Written by: WSPN
1. Introduction
1.1 Africa's Digital Economy
With the rapid development of the global digital economy, Africa stands at a crossroads of transforming its economy and achieving sustainable development through digital means. Covering over 30 million square kilometers and with a population exceeding 1.4 billion by 2022, Africa is rich in natural resources. According to World Bank statistics, Africa's GDP was approximately $29.8 trillion in 2022, maintaining an annual growth rate above 3%. According to Endeavor's report, the digital economy in Africa was approximately $115 billion in size in 2022, accounting for 3.86% of GDP, and is expected to reach $712 billion by 2050. In contrast, Asia's digital economy accounted for over 30% of GDP in 2022. Africa's digital economy has enormous potential.
The digital economy encompasses various sectors such as digital finance, digital commerce, and digital education. Digital finance integrates traditional finance with digital technology, with up to 66% of Africa's population lacking bank accounts—people and businesses across all African countries face challenges in payments, loans, savings, and purchasing insurance. The number of fintech companies in Africa has surged in recent years. According to statistics, African fintech companies raised nearly $200 million in 2017, with the top 10 African fintech companies raising nearly $300 million in 2018, and total investments in 2019 exceeding $580 million for single investments above $5 million. The most popular sectors in Africa's digital finance are mobile payments (digital wallets), online lending, and online remittances. Financial inclusion is one of the biggest opportunities in Africa's digital industry, focusing on using digital technology to broadly solve financial service coverage issues.
Distribution of Major Fintech Companies in Africa (Data Source: Digital Africa Observatory, Briterbridges)
According to Statista, in 2024, the scale of mobile payments in Africa (transaction volume) is expected to exceed $195 billion, more than double that of 2020, maintaining a double-digit annual compound growth rate, and is projected to further grow to $314.8 billion by 2028. Over the past two years, many African countries have set historical highs in electronic payment scales. According to the Central Bank of Nigeria, the volume of mobile money transactions in Nigeria doubled in 2020, reaching approximately 800 million transactions; South Africa's data shows that online commerce grew by about 40% during 2020 and 2021. Digital payments are becoming an increasingly prevalent method of payment across the African continent. In 2023, 17% of consumers in Africa used digital payment services daily, and the proportion of consumers using digital payment services weekly reached 48%.
Africa's Digital Payment Market Size (Data Source: Statista)
Mobile money is currently the most significant and fastest-growing form of digital payment in Africa. According to the GSMA (The State Of The Industry Report On Mobile Money), in 2023, the number of registered mobile money accounts in Africa reached 856 million, accounting for 49% of the global total, with 136 million new accounts added, contributing to over 70% of the global growth. It has become the primary source of growth for mobile money worldwide. Currently, Africa has about 169 mobile money services, including M-PESA, Airtel Money, Orange Money, MTN Mobile Money, Ecocash, and Tigo Pesa, allowing users to deposit, transfer, and receive money using their phones, providing a convenient alternative to traditional banking, especially in areas with limited bank infrastructure. In addition to improving financial inclusion and access to other digital services, the adoption, use, and growth of mobile money have also driven macroeconomic growth in Africa. Mobile money has contributed over $150 billion to GDP growth in Sub-Saharan Africa, with a contribution rate of 3.7%. In East Africa, the contribution rate to GDP growth reaches 5.9%.
Contribution of Mobile Money to GDP in Different Regions (Data Source: GSMA)
Digital commerce, also known as e-commerce, faces challenges in Africa, such as insufficient infrastructure, late start, and imperfections. However, the large population base, high proportion of young people, and significant potential for improvement have attracted countless investors. According to Statista, the African e-commerce market is expected to reach $49.02 billion in online retail revenue by 2023, with an annual growth rate of nearly 14%. By 2027, the user base for Africa's e-commerce market could soar to 600 million, with a user penetration rate of 44.3%. This expansion brings various benefits, including economic growth, job opportunities, and improved access to goods and services for rural and remote areas.
