Payment and Settlement System (PAPSS), the revolution of cross-border payments in Africa," February 19, 2025.

[26] PAPSS, "How it works," October 20, 2021. Available: https://papss.com/how-it-works

[27] International Trade Administration, "Ghana Pan African Payments Settlement System (PAPSS) Update," 2024.

[28] International Trade Administration, "Pan-African Payment and Settlement System," 2025.

[29] Mobile Ecosystem Forum, op. cit.

[30] Techpoint Africa, op. cit.

@article{1714879,
      author = {Precious I Ogar},
      title = {Cross-Border Payments in Africa: Challenges and Emerging Models},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {9},
      pages = {476-480},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1714879.pdf},
      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},
      month = {March},
      doi = {https://doi.org/10.64388/IREV9I9-1714879}
  }