U.Today - is making strategic moves to tap into Africa's burgeoning fintech market, eyeing a substantial $2.7 trillion opportunity. This vision has led to a recent collaboration between Ripple and Onafriq, aiming to streamline cross-border transactions and overcome challenges associated with outdated payment systems on the continent.
Africa, acknowledged as a significant player in global business, is witnessing remarkable growth in its fintech sector, particularly in payments.
Recent analysis suggests that financial services revenue in Africa is poised to reach $230 billion in the next two years, driven by increased fintech adoption, a growing number of mobile phone users and the rising interest in .
's recent partnership with Onafriq specifically addresses common issues in cross-border money transfers, such as high fees, slow settlement times and limited access to traditional bank branches.
Onafriq, connecting hundreds of millions mobile wallets across most of Africa and operating payment corridors, is a key player in facilitating financial inclusion.
The evolving partnership between companies has the potential to bring tangible benefits to the entire African region, aligning with Ripple's strategic vision on the promising $2.7 trillion market.
As Africa solidifies its position in the global economy, financial institutions have an opportunity to explore new revenue streams by participating in the region's rapid growth.
Leading countries like Nigeria, Kenya, Ghana and Egypt are at the forefront of the payments revolution, reports Ripple. Notably, in Nigeria, where 73% of adults own mobile phones but credit card usage remains low, a significant market gap exists for the financial services industry to address.