Cross-border payments are central to African trade, remittances, and economic growth. Yet for thousands of businesses across the continent, cross-border payments remain one of the most frustrating operational challenges, expensive, slow, and unnecessarily complex.
A Lagos-based importer paying suppliers in Guangzhou. A Nairobi tech company compensating remote developers in Eastern Europe. A Johannesburg exporter receiving payments from European buyers. These everyday business scenarios share a common pain point: the friction of international payments in Africa.
But 2025 marks a turning point. Africa’s cross-border payments landscape is experiencing unprecedented transformation, driven by technological innovation, regional integration initiatives, and a new generation of payment infrastructure designed specifically for African realities.
This comprehensive guide breaks down everything businesses need to know about cross-border payments in Africa, from understanding the current challenges to implementing solutions that actually work.
Understanding Cross-border Payments in Africa
Cross-border payments are financial transactions where the payer and recipient are located in different countries. Unlike domestic payments that process through single-country infrastructure, international payments must navigate multiple banking systems, currencies, regulatory frameworks, and intermediaries.
The Scale of Africa’s Cross-border Payment Market
Africa’s cross-border payments market represents a massive economic opportunity. As of 2025, the market is valued at approximately $329 billion and projected to triple to $1 trillion by 2035, representing a compound annual growth rate of about 12%.
This growth is driven by several converging factors:
Intra-African Trade Expansion: The African Continental Free Trade Area (AfCFTA), launched in 2021, creates a single market of 1.3 billion people with a combined GDP of $3.4 trillion. This integration is accelerating intra-African trade and creating demand for efficient cross-border payments.
Remittance Flows: Africa receives over $96 billion in annual remittances, making it one of the world’s largest inbound remittance regions. These international payments support millions of families and represent a critical component of many African economies.
Digital Commerce Growth: African businesses increasingly serve international customers and source from global suppliers, requiring reliable cross-border payment infrastructure.
SME Expansion: Small and medium enterprises represent 90% of African businesses. As these companies expand across borders, demand for accessible international payment solutions grows exponentially.
The Current State: High Costs, Slow Speeds
Despite this massive market opportunity, Africa’s cross-border payments ecosystem faces significant challenges that create a real economic burden:
Transaction Costs: Cross-border payments in Africa average 7.4% to 8.3% in fees, far exceeding the G20 Roadmap target of 3% by 2027. Some corridors, like South Africa to Zimbabwe, see costs as high as 12.7%.
Settlement Delays: Traditional international payments can take 3-7 business days to settle, tying up working capital that businesses need for operations.
Limited Transparency: Businesses often lack visibility into payment status, which creates uncertainty and complicates cash flow management.
Regulatory Fragmentation: Africa’s 54 countries operate largely independent payment systems with limited interoperability, requiring businesses to navigate multiple regulatory frameworks.
Foreign Exchange Challenges: Currency liquidity issues result in an estimated $5 billion in annual losses, while reliance on offshore USD/EUR clearance increases transaction costs.
The Critical Challenges of Cross-border Payments in Africa
Understanding the specific obstacles facing African cross-border payments helps businesses make informed decisions about solutions:
1. Infrastructure Fragmentation
Unlike Europe’s SEPA system or North America’s ACH network, Africa lacks unified payment rails enabling seamless cross-border payments at reasonable costs.
Multiple Integrations Required: A business serving customers in Nigeria, Kenya, Ghana, and South Africa may need separate integrations with 4-10 different payment providers, each with different APIs, documentation, and requirements.
Currency Management Complexity: Managing 42+ currencies across the continent, each with distinct exchange rates, volatility profiles, and conversion costs, adds a a significant operational burden.
Limited Cross-border Rails: Most African countries require international payments to be routed through offshore intermediaries, adding costs and delays.
2. Regulatory Complexity
Each African country maintains unique central bank regulations, licensing requirements, KYC (Know Your Customer) standards, and compliance frameworks.
