Visa has announced the rollout of a USDC settlement system across more than 20 new African and EMEA countries in collaboration with Yellow Card, a leading stablecoin payment provider in Africa.
Changes in the Cross-Border Payment System
Traditionally, Africa's cross-border payments have been hampered by high fees ranging from 6–10%, protracted settlement cycles, and dollar scarcity. The new Visa USDC system, implemented via Yellow Card technology, aims to reduce costs by up to 80% and ensure near-instant 24/7 settlement. This means users can send and receive money in seconds, gaining visibility and improved liquidity management.
How the System Works: Visa Direct and Stablecoins
The Visa rollout is based on its Visa Direct network, one of the world's largest digital payments infrastructures, spanning over 190 countries. Selected issuers and acquirers in Central and Eastern Europe, the Middle East, and Africa can now settle USD cross-border transactions directly on the blockchain using USDC. This allows individuals and corporations to send and receive money with fewer intermediaries at lower costs and settle in real-time.
Regulatory Aspects and Future Prospects
The regulatory landscape in Africa and EMEA is diverse and rapidly changing. Nigeria and South Africa are moving toward open crypto policies, while others maintain gray or restrictive approaches. Visa and Yellow Card are working closely with regulators, implementing compliance checks on their blockchain rails to avoid pitfalls from previous crypto ventures. A key aspect of this partnership is allowing fintech giants like M-Pesa and Chipper Cash to utilize Visa's USDC infrastructure within their respective businesses.
Visa's partnership with Yellow Card and the launch of USDC across Africa and EMEA marks a significant turning point for cross-border remittances and digital currencies. Instant, low-cost stablecoin settlements are paving the way for the future of financial transactions.
