The African Payment Problem: Deep-Rooted Obstacles

The African payment problem is not about access, as many believe, but about incompatibility and lack of connections between systems. Despite advances in mobile money infrastructure, only 12% of intra-African transactions are processed without intermediaries from the US or Europe.

Current Challenges of Payment Infrastructure

Many believe the main issue is the lack of access to banking services and limited card usage. However, the Central Bank of Nigeria emphasized that infrastructure resilience and cybersecurity are paramount. The problem lies not with the technologies but with the architecture: African countries have built the necessary components, but integration with the global system remains challenging.

The Role of Stablecoins

The demand for stablecoins is rapidly growing. In 2024-2025, the volume of transactions using them increased by 52% compared to the previous period. Nonetheless, stablecoins solve the transfer problem but do not automatically resolve the settlement issue. Nigerian companies can receive USDC, but they still need naira for local expenses.

End-to-End Solutions for Enterprises

To effectively serve African markets, three tasks must be addressed simultaneously:

• Unified Liquidity. A system is needed where fiat and stablecoins can coexist without constant conversion decisions.
• Real-time Conversion with Transparent Pricing. Firms gain a competitive edge by being able to lock in currency rates at any time.
• Last Mile Delivery. This requires integration with local payment systems, such as NIBSS in Nigeria or M-Pesa in Kenya.

PhotonPay's Strategy

At PhotonPay, we integrate all three levels into a single infrastructure. Photon Wallet offers a unified layer of assets with fiat currencies and stablecoins. Convert allows for asset exchanges with transparent pricing. Movement completes the process by delivering funds through local networks.

Final Thought

The future of the financial sector lies not in the opposition of stablecoins to fiat but in their collaborative functioning. An infrastructure is needed that allows capital to move globally and arrive locally. This addresses how businesses in countries like Nigeria, Kenya, and South Africa can realize their potential in the global market.