KYC Fragmentation: Differences in KYC regulations, some lax, some stringent, create additional hurdles for cross-border payments. There’s no minimum standard for data protection and privacy across African countries.
AML/CFT Requirements: Stringent Anti-Money Laundering and Combating the Financing of Terrorism requirements, while necessary for security, add complexity and cost to international payments.
Reporting Obligations: Varying reporting requirements across countries create administrative burdens for businesses managing cross-border payments in multiple markets.
3. Foreign Exchange Volatility and Liquidity
Currency challenges significantly impact cross-border payments in Africa:
Exchange Rate Fluctuations: Some African currencies experience 5-20% annual volatility against major currencies. Extended payment terms expose businesses to significant exchange rate risk.
Currency Pair Liquidity: Many African currency pairs have limited liquidity. For example, direct exchange between Ugandan shillings and Rwandan francs is constrained by limited demand for each currency in the other market.
Dependence on Reserve Currencies: Most African cross-border payments require conversion through USD or EUR intermediaries, which adds costs and exposes them to multiple exchange rate spreads.
4. Last-Mile Access Challenges
Even when cross-border payments reach destination countries, last-mile distribution presents obstacles:
Rural Access Limitations: Mobile money agents and cash-out points are scarce in rural areas, limiting beneficiaries’ ability to access funds from international payments.
Cash Dominance: Lack of confidence in local currencies and limited financial access drive reliance on cash, increasing costs and limiting digital adoption for cross-border payments.
Digital Literacy Gaps: Many users lack awareness of new cross-border payment solutions or the digital skills to use them effectively.
5. Slow Settlement and Limited Transparency
Traditional international payment processes lack the speed and visibility modern businesses require:
Multi-Day Processing: Settlement times of 3-7 days create cash flow gaps and working capital challenges for businesses dependent on timely cross-border payments.
Opaque Status Tracking: Limited visibility into payment status leaves businesses unsure whether international payments are being processed, delayed, or failed.
Reconciliation Complexity: Matching cross-border payments to invoices across multiple currencies and payment systems consumes significant time for the finance team.
Emerging Solutions Transforming Cross-border Payments
Despite these challenges, 2025 has brought significant progress in African cross-border payments through technological innovation and institutional initiatives:
1. Pan-African Payment and Settlement System (PAPSS)
Launched in 2022 by the African Export-Import Bank and African Union, PAPSS provides breakthrough infrastructure for cross-border payments in local African currencies.
Key Features:
- Enables instant, secure transactions in local African currencies
- Eliminates the need for intermediary foreign currencies (USD/EUR)
- Uses distributed ledger technology for real-time tracking
- Reduces transaction costs by up to 50%
- Shortens settlement times from days to seconds
Current Coverage: By early 2025, PAPSS enabled real-time cross-border payments across 17 countries, connecting 14 national switches and over 150 commercial banks.
Impact: PAPSS directly addresses the core challenges of African international payments by bypassing traditional correspondent banking and enabling direct currency connections.
2. Regional Payment Integration Initiatives
Beyond PAPSS, regional initiatives are improving cross-border payment efficiency:
East African Payment System (EAPS): The East African Community validated the Draft EAC Cross-Border Payment System Masterplan in March 2025, outlining 20 targeted initiatives to enhance the speed, security, and affordability of regional cross-border payments.
CIPS Integration: In November 2025, Standard Bank became the first African bank to directly participate in China’s Cross-border Interbank Payment System, enabling faster, cheaper RMB transactions for Africa-China international payments.
BRICS Pay Network: Emerging payment networks aim to settle cross-border payments directly in local currencies, avoiding USD/EUR routing.
3. Mobile Money Expansion
Mobile money platforms central to Africa’s payment transformation are extending into cross-border payments:
Transaction Growth: Mobile money transaction values in Africa reached $1.4 trillion in 2023, up 39% from $495 billion in 2020.