The e-commerce industry in Africa is redefining traditional supply chains and business models. For example, Kenya's Twiga Foods procures products directly from farmers and efficiently delivers them to urban retailers, streamlining the agricultural value chain. Egypt's MaxAB is a platform that connects food and grocery retailers with suppliers in underserved areas. These innovations add diversity to the solutions in Africa's e-commerce space. The Pan-African Payment and Settlement System (PAPSS) serves as a payment solution that facilitates payment transactions across Africa without relying on banks outside the continent. With over ten countries and commercial banks adopting PAPSS, it has significantly boosted the growth of the e-commerce sector.
Additionally, the digital economy plays an important role in traditional sectors such as logistics, agriculture, education, energy, and transportation, driving economic and technological development while fostering greater inclusivity and innovation. For instance, Nigerian company Kobo360 and Kenyan company Lori Systems have introduced digital technologies into the traditional road transport market, improving overall process efficiency and reliability, and reducing truck empty running rates, leading to income growth for most drivers working with these platforms by over 50%. Previously, the lack of teachers, tuition fees, gender gaps, safety issues, and long distances to schools, along with poor smartphone penetration, have all been major constraints on education in Africa. Therefore, Kenyan edtech company Eneza Education chose to provide services to feature phone users through USSD and SMS. Their official information shows that the number of users has grown to 4.9 million, with messages sent daily exceeding 1 million, and the cumulative number of answered questions exceeding 10 million, with total inquiries also surpassing 1 million.
1.2 Stablecoins
1.2.1 The Stablecoin Market in Africa
The adoption of cryptocurrency in Africa is experiencing rapid growth. According to Chainalysis, Nigeria ranks second in the global cryptocurrency adoption index, following India, and surpassing countries like the United States and other Western nations. Stablecoins dominate cryptocurrency adoption. From July 2022 to June 2023, cryptocurrency transfers in Sub-Saharan Africa reached $117.1 billion, with stablecoins accounting for over 50% of all asset categories (significantly higher than BTC, ETH, etc.).
2023 Monthly Cryptocurrency Transaction Volume in Sub-Saharan African Countries by Asset Classification Chart (Data Source: Chainalysis)
Taking Nigeria, Africa's largest cryptocurrency economy, as an example, in 2022, the Central Bank of Nigeria announced plans to redesign its fiat currency (NAIRA) and issue new banknotes to combat inflation and exert more control over the money supply. Unfortunately, the resulting cash shortage caused significant pressure on the unbanked population in the country. In early 2023, Nigeria's uncertain economic environment encouraged more citizens to seek financial alternatives, namely increasing their holdings of cryptocurrencies (mainly stablecoins).
Cryptocurrency Trading Volume in Nigeria (Data Source: Chainalysis)
1.2.2 Stablecoin Applications in Africa
Remittances
Over the past few decades, the flow of funds into the African continent has continued to grow, but citizens still face the burden of excessively high remittance costs. According to statistics from the United Nations Development Programme, in the second quarter of 2022, the cost of remitting $200 to Africa reached as high as 7.8%, far exceeding the global average cost of 4%-6.4%. Using cryptocurrencies for remittances can significantly lower costs (even to one-twentieth of traditional remittance methods), as demonstrated by Nigeria's SureRemit, which charges a fee of 0%-2% for remittances. Moreover, using stablecoins for remittances can also avoid potential losses due to asset price fluctuations. Major African trading platforms like Paxful, BuyCoins, Luno, and Quidax have seen substantial demand for stablecoin transactions for remittance purposes in recent times.
Remittance Costs (Data Source: UNDP)
Cross-Border Trade
Using stablecoins for payments in cross-border trade can achieve low fees and fast transaction speeds. In traditional cross-border trade, banks play a crucial role, and most trade in Africa is dominated by small and medium-sized enterprises. As regulations tighten, risk control, KYC, and exchange rate risks become factors, bank-supported cross-border trade activities are gradually declining. Additionally, the underdeveloped financial infrastructure in Africa generally relies on international banks, limiting the development of trade activities. However, using stablecoins combined with blockchain's smart contracts can effectively solve this issue.
Financial Inclusion
According to statistics from the United Nations Development Programme, by 2021, about 60% of the population over 15 years old in Sub-Saharan Africa did not have a bank account (global average is 26%), and the proportion of women without a bank account is 12% higher than that of men. In terms of financial infrastructure density, Africa averages only 4.5 commercial banks per 100,000 people (global average is 10.8).
