Visa has signed an agreement with Yellow Card to accelerate the adoption of stablecoins in Africa, underscoring the growing synergy between traditional payment networks and cryptocurrency solutions.
Visa and Yellow Card Collaboration
Visa and Yellow Card Financial, an African stablecoin payments provider, announced a partnership to promote the use of stablecoins for cross-border transactions. Yellow Card will initiate stablecoin transactions with Visa in at least one African country this year, with additional rollouts expected in 2026. According to Chris Maurice, co-founder and CEO of Yellow Card, the collaboration will focus on enhancing treasury operations and reducing the cost of money transfers.
Stablecoin Adoption Trends in Africa
According to a Chainalysis report, there was a modest increase in overall cryptocurrency usage in Sub-Saharan Africa in 2024, but stablecoin adoption is accelerating more rapidly. This trend is largely driven by limited access to US dollars and ongoing foreign exchange crises in certain countries. Dollar-pegged stablecoins like USDt and USDC have gained traction, with significant growth in retail crypto adoption in Nigeria and Ethiopia. Chainalysis reported that stablecoins now account for approximately 43% of the region's total transaction volume.
Market Prospects
Circle, the issuer of USDC, has also identified Africa as a vital market for digital dollars. In April, the company partnered with African payment provider Onafriq to pilot USDC settlements across 40 countries. This collaboration emphasizes the growing interest in stablecoins from major payment companies.
The partnership between Visa and Yellow Card, alongside the growing usage of stablecoins in Africa, indicates a potential shift in the region's financial landscape, which could lead to broader adoption of digital currencies.
