The Real Problem of Payments in Africa: Interoperability

Africa faces a challenge in the payment space that is not due to a lack of digital adoption. The real problem is the interoperability of local financial systems with global ones. Although African businesses can receive global payment instructions quickly, disbursement into local accounts remains slow or even fails.

Beyond Simple Adoption

The dominant discourse around payments in Africa often focuses on limited banking access. However, at the Digital Payments Expo in Lagos, the Central Bank of Nigeria highlighted a new focus on infrastructure resilience, cybersecurity, and AI-driven financial services. Africa is already building an advanced layer beyond basic digital adoption.

The issue is that only 12% of intra-African transactions are fully processed on the continent, according to IMF data. The majority goes through the U.S. and Europe, creating an architecture problem rather than a technology one.

The Limited Role of Stablecoins

Stablecoins have gained prominence in Africa, with a reported 52% increase in on-chain value between 2024 and 2025 in Sub-Saharan Africa. Nigeria leads this advance, with 95% of respondents preferring to receive international payments in stable currencies. This is a response to the sharp devaluation of the naira.

Still, stablecoins do not solve the arrival problem. Nigerian providers receiving USDC need to convert it to naira for local expenses. The last crucial leg occurs in local settlement networks, not on the blockchain.

The Three Necessary Layers

To operate effectively in African markets, businesses need:

• Unified Liquidity: An integrated asset layer where fiat currencies and stablecoins coexist, without the need for constant conversion decisions.
• Real-time Conversion with Transparent Pricing: Exchange rate volatility structurally affects businesses.
• Last-Mile Local Delivery: Direct integration with local platforms like NIBSS in Nigeria or M-Pesa in Kenya is crucial.

These layers, present in systems like PhotonPay, offer a cohesive solution that covers the final critical financial leg for businesses.

The Architecture We Are Advancing Toward

PhotonPay is betting on an infrastructure where these layers work together rather than separately. Its platform offers unified and transparent asset management, along with local integration to ensure effective fund delivery.

Final Reflection

The debate should not be stablecoins versus fiat but how both can operate together seamlessly. The financial architecture of the future must allow a flow of digital capital where opportunity truly translates into local economic growth.