This article was contributed by Osideinde Adewale. COO, Bitnob, Oluwaseyi Otunla, COO OneKard and Nika Naghavi, Deals and Strategic Partnerships Director, Zeps (WorldRemit and Sendwave) as part of the Emerging Trends in Cross-Border Payments: A Growth Guide for Stakeholders report authored by Aroghene Favour Ndulu and Paschal Okeke.
E-commerce and digital marketplaces top the list of sectors with the most significant potential for growth in cross-border payments. With more people shopping internationally for better deals, platforms like AliExpress, Shein, and the latest Temu are thriving. They’ve simplified cross-border payments, breaking down barriers for buyers globally, including in Africa.
Next is freelancing and remote work, which have reshaped global hiring. US and European companies hire from Africa’s talent pools, driving demand for effective cross border payroll systems.
Travel and tourism are also booming. Tourists want payment options that work seamlessly across borders as travel rebounds, avoiding currency conversion headaches. This demand continues to grow as travel becomes more accessible.
International Trade. Small and medium-sized enterprises (SMEs) are a major driver of cross-border payments. SMEs sourcing goods internationally rely on cheaper solutions to pay suppliers, especially in China and other global hubs.
Addressing the high cost of remittance fees in Africa
Remittance fees in Africa often exceed 8-10% of transaction values, far above the global average of 6%. These high costs burden millions who rely on remittances for daily expenses, education, and investments. Companies can address this challenge by focusing on technology, partnerships, and government collaboration.
For instance, blockchain-based digital assets such as Bitcoin and stablecoins provide a more cost-effective way to transfer money by reducing traditional processing fees. Platforms like Bitnob enable users to send and receive funds at little to no cost by leveraging digital assets in the background. These platforms offer competitive exchange rates and instantly settle funds to mobile money wallets or bank accounts in the recipient’s local currency.
Similarly, digital wallets and mobile money platforms like M-Pesa in Kenya and Paga in Nigeria reduce dependency on banks, allowing funds to be sent directly to recipients. This reduces costs and improves accessibility.
Regulatory bottlenecks and high taxes contribute a lot to remittance costs. Companies can work with governments to advocate for reduced transaction taxes, streamlined licensing for money transfer operators, and policies that encourage open financial ecosystems.
Serving the underbanked with cross-border solutions
Underbanked and rural populations represent a largely untapped market for cross-border payment solutions, especially in emerging regions like Africa. Despite limited access to traditional banking, these communities are becoming active participants in the global economy through remittances, e-commerce, and small-scale trade.
To capitalise on their growing economic role, solutions designed for small-scale transactions and local currencies can help reduce barriers, making international payments more accessible and less intimidating with features like dynamic currency conversion and real-time, affordable exchange rates.
In regions with limited smartphone penetration, cross-border payments that function via SMS, USSD, or offline modes can further accelerate adoption. Providers can provide uninterrupted service by ensuring transactions auto-complete once connectivity is restored, even in low-tech environments.
Complementing these with educational initiatives on currency exchange, digital wallets, and secure transactions builds trust and loyalty. Providers who educate users with knowledge alongside financial services will stand out and drive meaningful financial inclusion in these underserved markets.
Infrastructure and cross-border payments
Domestic payment rails form the backbone of any cross-border payment journey. Globally, systems like NIBSS (Nigeria Inter-Bank Settlement System) in Nigeria, PIX in Brazil, and UPI in India enable instant local transfers. When these domestic systems are optimised and connected to cross-border networks, they reduce friction, improve speed, and improve reliability.
To make cross-border payments accessible for SMEs and underserved populations, domestic rails must support different financial institutions, including banks, fintechs, and mobile money operators. Small businesses risk being excluded from global markets without this foundation, stifling growth.
Platforms like Paystack and Flutterwave exemplify how solid domestic systems can connect local merchants to international buyers, unlocking opportunities and bridging gaps between domestic and global economies. This demonstrates that a solid domestic infrastructure is essential for building a thriving cross-border payment ecosystem.
The role of partnerships in expanding cross-border payment networks
Cross-border payments span different markets, each with unique regulations, cultures, and technologies. In Africa alone, 54 countries use 42 different currencies. Strategic collaborations allow companies to leverage local expertise and infrastructure, helping them efficiently scale their offerings to new markets while navigating complex regulatory ecosystems like anti-money laundering (AML) and Know Your Customer (KYC) requirements.
Partnerships also fuel innovation. Banks contribute regulatory knowledge and trust, while fintech brings agility and advanced technology, creating solutions like real-time payments and multi-currency wallets. Moreover, collaborations with global e-commerce platforms improve customer experiences, delivering faster, cheaper, and more transparent payment options.
You can read the full report here.
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Osideinde Adebisi Adewale is the Chief Operating Officer (COO) at Bitnob, a pioneering fintech company that transforms financial services and cross-border payments across Africa and beyond. With over a decade of experience, Adewale is a dynamic business leader specialising in scaling businesses through strategic planning, innovative product development, operational excellence, and market expansion.
Oluwaseyi Otunla, COO OneKard. Seyi is a finance professional with over 3 years of experience in consulting at PwC. BSc in Economics and Management from The University of Kent. Skilled in optimizing processes and delivering impactful results in dynamic, fast-paced environments.
Nika Naghavi. Nika is an experienced fintech professional with background in mobile money, digital financial inclusion, and remittances. She has recently joined Zepz to lead strategic partnerships and complex commercial partnerships. Before Zepz, she was at Onafriq (formerly MFS Africa), where she held various roles, including providing strategic advisory support to the Founder and CEO, leading network expansion, and managing the remittances portfolio.
