High Transfer Costs Fueled Interest in Stablecoins
Businesses operating in Africa face high cross-border payment costs that have spurred interest in alternative digital payment tools.
Updated on Oct. 13, 2026 in Financial Services
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Mauritius central bank Governor Priscilla Muthoora Thakoor recently identified risks stablecoins pose to monetary sovereignty and financial stability. These concerns arise as businesses grapple with high costs that have hindered cross-border economic integration.
Why it matters
Persistent obstacles in cross-border payments have driven interest in stablecoins as a tool for movement of funds. Operators must weigh these emerging digital options against established, albeit costly, correspondent-bank networks.
Sending $200 to Sub-Saharan Africa cost an average of 8.37% in Q2 2024, significantly higher than the 6.65% worldwide average. This environment services 835 million registered mobile-money accounts across the region.
The players
Priscilla Muthoora Thakoor
Governor of the central bank of Mauritius who has raised concerns regarding the impact of digital assets on financial stability.
The details
Cross-border transfers within Africa currently often rely on correspondent-bank networks located outside the continent, adding friction and expense. New regional initiatives like the Pan-African Payment and Settlement System, the SADC real-time settlement network, and the COMESA regional settlement platform aim to reduce this dependence on intermediary currencies. These systems seek to achieve G20 goals of reducing average retail-payment costs to 1% by the end of 2027.
Timeline
Q2 2024: Average cost of $200 transfers to Sub-Saharan Africa was recorded.
2024: 835 million mobile-money accounts were registered in Sub-Saharan Africa.
End of 2027: Target deadline for G20 retail payment cost goals.
Market Landscape
Regional payment initiatives currently seek to improve liquidity by reducing reliance on offshore banking, following the targets set by the G20 retail-payment cost reduction framework. These efforts mark a shift toward integrated settlement platforms to replace costly correspondent-bank networks.
Operators should anticipate a transition toward regional payment systems as they emerge to lower transaction costs below the current 8.37% average. Monitor these platforms for potential integration into existing procurement and payroll workflows to improve margin efficiency.
The takeaway
The high cost of moving capital across African corridors is forcing a shift toward new digital settlement infrastructures. Business owners should track the rollout of regional settlement platforms to identify upcoming opportunities to reduce international transaction fees.
Further reading
For more on the industry trends, see our coverage of Financial Services.
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Do you trust digital stablecoins to provide more financial security than traditional banking systems?