Many cryptocurrency service providers integrate resources from various industries to offer more comprehensive services to those lacking basic financial services. For example, Nigeria's SureRemit not only provides users with remittance functions but also has over 1,000 merchant partners in its global network. Utilizing blockchain payment technology, users can purchase goods, pay tuition fees, utility bills, donate, and more, addressing the challenges faced by the unbanked population.
Statistical data shows that with the increasing usage of mobile phones in Africa, the ratio of adults with mobile money accounts is negatively correlated with those who have never had a financial account. This indicates that countries with a higher proportion of mobile money account holders exhibit higher financial inclusion.
Cryptocurrency Improves Financial Inclusion (Data Source: UNDP)
Value Preservation and Inflation Resistance
Many African countries have long been troubled by high inflation (with double-digit annual inflation rates), which is significantly higher than the global average. The currencies of these countries face continuous and significant depreciation. The situation further worsened after the COVID-19 pandemic. In 2021, due to supply chain crises and resource shortages, the overall inflation rate in Sub-Saharan Africa rose by 3%. Using stablecoins pegged to the US dollar as asset reserves can significantly alleviate this problem. Many mainstream centralized exchanges offer stablecoin savings services to African users.
Inflation Rates in Some Sub-Saharan African Countries (Data Source: UNDP)
1.2.3 Major Stablecoins in Africa
The main stablecoins used in African countries include the following:
Tether (USDT): Currently the largest stablecoin by market capitalization (over $110 billion), and also the most widely used stablecoin in Africa and globally. According to Christoper Maurice, the founder of Yellow Card, a major cryptocurrency exchange in Africa, USDT on Tron is one of the most popular cryptocurrencies among users across the continent. Many Africans prefer to use dollar-pegged stablecoins (such as USDT) on low-cost networks like Tron to avoid domestic inflation.
USD Coin (USDC): USDC is currently the second largest dollar-pegged stablecoin by market capitalization, issued by Circle. Like USDT, USDC is actively expanding into the African market. In January 2024, the cryptocurrency exchange Coinbase partnered with Yellow Card to expand its product usage to 20 new African countries, focusing on increasing the adoption of the stablecoin USDC. This move will help millions of users access USDC and conduct fast, reliable, and cheaper transactions on the decentralized and open L2 Base.
WSPN USD (WUSD): WUSD is a dollar-pegged stablecoin issued by stablecoin infrastructure company WSPN, aimed at providing users with safer, more efficient, and transparent payment solutions through the establishment of a global compliance system and a new payment ecosystem. In July 2024, WSPN reached a strategic partnership with CanzaFinance, a pioneer fintech company in Africa. WUSD integrates with the CanzaFinance ecosystem to provide users with convenient financial services, allowing them to conduct various financial transactions using WUSD, including remittances, payments, and savings while enjoying smooth exchange experiences with African fiat currencies, accelerating the implementation of real-world assets (RWA) and decentralized finance (DeFi) solutions in emerging markets like Africa.
PayPal USD (PYUSD): PYUSD is a dollar-pegged stablecoin issued by PayPal, the largest third-party payment platform globally.
Celo USD (CUSD): CUSD is a dollar-pegged stablecoin issued by Celo, which differs from the above three stablecoins in that its collateral primarily consists of cryptocurrencies, including BTC, ETH, and Celo. In 2023, Celo announced a partnership with Opera to launch the stablecoin wallet MiniPay, initially promoted in Nigeria. This wallet is integrated with Opera's mobile web browser, Opera Mini, aimed at helping African mobile internet users utilize Web3 products. Opera's mobile payment institution OPAY is also a major mobile payment provider in Africa, currently boasting over 35 million registered users.
1.2.4 Regional Differences
Africa's digital economy shows significant regional differences and disparities. In 2023, the total number of mobile money accounts across the African continent reached 856 million, with a transaction volume of $919 billion. East and West Africa lead in the development of mobile money, with both regions accounting for 85% of active accounts and 90.8% of transaction volumes in Africa. Early on, East African countries had better foundations, while West African countries have seen the fastest development over the past decade.