Cross-border Capabilities: Major mobile money platforms are building international payment features, enabling person-to-person and business remittances across borders.
Last-Mile Reach: Mobile money’s extensive agent networks provide crucial last-mile access for cross-border payment recipients, particularly in areas with limited banking infrastructure.
4. Fintech Payment Platforms
Modern fintech platforms are leveraging technology to address traditional cross-border payment challenges:
Unified API Access: Platforms provide a single API integration that connects multiple payment methods across various countries, dramatically reducing technical complexity.
Transparent Pricing: Fintech solutions often offer clearer pricing with fewer hidden fees compared to traditional banking channels.
Real-time Tracking: Modern platforms provide visibility into payment status, eliminating the “black box” of traditional international payments.
Faster Settlement: Some providers offer same-day or instant settlement for cross-border payments, dramatically improving cash flow compared to traditional T+3 to T+7 settlement.
5. Emerging Technologies
Several technological innovations are reshaping African cross-border payments:
ISO 20022 Migration: The migration to richer, more structured payment data enhances efficiency and interoperability of cross-border payment systems, enabling better tracking and reducing errors.
Central Bank Digital Currencies (CBDCs): Nigeria’s eNaira pioneered African CBDCs, while Ghana, South Africa, and Kenya have active projects. CBDCs could dramatically simplify international payment settlements.
Stablecoin Infrastructure: Companies are building networks that leverage stablecoins to bypass conventional banking channels, providing faster, more cost-effective cross-border payment solutions.
Blockchain and DLT: Distributed ledger technology enhances transparency through real-time tracking and anti-fraud protocols for international payments.
Practical Solutions for Businesses
Understanding challenges and solutions is important, but businesses need actionable strategies for improving their cross-border payments:
Selecting the Right Payment Provider
When evaluating cross-border payment solutions, businesses should assess:
Geographic Coverage: Does the provider operate in your key markets? Look for platforms with a strong presence in your specific trade corridors.
Currency Support: Verify support for all currencies you need, including major currencies and regional African currencies.
Fee Structure: Compare total costs including transaction fees, FX spreads, receiving fees, and any hidden charges. Calculate costs for your specific payment volumes and corridors.
Settlement Speed: Determine how quickly funds reach recipients. Same-day or T+1 settlement significantly improves cash flow compared to traditional T+3 to T+7.
Integration Capabilities: Assess how easily the solution integrates with your existing systems, including accounting software, ERP platforms, and business workflows.
Transparency and Tracking: Ensure real-time visibility into payment status and comprehensive reporting for all cross-border payments.
Regulatory Compliance: Verify the provider holds necessary licenses and maintains compliance in your operating jurisdictions.
Customer Support: Evaluate support availability, response times, and whether local support teams understand African market dynamics.
Optimizing Cross-border Payment Operations
Beyond selecting providers, businesses can optimize their international payment operations:
Multi-Currency Wallets: Hold balances in multiple currencies to make strategic decisions about when to convert based on exchange rates, reducing FX costs.
Payment Batching: Where possible, batch smaller payments to reduce per-transaction costs and administrative burden.
Automated Reconciliation: Implement automated systems to match cross-border payments to invoices, eliminating hours of manual finance work.
Hedging Strategies: For businesses with significant currency exposure, explore FX hedging options to mitigate exchange rate volatility risks.
Local Currency Settlement: When possible, use platforms enabling settlement in local currencies without USD/EUR intermediation, reducing costs and currency risk.
Duplo’s Approach to Cross-border Payments
At Duplo, we’ve built our cross-border payment infrastructure specifically for businesses operating across African and international markets.
Coverage: Send and receive money in over 160 countries and 80+ currencies, with particular strength in African corridors.
Transparent Pricing: Clear, upfront pricing with competitive FX rates and no hidden markups. Save up to 85% compared to traditional banking channels.
Fast Settlement: Same-day and T+1 settlement options improve cash flow compared to traditional multi-day processing.
