Visa Slashes Cross-Border Fees by 80% with USDC in Africa and EMEA

Visa has made a significant advancement in cross-border payments by introducing USDC (USD Coin) stablecoin settlement across more than 20 new African and broader EMEA territories. This initiative is part of a strategic alliance with Yellow Card, Africa's leading licensed stablecoin payment partner. Through this collaboration, Visa is now settling transactions on the blockchain, directly competing with traditional systems like SWIFT and bank rails in cross-border commerce.

Traditionally, cross-border payments in Africa have been hindered by high fees, typically ranging from 6% to 10%, prolonged settlement cycles, and a scarcity of dollars. Visa's new USDC rails, facilitated by Yellow Card's technology, aim to reduce these costs by up to 80% and enable near-instant, 24/7 settlement, even on weekends and holidays. This means consumers and merchants can send and receive money in seconds, with improved on-chain visibility and better liquidity management.

Chris Maurice, CEO of Yellow Card, highlighted the partnership's ambition: “Together with Visa, we’re building a bridge between traditional finance and the future of money movement.” The collaboration gives Visa immediate access to Yellow Card’s established crypto corridors, which have processed over $6 billion in transactions since 2019, primarily through USDT and USDC.

Visa's rollout leverages its Visa Direct network, one of the world's largest digital payments networks, spanning over 190 countries. Selected issuers and acquirers in Central and Eastern Europe, the Middle East, and Africa can now directly settle USD cross-border transactions on the blockchain using USDC. This allows individuals and corporates to send and receive money with fewer intermediaries at lower costs and settle in real-time.

The African and EMEA regulatory landscape is diverse and rapidly evolving. While regions like Nigeria and South Africa are moving towards more open crypto policies, others currently have gray or restrictive strategies. Visa and Yellow Card are working closely with regulators to ensure compliance and avoid the pitfalls that have hindered previous crypto launches. Central to this relationship is modularity, allowing mass market financial technology giants like M-Pesa and Chipper Cash to utilize Visa’s USDC rails within their respective businesses. M-Pesa, with over 60 million customers, has already integrated crypto purchases with peer-to-peer platforms. Chipper Cash is testing stablecoin-to-cash on-ramps with MoneyGram and Stellar. If these players adopt Visa’s rails, the impact on remittance fees and financial inclusion could be revolutionary.

Visa's move is part of its broader strategy to position itself as the backbone for the next wave of payments. The company has already settled over $225 million in stablecoin volume since 2023 and is rolling out pilots with banks and fintechs in the Middle East and Europe. The next phase will see more local banks, mobile money operators, and fintechs linking to Visa’s on-chain rails, with further market launches planned for 2026. Regulatory clarity remains a challenge, but Visa's SVP for CEMEA, Godfrey Sullivan, believes that by 2025, every institution that moves money will need a stablecoin strategy.

As the race to capture the new rails intensifies, the focus is on which fintechs and markets will be the first to adopt these innovations—and which legacy players will innovate or risk being left behind. Visa's partnership with Yellow Card and the launch of USDC payments across Africa and EMEA mark a turning point for cross-border remittances and digital currency. With instant, low-cost stablecoin settlements, the future of money movement is being built today, and the world awaits to see who will be the next to get plugged in.