Digital Transformation Revolutionizes Cross-Border Payments in Africa

Cross-border payments in Africa are poised for modernization as regulatory friction persists and digital infrastructure advances. The next stage of cross-border payments will require more than just speed and transparency, with industry leaders calling for payment infrastructure that can seamlessly connect across platforms and ecosystems. Citi and Swift are leading the charge, with a focus on security, end-to-end traceability, and transparency of costs. The shift towards ISO 20022 messaging standard will enhance efficiency and interoperability of cross-border payments systems.

Cross-border payments in Africa are on the cusp of significant transformation, driven by the need to address regulatory friction and leverage advanced digital infrastructure. The next phase of cross-border payments will require more than just speed and transparency; it will demand a robust, interconnected payment infrastructure that can seamlessly connect across platforms and ecosystems. Industry leaders such as Citi and Swift are at the forefront of this evolution, focusing on security, end-to-end traceability, and cost transparency. The shift towards the ISO 20022 messaging standard is poised to enhance the efficiency and interoperability of cross-border payment systems.

One of the key initiatives in this space is the exploration of stablecoin settlement infrastructure by Davis Commodities (Nasdaq: DTCK) [1]. Davis Commodities aims to modernize agricultural trading by reducing settlement friction in emerging markets. The company is developing a stablecoin settlement system that could handle up to $200-250 million in annual settlement volume by 2027, offering significant reductions in settlement time and transaction costs. This initiative aligns with Davis Commodities' broader strategy to become a hybrid model that combines commodity expertise with financial infrastructure services.

Another significant development is OpenWay's expansion into Francophone Africa to power next-generation digital payments [2]. OpenWay, the global leader behind the award-winning Way4 digital payment platform, has signed a long-term technology partnership with a leading tier-1 bank in Morocco. This partnership will enable banks and fintechs across Morocco and Tunisia to adopt Way4, a best-in-class digital payment solution recognized by Gartner and Datos. OpenWay's expansion underscores the growing demand for advanced digital payment solutions that can seamlessly scale operations across regions and continents.

The shift towards ISO 20022 messaging standard is another crucial development. This standard aims to enhance the efficiency and interoperability of cross-border payment systems by providing a consistent and standardized format for messaging. The adoption of ISO 20022 is expected to streamline processes, reduce errors, and lower costs, thereby making cross-border payments more efficient and transparent.

In conclusion, the modernization of cross-border payments in Africa is being driven by a combination of regulatory advancements, technological innovations, and strategic partnerships. As industry leaders like Davis Commodities and OpenWay continue to explore and implement new solutions, the future of cross-border payments in Africa appears promising, poised for greater efficiency, security, and interoperability.

References:
[1] https://www.stocktitan.net/news/DTCK/davis-commodities-assesses-stablecoin-settlement-and-cfd-platform-to-0wkidbca4b1e.html
[2] https://techafricanews.com/2025/08/07/openway-expands-into-francophone-africa-to-power-next-gen-digital-payments/