2023 Overview of Mobile Money in Africa (Data Source: GSMA)
2013-2023 Regional Share of Active Mobile Money Accounts in Africa (Data Source: GSMA)
West Africa: In West African countries such as Nigeria, Ghana, and Senegal, the cryptocurrency economy is developing rapidly. According to a Statista survey in 2020, 32% of Nigerians have held or used cryptocurrencies, the highest ratio globally. Nigeria is also the country receiving the most cryptocurrency in Africa in 2023 (over $56 billion). On one hand, the naira and Ghana's cedi have continuously depreciated in recent years, with high domestic inflation prompting citizens to seek safer, value-retaining dollar-pegged stablecoins; on the other hand, Nigeria is the most populous and economically significant country in Africa, accounting for 38% of remittance flow in Sub-Saharan Africa in 2023, resulting in a high demand for remittances and payments.
East Africa: Countries like Kenya, Tanzania, and Mauritius in East Africa are also active in cryptocurrency. M-Pesa has become Kenya's largest mobile payment platform, enabling ordinary people to access cross-border payments, short-term loans, salary payments, bill payments, and wealth management services via mobile phones and networks. This has significantly improved the financial experience for those underserved by traditional financial services, indirectly enhancing the overall livelihood and economic conditions in Kenya.
Southern Africa: In recent years, the cryptocurrency industry has developed rapidly in Southern Africa, particularly in South Africa, where more than 80% of the population has bank accounts. The financial literacy of the general public is relatively high, leading to investment in the cryptocurrency and stablecoin sectors. A study by cryptocurrency exchange Kucoin indicates that approximately 22% of the adult population in South Africa (7.6 million people) are cryptocurrency investors, with many preferring to use digital assets as their preferred savings method for stable returns.
1.2.5 Growth Prospects
The rapid growth of e-commerce, widespread application of digital services, revolutionary development of mobile payments, and the uneven development of African countries will drive stablecoins to play a significant role in Africa's future digital economy and overall financial system.
In recent years, the African e-commerce market has grown at an astonishing rate, with the entire market expected to reach $939.8 billion by 2030. Local platforms such as Jumia (the first African tech company to be listed on the NYSE) and Konga have emerged, while international giants like Amazon are also actively entering the African market. This rapid growth is primarily due to the huge consumption potential brought about by Africa's demographic dividend—currently one of the fastest-growing regions in the world, with a population exceeding 1.2 billion, projected to reach 2.5 billion by 2050. The large population base presents significant consumption potential, especially with a high proportion of young people, gradually increasing internet penetration rates, and shifting consumption habits towards online shopping, laying a solid foundation for e-commerce development. In addition, governments and private enterprises in various African countries have invested heavily in internet infrastructure development in recent years, continuously improving the coverage of fiber optic networks and mobile communication networks. The penetration rate of smartphones is also rapidly increasing. By 2025, the number of smartphone users in Africa is expected to reach 675 million, providing the necessary technological support for the development of e-commerce platforms. The success of mobile payment platforms like Kenya's M-Pesa has promoted the widespread adoption of cashless payments. With the continuous improvement of payment systems, the convenience and security of users' online shopping experiences have been ensured, further promoting the growth of e-commerce.
Currently, the number of mobile network users in Africa has reached 1.22 billion, with 676 million smartphone users, accounting for 55.32%. The main mobile payment platforms include M-PESA, Airtel Money, Orange Money, MTN Mobile Money, etc., which are widely popular in Africa, providing convenient financial services and addressing the challenges faced by the unbanked population. It is expected that by 2028, the value of Africa's digital payment market will further grow to $314.8 billion.
Other digital services, such as online education and telemedicine, are also experiencing rapid growth. According to a report from Expert Market Research, the market size of online education in Africa is expected to reach $20.35 billion by 2028, with a compound annual growth rate of 39.2% from 2023 to 2028. This growth is primarily driven by an increase in demand for online education and training solutions, increased mobile device usage, and government initiatives promoting digital education. The African healthcare market is expected to grow at an annual rate of 8.3%, with the market size reaching $259 billion by 2025. The rapid rise of the digital health market, including mobile health applications, telemedicine services, and electronic health record systems, provides new solutions for improving the accessibility and quality of healthcare services.
