Onafriq, a South African-based payments gateway, has partnered with Circle, the issuer of the USDC stablecoin, in a move aimed at improving cross-border payments and digital financial services on the continent.
The partnership will see the introduction of USDC-based settlement into Onafriq’s network, which spans over 500 wallets and 200 million bank accounts across more than 40 African countries.
Currently, more than 80% of payments between African countries are processed via correspondent banks outside the continent and settled in foreign currencies such as the US dollar or euro.
This system results in around US$5 billion in annual transaction fees and is widely seen as an obstacle to regional economic integration.
By using USDC and blockchain infrastructure, Onafriq and Circle aim to reduce reliance on external intermediaries and cut transaction costs.
Dare Okoudjou, founder and CEO of Onafriq, said:
“Our partnership with Circle is an important milestone, reinforcing Onafriq’s commitment to harnessing technology to remove complexity from cross-border payments. By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs, and strengthen trust.”
Miriam Kiwan, Vice President for the Middle East and Africa at Circle, said:
“The emerging markets that Onafriq serves hold tremendous potential for digital asset innovation, particularly in the adoption of stablecoins for cross-border payments. Our partnership with Onafriq aligns with Circle’s mission to promote financial inclusion and improve efficiency in areas where traditional banking has often been costly and inaccessible.”
The collaboration reflects broader efforts to modernise Africa’s financial infrastructure, with a focus on developing systems that are both more efficient and locally controlled, while working within existing regulatory frameworks.
Featured image credit: Onafriq
