Yellow Card plans to roll out stablecoin payments with Visa in Africa, addressing limited access to U.S. dollars and boosting digital finance adoption.
Yellow Card Financial, an African stablecoin payments provider, has partnered with Visa, the credit card giant, to expedite the adoption of digital dollars throughout the continent.
This partnership underscores the increasing convergence between conventional payment networks and cryptocurrency solutions.
Bloomberg reported on Thursday that the two organizations have agreed to encourage the utilization of stablecoins for cross-border payments in emerging markets where Yellow Card conducts business.
The stablecoin transactions with Visa will be introduced in at least one African country by Yellow Card this year, with further rollouts anticipated in 2026.
Chris Maurice, the co-founder and CEO of Yellow Card, stated that the collaboration will concentrate on improving liquidity management, facilitating more cost-effective money transfers, and enhancing treasury operations.
According to a report by Chainalysis, stablecoin adoption is expanding at a more accelerated pace in Sub-Saharan Africa despite a modest increase in overall cryptocurrency usage in 2024. This trend is primarily driven by numerous countries’ ongoing foreign exchange crises and limited access to US currencies.
Yellow Card, the first licensed stablecoin payments operator in Africa, also serves as a cryptocurrency exchange. The company has processed over $6 billion in transactions and operates in 20 countries, as indicated on its website, following its introduction in Nigeria in 2019.
Maurice stated that “all major payment companies are investigating ways to enter this space” about stablecoins.
The adoption of stablecoins in Africa is increasing.
Stablecoins pegged to the dollar, including USDt and USDC, have experienced substantial growth in Africa. Significant growth in retail crypto adoption has been observed in Nigeria and Ethiopia, two of Africa’s largest economies.
“Stablecoins now constitute approximately 43% of the region’s total transaction volume,” stated Chainalysis in its report, which examined crypto utilization from July 2023 to June 2024.
The USDC issuer Circle has recognized Africa as a critical market for digital currencies. In April, the company collaborated with Onafriq, an African payment provider, to test USDC settlements in 40 countries.
