Mastercard Partners With African Fintech to Expand Crypto Remittances

Mastercard has taken another step in cementing its role in the digital payments ecosystem by partnering with a leading African fintech to expand crypto-based remittance services across the continent. The move comes amid surging demand for cheaper, faster cross-border payments, especially for the millions of Africans who rely on remittances from family members abroad.

The collaboration aims to address one of the most pressing issues in African finance: the high cost of sending and receiving money internationally. According to the World Bank, Sub-Saharan Africa remains the most expensive region to send remittances, with average fees often exceeding 8% of the amount transferred. Crypto-based remittance solutions promise to reduce those costs dramatically, while also improving transaction speed and transparency.

Through the partnership, Mastercard will leverage its vast global payments network and compliance infrastructure, while the African fintech—whose name has not yet been disclosed publicly—will provide localized expertise, user-friendly applications, and integration with mobile money platforms widely used across the continent. Together, they plan to enable users to convert cryptocurrencies such as USDC or Bitcoin into local currencies seamlessly, making it possible for recipients to access funds directly through mobile wallets or bank accounts.

One of the key focuses of the project is ensuring regulatory compliance and security. While crypto adoption is rapidly growing across Africa, with countries like Nigeria, Kenya, and South Africa leading the charge, regulators have been cautious in approving large-scale use. Mastercard, with its track record of working closely with governments and regulators worldwide, is expected to help smooth those concerns by embedding strong know-your-customer (KYC) and anti-money laundering (AML) safeguards into the new system.

Industry experts suggest that the partnership could be transformative. Remittances to Africa topped $54 billion in 2023, and the figure continues to rise as more Africans move abroad for work. However, a large percentage of that money is lost to fees and inefficiencies. By combining crypto technology with Mastercard’s infrastructure, the new service could reshape the remittance market by providing a low-cost, fast, and secure alternative to traditional money transfer operators.

Mastercard has been steadily expanding its footprint in the digital assets space. Over the past few years, it has launched crypto debit cards, partnered with exchanges, and invested in blockchain startups. This latest initiative highlights the company’s recognition of Africa as one of the fastest-growing fintech regions in the world, where mobile-first solutions dominate and millions of people remain underbanked.

For the African fintech involved, the partnership is a major milestone that could position it as a leader in bridging traditional finance with the crypto economy. The firm plans to pilot the service in a handful of markets before expanding across multiple countries in the coming year.

If successful, the collaboration could set a precedent for how crypto and traditional financial institutions can work together to solve long-standing challenges in emerging markets, making remittances not just cheaper, but more inclusive and accessible for millions.