Stablecoins Emerge as African Businesses’ Answer to Cross-Border Payment Delays

African businesses are increasingly turning to dollar-backed stablecoins to cut payment delays, reduce costs and bypass chronic foreign exchange shortages, according to Dickson Nsofor, chief executive of pan-African payments infrastructure provider Kora.

Speaking in interviews and at industry events in 2026, Nsofor said the shift has been under way for about five years, driven by the need for faster, cheaper and more reliable cross-border settlements. “Businesses increasingly see stablecoins as a way to resolve payment problems that have complicated trade across African markets,” he said, noting that stablecoins now function less as speculative assets and more as essential enterprise infrastructure.

For many African firms, traditional cross-border payments remain slow and expensive. International transfers can take several days to settle, while fees and foreign exchange spreads erode already thin margins. Access to US dollars is often constrained, especially in markets with tight FX controls, making it difficult to pay suppliers or receive payments from overseas customers.

Stablecoins such as Tether (USDT) and USD Coin (USDC) offer a dollar-denominated settlement layer that moves on blockchain rails, enabling near-instant transfers at a fraction of the cost of correspondent banking. Nsofor noted that remittance and cross-border transaction costs in Africa average 8–8.8 per cent, well above the global average of 6.49 per cent, and that blockchain-based settlement can slash these costs dramatically while reducing settlement times to seconds.

In late September 2026, Kora launched One Rail, a product that integrates stablecoin payments into its existing pan-African payments infrastructure. Through One Rail, merchants in Kora’s network can collect, hold, convert and settle funds in USDT and USDC alongside local currencies, using the same tools and dashboards they already use for fiat payments.

The service is designed to abstract away blockchain complexity for businesses. Instead of managing wallets and private keys directly, companies can access stablecoin functionality through familiar payment interfaces, with Kora handling the underlying on-chain settlement and conversion. Initially supporting USDT and USDC, the platform plans to add other major USD-backed stablecoins as demand and regulatory conditions allow.

Nsofor emphasised that African businesses are not adopting stablecoins primarily for investment or trading, but as an operational tool to manage currency volatility and payment friction. Multinational corporations and local enterprises alike are using stablecoins to preserve value, settle international invoices faster and reduce reliance on traditional banking channels that are often slow and costly.

“Instead of relying on multiple correspondent banking relationships, businesses can move value faster, at a lower cost, and with far greater efficiency,” said Chuckwuma Ukegbu, Kora’s global head of sales, speaking at the Nigeria Stablecoin Summit in August 2026. He described a flow where stablecoins act as the settlement layer between the Nigerian naira and other African currencies, making cross-border transfers “as quick as sending a text message.”

While the business case for stablecoins is strong, Nsofor acknowledged that regulatory clarity and issuer risk remain key considerations. African regulators are still shaping frameworks for digital assets and payment stablecoins, and businesses must navigate differing rules across jurisdictions. Kora’s approach is to work within existing regulations, partner with licensed entities and provide compliance tooling so that merchants can use stablecoins without running afoul of local laws.

Infrastructure also matters. Stablecoin adoption depends on reliable internet access, digital literacy and integration with existing accounting and treasury systems. By embedding stablecoin rails into a broader payments platform, Kora aims to lower these barriers and make digital dollar settlement accessible to a wider range of businesses, from large exporters to smaller merchants.

If the trend continues, stablecoins could become a core component of Africa’s cross-border payments architecture. They offer a pragmatic response to long-standing challenges: high remittance costs, slow settlements, limited dollar liquidity and volatile local currencies. For policymakers, the rise of stablecoins underscores the need to balance innovation with consumer protection, anti-money laundering safeguards and financial stability.

For African businesses, the message from players like Kora is clear: stablecoins are no longer a niche experiment but a practical tool to make cross-border commerce faster, cheaper and more predictable. As infrastructure matures and regulations evolve, their role in everyday trade and treasury management is likely to expand.