Fintech companies Onafriq and Circle formed a strategic agreement this week to transform cross-border payments and digital financial services.
Onafriq is a pan-African payments company that enables interoperable cross-border and domestic digital payments, whereas Circle is a global financial technology firm that assists businesses in leveraging the power of digital currencies and public blockchains for payments, commerce, and financial applications.
According to the two companies, their partnership is a key step towards compliantly tapping into stablecoins and blockchain technology to strengthen Onafriq's payment network, putting it at the forefront of the digital payment revolution for real-world financial applications.
The two went on to say that this collaboration is also significant step towards a more inclusive and self-sufficient pan-African financial system.
“It signals a new phase in the modernisation of African payment rails - one where blockchain technology is applied responsibly, in lockstep with regulators and financial institutions, to build a faster, more efficient, and economically empowering future for the continent,” the two said in a joint statement.
They stated: “Currently, over 80 percent of intra-African payments are routed through correspondent banks outside the continent and settled in foreign currencies such as the US dollar or Euro. This results in a staggering US$5 billion in transaction fees annually and undermines economic integration efforts.”
Onafriq and Circle are now collaborating to shift the paradigm by integrating USDC-powered settlement solutions into Onafriq's network, which connects over 500 wallets and 200 million bank accounts across more than 40 African markets.
USD Coin (USDC) is a cryptocurrency stablecoin created by Circle. It is tied to the US dollar.
Dare Okoudjou, Onafriq's founder and CEO, 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.
“This collaboration underscores our vision to democratise access to payments and drive financial inclusion across the globe. We’re not just envisioning the future of payments - we’re actively building it.”
Miriam Kiwan, vice president, Middle East & Africa at Circle, added: “The emerging markets that Onafriq serves holds tremendous potential for digital asset innovation, particularly in the adoption of stablecoins for cross-border payments.
"Together, we aim to transform how money moves across borders, offering secure and transparent digital payment rails that enhance economic empowerment and connectivity.”
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