In addition to the rapid development of the digital economy, current economic development in Africa faces issues such as high inflation rates, currency volatility, low coverage of banking services, and weak financial infrastructure. Stablecoins offer a relatively stable medium of exchange to help African people and businesses cope with these economic challenges.
2. How Stablecoins Support Africa's Digital Economy
Stablecoins are designed to maintain a relatively stable value. The most widely circulated stablecoins, such as USDT and USDC, are pegged to the US dollar. As the largest and most important currency in global trade, the dollar maintains a relatively stable value compared to other major currencies. Therefore, using stablecoins like the dollar can effectively hedge against the volatility risks of local currencies in certain African countries, where most currencies have been in a long-term depreciation trend against the dollar due to unstable monetary policies and high inflation.
In traditional cross-border trade, banks play essential roles by providing a range of services, including payment settlements, trade financing, risk management, and foreign exchange trading. Small and medium-sized enterprises dominate economic activities and cross-border trade in African countries. Trade financing is vital for import and export businesses. Bank-mediated trade financing has averaged 40% of total trade in Africa over the past decade. However, due to stricter KYC, anti-money laundering, and risk-based capital regulatory requirements, bank-supported trade financing is steadily declining, disproportionately reducing support for SMEs. Other factors, such as liquidity constraints, currency risks, credit risks, and time and monetary costs, also add to the challenges of trade financing in Africa. Using stablecoins can significantly address these issues, completing payments in seconds through blockchain technology and facilitating faster movement of funds between supply chains, buyers, shipping companies, and sellers. SMEs engaged in cross-border trade can obtain funds more quickly from banks and other financial institutions to ensure their liquidity. Stablecoins like USDT and USDC have reportedly started being used in international trade by SMEs in Africa. Additionally, decentralized finance (DeFi) systems based on stablecoins have been able to offer relatively mature financial products and services, such as credit and deposits. This underutilized trade finance potential can promote greater participation of SMEs in trade opportunities both within Africa and in sub-regions such as the Economic Community of West African States (ECOWAS), Southern African Development Community (SADC), and Intergovernmental Authority on Development (IGAD).
Integrating stablecoin applications with current mobile payment platforms can improve transaction efficiency and reduce costs. The use of stablecoins significantly lowers payment costs and time, which is a huge attraction for users. It also enhances financial inclusion. Stablecoins and the decentralized financial systems (DeFi) built upon them provide access to a wide range of financial services for the unbanked population.
The low-cost and fast transaction characteristics of stablecoins can further improve various aspects of digital services, enhancing convenience and attracting a larger user base. In micropayment scenarios, the use of stablecoins can significantly reduce the costs associated with micropayments, making small transactions more economical. This is particularly important for the African market, where traditional payment methods are costly, and fast transaction speeds can achieve immediate or near-instant payments, which is especially crucial for micropayment scenarios, as users prefer a seamless payment process. In the subscription sector, stablecoins can simplify the payment process for subscription services, allowing users to set up automatic payments once without needing to operate manually each time. This is particularly useful for African users, who may be more accustomed to mobile device operations. Additionally, due to the relatively stable value of stablecoins, they reduce the risk of payment failures caused by currency fluctuations, ensuring that subscription services can be continuously provided. Furthermore, stablecoins can be used for various digital services such as in-game purchases, online education, and health services, providing a smooth payment experience and encouraging African developers and service providers to explore new business models, such as micropayment-based profit models. This also contributes to promoting economic integration within the African region, enhancing trade and investment.
3. Challenges Facing Stablecoin Adoption
The current large-scale adoption of stablecoins in Africa still faces several challenges, including government regulation, compliance, infrastructure, public concerns, and trust.
