Yellow Card, the largest and first licensed Stablecoin on/off ramp on the African continent, has partnered with payments giant Visa, to drive innovation in cross-border payments and financial infrastructure across emerging markets.
This partnership will focus on exploring Stablecoin use cases to streamline treasury operations, enhance liquidity management, and enable faster, more cost-effective cross-border money movement.
Speaking on the partnership, Co-Founder and CEO of Yellow Card Chris Maurice said,
“Traditional payment companies continue to question not ‘if’ they need a stablecoin strategy, but how quickly they can deploy one. We are thrilled to partner with Visa to help realize the potential of stablecoins technology in emerging economies.”
Also commenting, Godfrey Sullivan, Senior Vice President and Head of Product and Solution for CEMEA, Visa, said,
“We’re excited to team up with Yellow Card to enable faster and more accessible digital payments. We believe that every institution that moves money will need a stablecoin strategy. As more players in the payments ecosystem explore this powerful new technology, Visa stands ready to help our partners navigate the transformation, bringing the scale, trust, and innovation needed to help build the next generation of global payments.”
Stablecoins have emerged as a transformative force in the financial industry, bridging the gap between traditional finance and the rapidly evolving world of digital assets.
Unlike volatile cryptocurrencies such as Bitcoin and Ethereum, stablecoins are designed to maintain a stable value by being pegged to traditional assets like fiat currencies (USD, EUR, etc.), commodities (gold, silver), or other financial instruments.
These digital currencies pegged to stable assets like the U.S. dollar, have seen significant adoption in Africa due to the continent’s economic challenges, including volatile local currencies, high inflation, and limited access to traditional banking. They account for 43-50% of Sub-Saharan Africa’s crypto transaction volume, surpassing Bitcoin and Ethereum. Nigeria alone saw over $30 billion in stablecoin transactions from June 2022 to July 2023.
It is worth noting that in many African countries, cross-border payments are slow and expensive, and accessing US dollars can be difficult. Stablecoins offer a potential workaround by allowing users to move dollar-equivalent value quickly and without going through correspondent banks.
Notably, Stablecoins are poised to dominate Africa’s crypto landscape, with experts predicting they could surpass traditional banking in daily transactions within a decade.
In Nigeria, Kenya, and Ghana, individuals and SMEs use stablecoins for savings and trade without needing bank accounts.
Visa’s collaboration with YellowCard, aims to scale stablecoin adoption for remittances and trade.
Operating in over 20 African countries, Yellow Card provides secure, compliant, and accessible stablecoin solutions for consumers, businesses, and developers, reinforcing its role as a vital financial gateway in emerging markets.
Yellow Card, which is licensed in more than 20 African countries, will help Visa test how stablecoins can be practically applied in real business settings. Visa on the other hand, Visa will integrate stablecoins into its existing infrastructure like Visa Direct, a product that supports real-time global transfers.
The Yellow Card and Visa partnership is a significant step toward mainstreaming stablecoin innovation in emerging markets. By combining Visa’s global infrastructure with Yellow Card’s regional expertise, the collaboration could reduce transaction costs, enhance financial inclusion, and drive economic growth, particularly in Africa.
The initiative positions Africa as a leader in the global stablecoin ecosystem, with potential ripple effects for other emerging markets.
