Key takeaways:
- Visa, M-Pesa Africa and Onafriq have launched a pilot using stablecoins to power cross-border mobile money transactions
- The Democratic Republic of Congo has been chosen as the first market for the trial
- Visa says the model could expand to other African markets if the pilot proves successful
Kenyan fintech leader, M-Pesa Africa, has begun piloting stablecoin-powered cross-border payments in partnership with Visa and Onafriq, aiming to speed up and cut the cost of international mobile money transfers.
The three companies launched the pilot in the Democratic Republic of Congo, the first market chosen for the trial. The project will test how blockchain-based stablecoins can settle cross-border mobile money transactions faster and more cheaply than conventional banking channels.
Through the partnership, M-Pesa wallet top-ups are settled using stablecoins behind the scenes via Visa Pay, allowing money to move across borders more quickly while customers continue using their mobile wallets exactly as before.
The approach reflects a wider shift among payment providers toward blockchain technology to address longstanding problems in cross-border transfers, including high fees, slow settlement and limited access to formal financial infrastructure in parts of Africa.
Godfrey Sullivan, Visa’s senior vice president and head of solutions, said mobile money has transformed domestic payments across Africa but cross-border remittances remain a persistent challenge. “Mobile money has achieved tremendous success and widespread adoption within domestic markets. However, challenges around cross-border remittances remain unresolved,” Sullivan said, adding that stablecoins are increasingly likely to be adopted by banks, fintechs and mobile network operators to close that gap.
Sullivan said the pilot demonstrates how stablecoins can strengthen payment infrastructure without altering how customers actually use their wallets, since the settlement layer operates invisibly in the background.
Why the DRC was picked first
According to Sullivan, the DRC was selected as the pilot market partly because of its growing role in digital financial innovation and its heavy reliance on mobile money for everyday transactions and remittances. Much of the country’s cross-border commerce, particularly with neighboring markets, currently moves through informal channels or costly formal banking routes, making it a useful test case for a faster settlement model.
If the pilot delivers the results Visa and its partners expect, the companies said the model could expand to other African markets, offering an alternative approach to digital remittances and supporting broader financial inclusion for individuals and small businesses that depend on mobile money.
The trial adds to a broader wave of interest from global payment companies and African fintechs in blockchain-powered infrastructure as a way to modernize international money transfers. Stablecoins, digital currencies typically pegged to assets like the U.S. dollar, have gained traction globally in recent years as a settlement tool for cross-border payments, offering faster transaction times than traditional correspondent banking networks.
Onafriq, formerly known as MFS Africa, operates one of the continent’s largest mobile money interoperability networks, connecting mobile wallets across dozens of African countries to enable transfers between different providers and markets.