Regulation and Compliance:
Currently, most African countries are still exploring cryptocurrency regulation and lack clear legal definitions of assets. Government concerns mainly stem from financial stability risks, such as how to properly manage the relationship between non-local currency-pegged stablecoins and fiat currencies. For instance, the Central Bank of Nigeria worries that widespread adoption of stablecoins may undermine its control over monetary policy, leading to capital outflows and further devaluing the naira. Some stablecoins are pegged to assets like the US dollar, and if the reserve assets of these stablecoins are not properly managed, it could trigger potential financial panic and bring instability to the financial system, especially when stablecoins are widely used for transactions or savings. Furthermore, the anonymity associated with certain cryptocurrencies could facilitate criminal activities, potentially being used for money laundering or funding illegal transactions, impacting financial stability and security. Clearly, a well-defined regulatory framework for stablecoins and corresponding legal safeguards are crucial for the development of stablecoins.
Current Status of Cryptocurrency Regulation in Sub-Saharan African Countries (Data Source: UNDP)
Limited Infrastructure:
Mobile networks (4G/5G) and the internet are crucial infrastructures supporting the digital economy. Currently, Africa's 4G network coverage is only 50%, far below the global average. In some areas, only 2G networks are available. Except for relatively developed economies like South Africa, the internet penetration rate in Africa is only around 30%, which limits the development of the digital economy and the stablecoin ecosystem to some extent.
Global Mobile Network Coverage (Data Source: International Telecommunication Union)
Proportion of Internet Users in the Population (Data Source: World Bank)
Social Concerns and Education:
The anonymity associated with cryptocurrency transactions often raises concerns about criminal activities. Social engineering scams, phishing attacks, and fraudulent investment schemes targeting stablecoins can significantly impact newcomers. Particularly, those living in rural areas or with limited exposure to technology may not be very familiar with stablecoins or cryptocurrencies. This lack of awareness may hinder the widespread adoption of stablecoins and make them susceptible to fraud or misinformation. Understanding how stablecoins work, their risks and benefits, and how to use them safely requires a certain degree of financial literacy, necessitating governments or relevant institutions to increase awareness and conduct targeted basic financial education. Furthermore, even stablecoins pegged to fiat currencies may experience some degree of price fluctuations. Such fluctuations can raise concerns among potential users, particularly for those unfamiliar with the crypto market or with limited financial resources.
4. Case Studies
OnAfriq (MFS Africa)
OnAfriq (formerly MFS Africa) is Africa's largest cross-border payment platform, established in 2009, dedicated to promoting the development of Africa's digital economy through digital payment solutions and financial services. OnAfriq has branches in major economies such as Nigeria, South Africa, and Ghana, with core businesses including digital wallets, cross-border payment solutions, stablecoin services, and fintech products.
By 2024, OnAfriq's user base exceeds 500 million, covering over 40 African countries. Individual users utilize OnAfriq for daily transactions, cross-border remittances, and small payments, while corporate users leverage its cross-border payment solutions and merchant collection services, especially for transactions with overseas suppliers and customers. OnAfriq supports various stablecoins, including USDC, USDT, DAI, and EURC, and has launched AfriqCoin, a stablecoin pegged to the US dollar, specifically for cross-border payments, with transaction fees as low as 0.5% to 1%.
OnAfriq collaborates with international financial institutions and local banks, including Visa, Mastercard, Ecobank, and Stanbic Bank, and partners with stablecoin provider Circle to expand its operations in Africa by leveraging the stability and wide acceptance of USDC. The OnAfriq platform supports USDC payments, transfers, and storage, and offers DeFi products such as high-yield deposits, loans, and asset management.
OnAfriq has significantly enhanced financial inclusion in Africa, with digital wallet users exceeding 500 million, most of whom previously had no bank account. OnAfriq has provided financial education and training to over 1 million individuals, helping users improve their financial literacy. Its digital payment platform and stablecoins (such as AfriqCoin) have enhanced cross-border payment efficiency, reduced costs, and promoted trade both regionally and internationally, with processing times shortened to 2 minutes. OnAfriq also provides payment gateway services for local e-commerce and merchants, supporting online transactions and the development of digital markets. In the future, OnAfriq plans to launch more innovative products, such as digital insurance and decentralized finance loans, continuing to drive the digital transformation of Africa's economy.
AZA Finance
AZA Finance, founded in 2013, is a leading fintech company in the African market, focusing on providing cross-border payment and foreign exchange solutions. The company optimizes cross-border payment processes through its innovative technology platform, enhancing liquidity between Africa and other regions globally. As of 2024, AZA Finance's cross-border payment transfer platform has processed over 15 million transactions, totaling $9 billion, serving more than 1.5 million users across over 183 countries.
