Mastercard and Yellow Card are betting on stablecoins to lower Africa’s cost of receiving remittances, which is currently seen as the most expensive in the world.

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The two companies recently announced a strategic partnership to accelerate stablecoin-enabled payment innovation across Eastern Europe, the Middle East, and Africa (EEMEA), with Nigeria among the key focus markets.

Speaking in an interview with Nairametrics after the announcement, Vice President of Global Operations and Managing Director for Yellow Card Nigeria, Lasbery Oludimu, said Africa’s remittance ecosystem continues to suffer from settlement delays, foreign exchange friction, and liquidity constraints,

These challenges, she said, have made cross-border payments difficult for businesses and consumers alike.

What Oludimu is saying 

According to her, stablecoins could significantly reduce these inefficiencies by enabling faster, cheaper, and more reliable transactions.

Oludimu cited World Bank data showing that the average cost of sending $200 to Sub-Saharan Africa stood at 8.78% in the first quarter of 2025, well above the global average of 6.49%.

  • “Africa remains the most expensive region in the world to receive remittances,” she said.

She explained that many Nigerian businesses involved in imports, international supplier payments, and regional trade still face long delays and uncertainty when moving funds across borders.

  • “The biggest issues are cost, speed, settlement delays, access to liquidity, and FX friction. These are not abstract problems,” Oludimu stated.

According to her, stablecoins are uniquely positioned to solve these problems because they allow value to move instantly and at significantly lower costs.

“Stablecoins move at internet speeds, cost fractions of a cent to send, and operate 24/7, reducing settlement times from days to seconds,” she said.

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Oludimu said the partnership with Mastercard represents a major shift in how stablecoins are perceived globally.

  • “For Nigeria specifically, the practical change is that stablecoins can move from being seen mainly as a crypto product to becoming part of the broader payment infrastructure,” she explained.

She noted that the collaboration aims to build interoperable payment solutions connecting traditional banking systems with blockchain-powered infrastructure across Nigeria, Ghana, Kenya, South Africa, and the UAE.

According to her, Mastercard’s broader stablecoin strategy, including its planned acquisition of BVNK, demonstrates growing confidence among global payment networks in blockchain-based settlement systems.

Oludimu noted that remittances remain a major financial lifeline for Africa, with more than $104 billion flowing into the continent in 2024, citing World Bank data referenced by RemitSCOPE.

Despite the scale of these inflows, she argued that African consumers and businesses still rely heavily on outdated correspondent banking systems that were not designed for modern payment demands.

  • “The question is simple: if we have technology that can reduce cost, improve settlement speed, and still meet compliance expectations, why should African consumers and businesses continue to rely only on systems that were not built for today’s needs?” she said.

Regulatory clarity critical for adoption

While interest in stablecoin-based settlement systems continues to grow, Oludimu stressed that regulatory clarity remains essential for broader institutional adoption in Nigeria.

According to her, compliance in stablecoin operations includes customer verification, transaction monitoring, sanctions screening, anti-money laundering controls, and continuous engagement with regulators.

  • “You cannot scale responsibly without strong compliance foundations and constant dialogue with regulators,” she said.

She added that unclear regulations could drive activity into less transparent channels while slowing innovation from compliant operators.

  • “The better path is clear rules, licensed operators, strong compliance requirements, and open engagement between industry and regulators,” he stated.

Businesses showing growing interest

Oludimu disclosed that Nigerian businesses are increasingly exploring blockchain-based settlement solutions, particularly firms involved in cross-border trade, imports, exports, treasury management, and remote workforce payments.

According to her, about 30% of Yellow Card’s customers already use stablecoin infrastructure for operational activities such as treasury management, supplier payments, and paying contractors.

  • “Many of these businesses are not interested in crypto as speculation. They are interested in solving real operational problems,” he said.

She added that conversations around stablecoin adoption have matured significantly in recent years, with businesses now focusing more on compliance, risk management, and integration with existing banking systems.

What you should know 

Amid the growing embrace of stablecoins in the country, the Africa Stablecoin Network (ASN) recently called for a unified regulatory framework to unlock the benefits of stablecoins for the Nigerian economy.

The Network, in a recent statement, said it also supported the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso’s position on the need to modernise cross-border payments.

ASN said it shared the CBN’s vision for faster, cheaper and more inclusive payment systems, noting that stablecoins and digital payment infrastructure can play a major role in achieving those objectives when supported by clear and coordinated regulation.