- Ripple has formed a strategic alliance with Onafriq.
- The collaboration targets the transformation of cross-border transactions and addresses challenges in outdated payment systems in Africa.
- Africa’s fintech sector is rapidly growing, presenting a $2.7 trillion opportunity.
Ripple, the renowned blockchain-based payment protocol, has forged a strategic alliance with Onafriq. This collaboration aims to revolutionize cross-border transactions and address the challenges associated with outdated payment systems prevalent across the continent.
Ripple’s ambitious venture aligns with Africa’s surging fintech sector, anticipated to offer a substantial $2.7 trillion opportunity.
Africa, a continent widely acknowledged as a major participant in the global economic scene, is seeing impressive growth in the fintech sector, with a focus on payments in particular.
According to recent data, Africa’s financial services industry is expected to generate an astonishing $230 billion in revenue over the next two years.
The increasing use of fintech, the expanding population of mobile phone users, and the growing interest in digital banking are the main drivers of this upsurge.
Ripple aids in cross-border payments
The Ripple-Onafriq partnership zeroes in on common issues plaguing cross-border money transfers in Africa, including exorbitant fees, sluggish settlement times, and limited access to traditional bank branches.
Onafriq, with its extensive network connecting hundreds of millions of mobile wallets across most of Africa and operating crucial payment corridors, plays a pivotal role in facilitating financial inclusion.
The evolving collaboration between Ripple and Onafriq holds the promise of delivering tangible benefits to the entire African region. Ripple’s strategic vision for the potential $2.7 trillion market aligns seamlessly with the continent’s rapid economic growth and increasing relevance on the global stage.
Notably, Nigeria, where a substantial 73% of adults own mobile phones but credit card usage remains low, presents a significant market gap for the financial services industry to address, further underscoring the strategic importance of Ripple’s collaboration with Onafriq.
