Merchant remittances across Africa

The global financial landscape is witnessing a fascinating evolution, with discussions around blockchain-based ecosystems and established payment giants exploring innovative ways to handle transactions. Recent news, such as the potential collaboration between Sam Altman’s World Network and Visa for stablecoin payments, offers a glimpse into a future where digital currencies seamlessly integrate with traditional financial infrastructure. For African Payment Solutions, this signals a significant opportunity to revolutionise banking and payments for consumers across the continent by embracing the merging of fiat and crypto.

Imagine a scenario where your digital wallet functions as a “mini bank account”, allowing you to hold both traditional fiat currencies and stablecoins. This vision, hinted at by the developments surrounding World Network, could become a reality in Africa, offering a powerful new paradigm for financial services.

What does this merging of fiat and crypto mean for African consumers?

• Enhanced Financial Inclusion: Millions of unbanked and underbanked individuals across Africa could gain access to a broader range of financial services through stablecoin-enabled wallets. These wallets, potentially linked to card functionalities, could bypass the need for traditional bank accounts for everyday transactions.
• Seamless Cross-Border Payments: The ability to send and receive money across borders efficiently and affordably is a critical need in Africa. Stablecoins, designed to maintain a stable value, can facilitate faster and cheaper cross-border transactions compared to traditional methods, reducing reliance on correspondent banking networks.
• Lower Transaction Costs: Traditional payment systems often involve multiple intermediaries, leading to higher transaction fees. By leveraging blockchain technology and stablecoins, transaction costs could be significantly reduced, benefiting both consumers and merchants.
• Greater Flexibility and Choice: Consumers could have more control over their funds and the methods they use to pay and receive money. The integration of fiat and crypto within a single wallet would offer flexibility in choosing the most suitable currency for different transactions.
• Access to a Wider Range of Fintech Applications: As seen with World Network’s announcement of a World Chat application with crypto-based money transfer capabilities, the convergence of crypto and traditional finance can unlock new and innovative fintech applications, catering to the specific needs of African consumers.

The potential collaboration between a blockchain-based network like World Network and a major card network like Visa to enable stablecoin-based payments at thousands of merchants highlights the direction in which the global payments ecosystem is moving. For African Payment Solutions, understanding and leveraging these trends is crucial. By exploring partnerships with crypto card facilitators and embracing the development of interoperable wallets that can handle both fiat and stablecoins, we can pave the way for a more inclusive, efficient, and affordable financial future for African consumers.

The journey of merging fiat and crypto in Africa is just beginning, but the potential benefits are immense. By embracing innovation and collaboration, African Payment Solutions can be at the forefront of this transformative wave, empowering individuals and businesses across the continent with a new era of banking and payments.

 Exciting news for multinational eCommerce merchants trading in Africa!  

The Pan-African Payment and Settlement System (PAPSS) is transforming cross-border payments across the continent.

Here’s what this means for your business:

• Simplified Payments: Say goodbye to the historical complexities and costs associated with foreign exchange for cross-border transactions. PAPSS will simplify the entire process.
• Instant/Near-Instant Payments: Experience faster transactions with instant or near-instant transfers of funds between you and your customers, regardless of their location in Africa.
• Local Currency Transactions: Payments will be made in local currencies, eliminating the hassle and costs of currency conversion for both you and your customers.
• Reduced Costs: PAPSS will reduce the costs associated with cross-border payments, leading to operational efficiencies and increased profitability.
• Improved Working Capital: Benefit from payment certainty and faster transaction times, leading to improved working capital management.
• Access to New Markets: PAPSS can help unlock economic opportunities by making cross-border trade easier and more efficient, facilitating access to new African markets.
• Growing Network: PAPSS is bringing together a growing network of banks, payment service providers, and other financial intermediaries across Africa, expanding reach and payment options.

PAPSS is a game-changer for cross-border trade in Africa, offering a secure and efficient financial market infrastructure. By connecting African banks and payment service providers, it will enable instant and secure payments in local currencies. This is a significant step towards accelerating Africa’s trade and creating a more interconnected and prosperous continent.

Contact us to learn more about how your multinational eCommerce business can benefit from interconnected payment services!

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