AZA Finance's cross-border payment solutions support the implementation of the African Continental Free Trade Area (AfCFTA). By streamlining cross-border payment processes and lowering transaction costs, AZA Finance provides strong support for trade activities among AfCFTA member countries, thus promoting the integration of Africa's regional economy.
AZA Finance supports USDC and USDT on its payment platform. In 2023, the trading volume of stablecoins on the AZA Finance platform accounted for 30% of the total trading volume, reflecting strong market demand and acceptance for stablecoins.
WSPN
WSPN (Worldwide Stablecoin Payment Network) is a global digital payment company dedicated to providing transparent, fast, and efficient digital payment solutions through the latest distributed ledger technology (DLT), driving the development of digital payments and financial inclusion in the future. The company successfully raised $30 million in seed funding, with investors including renowned institutions like Foresight Venture and Folius Ventures.
In the global digital payment landscape, WSPN has successfully opened the African market through collaboration with the innovative AA wallet StableWallet. This partnership lays a solid foundation for WSPN's market penetration and financial inclusion goals in Africa, marking an important milestone in its globalization strategy.
In this collaboration, WSPN and StableWallet attracted a large number of new user registrations and usage of WUSD through diverse promotional activities. These users not only experience the convenient payment features of WSPN's stablecoin but also enjoy generous WUSD rewards.
Additionally, WSPN will further enhance user experience and promote the adoption of WUSD in the African market through innovative methods such as partnerships with more projects and building a Telegram miniapp community. Wallets based on account abstraction technology make WSPN's WUSD easier to use while providing users with a seamless cross-chain payment experience.
Through this collaboration, WSPN's success in the African market is reflected not only in the rapid growth of user numbers but also in its provision of financial inclusion to the local market through stablecoin technology. In the future, WSPN will continue to drive digital payment innovation in Africa and global markets through collaboration with global partners, building a more transparent, efficient, and user-friendly digital payment ecosystem.
Future Outlook
The successful experiences of OnAfriq, AZA Finance, and WSPN showcase how stablecoins can improve financial services in Africa and drive economic development. For other industries and tech companies in Africa, key entry points include the following:
1. Focus on enhancing financial infrastructure
Develop local blockchain technology infrastructure to enhance transaction processing capacity and security to support more stablecoin transactions. Meanwhile, promote interconnectivity between financial institutions, enhance cooperation between banks and non-bank financial institutions, and create a broader payment network. Promote the use of digital wallets among the public, supporting the storage and transfer of stablecoins, and further introduce on-chain financial infrastructures such as DeFi to improve convenience of use.
2. Promoting the Improvement of Policy and Regulatory Frameworks
For instance, while AZA Finance supports stablecoin payments, it strictly adheres to both international and local financial regulations to ensure compliant operations. It encourages governments to formulate regulations governing the use and trading of stablecoins, providing legal operational space to prevent illegal activities. At the same time, it promotes regional cooperation to develop common regulatory standards and advance the legalization and standardization of cross-border stablecoin payments.
3. Enhancing Public and Corporate Awareness and Acceptance of Stablecoins
OnAfriq has improved public awareness and acceptance of stablecoins through extensive user education and promotional activities. Through online and offline educational events, media promotion, and financial literacy programs, they help the public understand the advantages and usage of stablecoins. Collaborating with local businesses promotes their acceptance and usage of stablecoins as a payment option, increasing the usage rate of stablecoins in commercial transactions. Encouraging the use of stablecoins in various everyday transactions, such as bill payments, purchasing goods and services, enhances their prevalence in public life.
4. Strengthen cooperation and establish strong partnerships
OnAfriq has partnered with global stablecoin issuer Circle to enhance its competitiveness in the global payment market. Collaborating with stablecoin issuers like Circle and Tether to introduce more stablecoin options expands application scenarios. Partnerships with blockchain and fintech companies enhance technology levels and optimize payment and transaction systems. Establishing relationships with international financial institutions promotes the use of stablecoins and expands the global payment network.