African payments company Onafriq has partnered with stablecoin infrastructure provider Privy in a deal aimed at speeding up cross-border payments and settlement for businesses across the continent.
The partnership will combine Onafriq’s extensive payments network with Privy’s digital asset technology to develop stablecoin-enabled services for banks, fintech companies, mobile money operators and other institutional partners.
In the first phase, the two companies will focus on cross-chain stablecoin transfers, treasury operations and settlement processes. The companies say the infrastructure could later support wider cross-border payment and liquidity services, subject to regulatory approval.
The deal comes as businesses continue to face delays and high operational costs when moving money between African markets.
Cross-border payments on the continent often involve several intermediaries, different currencies and lengthy settlement periods, which can limit access to working capital.
Onafriq believes stablecoins could help reduce some of these delays by allowing institutions to transfer value more efficiently while improving liquidity management.
“At Onafriq, we keep investing in technology that makes payments faster and more accessible,” Onafriq Group Chief Product and Innovation Officer Luke Kyohere stated.
“Privy gives us a building block for faster settlement and better liquidity management. As demand for digital asset services grows, our goal is to ensure Africa’s payment ecosystem benefits securely and in line with regulatory frameworks.”
Privy provides digital wallet infrastructure that allows businesses to introduce crypto and stablecoin services without exposing users to the technical complexities associated with blockchain technology.
Privy co-founder and Chief Executive Officer Henri Stern said the success of stablecoins in mainstream payments would depend on whether companies can build systems that are secure, scalable and easy to use.
“Stablecoins will play an increasingly important role in the future of global payments, but real-world adoption depends on infrastructure that is secure, scalable and simple to implement,” Stern stated.
The partnership is expected to support services such as stablecoin settlement, treasury management and liquidity solutions for institutional clients.
Onafriq operates in 43 African markets and connects more than one billion mobile money wallets and 500 million bank accounts.
The company offers cross-border collections and disbursements, card processing, agency banking and treasury services to banks, mobile network operators, fintechs, merchants and international organisations.