Unified Platform: Manage local and international payments, expense tracking, and reconciliation through a single integrated dashboard.
Automated Workflows: Build approval processes and automated payment flows that integrate with your existing operations.
Complete Visibility: Real-time tracking, comprehensive reporting, and automated reconciliation for all cross-border payments.
Local Expertise: Team with a deep understanding of African market dynamics, regulatory requirements, and business culture.
The Role of Regulatory Frameworks
Successful cross-border payment transformation requires supportive regulatory frameworks:
Current Regulatory Initiatives
G20 Roadmap for Enhancing Cross-border Payments: The G20’s multi-year program aims to address high costs, slow speeds, limited access, and insufficient transparency through 19 building blocks. The 2025 target is to reduce remittance costs to 3%.
AfCFTA Payment Integration: The African Continental Free Trade Area is driving initiatives to harmonize payment regulations and build cross-border payment infrastructure to support intra-African trade.
National Fast Payment Systems: Individual countries are implementing domestic real-time payment systems that can serve as foundations for improved international payments.
Regulatory Challenges Requiring Attention
Interoperability Standards: Need for harmonized technical standards enabling different national payment systems to connect seamlessly for cross-border payments.
KYC Harmonization: Establishing minimum data protection and privacy standards across African countries would reduce friction in international payments.
Licensing Reciprocity: Enabling payment providers licensed in one African country to operate more easily in others would enhance competition and reduce costs.
Consumer Protection: Strengthening regulations protecting businesses and individuals in cross-border payments, including clear dispute resolution and liability frameworks.
Future Trends in African Cross-border Payments
Looking ahead, several trends will shape the evolution of African international payments:
Increased Digitalization
The shift from cash to digital cross-border payments will accelerate, driven by improved infrastructure, smartphone penetration, and digital literacy.
AI and Machine Learning Integration
Artificial intelligence will enhance cross-border payment operations by improving fraud detection, automating compliance checks, enabling predictive analytics for cash flow management, and optimizing payment routing across multiple rails.
Greater Regional Integration
Regional payment systems will become more interconnected, enabling easier cross-border payments within African regions before eventually connecting continents.
Embedded Finance Expansion
Cross-border payment capabilities will increasingly be embedded into business platforms like e-commerce marketplaces, supply chain management systems, and accounting software. Making international payments seamless parts of business workflows rather than separate processes.
Central Bank Digital Currency Adoption
As CBDCs mature, they could provide efficient infrastructure for cross-border payments, particularly for government payments, large B2B transactions, and formal remittances.
Climate-Conscious Payments
Growing focus on environmental impact may drive adoption of more energy-efficient cross-border payment technologies and routes.
The Path Forward
Africa’s cross-border payments landscape stands at a transformative moment; however, the challenges are real and significant. High costs, slow speeds, regulatory complexity, and infrastructure gaps create a genuine operational burden for businesses.
But the solutions are emerging. From PAPSS to regional integration initiatives, from mobile money expansion to modern fintech platforms, the infrastructure enabling efficient, affordable international payments across Africa is being built right now.
For businesses, the question isn’t whether to optimize cross-border payments; it’s how quickly to implement solutions that eliminate friction, reduce costs, and enable growth.
The companies that succeed in Africa’s rapidly integrating economy will be those that build modern payment infrastructure, enabling them to trade seamlessly across borders. Whether you’re an SME expanding into new African markets, an enterprise managing complex international supply chains, or a digital platform serving customers across the continent, your cross-border payment capabilities directly impact your competitiveness.
The future of African commerce is connected, digital, and increasingly borderless. The businesses that invest in robust international payment infrastructure today position themselves to capture opportunities in Africa’s trillion-dollar cross-border payments market.
At Duplo, we’re committed to building payment infrastructure that makes African business easier. Our platform simplifies cross-border payments, eliminates operational friction, and gives businesses the tools they need to compete globally.
👉Sign up today to see how Duplo can help your business scale across African and international markets.
