Rethinking the Buzz Around Cross-Border Payments

Cross-border payments are one of the most talked-about opportunities in global finance. In 2024 alone, money that moved across borders totaled a staggering $194.8 trillion. For fintech, it’s a goldmine—and for many, the natural path has been to build tools to serve global freelancers, digital nomads, and diaspora communities sending money back home.

But while global money movement continues to evolve, a less flashy—but equally critical—need persists across the African continent: . Despite the physical proximity of many African countries, moving money across their borders is often more complex than sending it from London to Lagos.

Nnenna Nkata, a Nigerian who studied in Ghana and later the UK, experienced these inefficiencies firsthand. What began as a personal frustration eventually led her to co-found Monirates, a payments infrastructure startup tackling one of Africa’s toughest challenges: seamless money movement within the continent.

As a student in Ghana in the early 2010s, Nkata struggled to receive funds from Nigeria. Digital options were either limited or unreliable. At one point, she resorted to carrying ₦150,000 (roughly $750 at the time) in cash across the border just to pay tuition.

“It wasn’t just difficult—it was dangerous,” she recalled. “You felt like you were smuggling gold.”

Ecobank’s ATM network provided some early relief, but that too was undone by tightening Central Bank regulations in Nigeria, which began placing limits—and eventually outright blocks—on international card withdrawals.

Mobile money in Ghana wasn’t a viable solution either. Designed for small everyday payments, it couldn't handle the large transfers often needed for rent or school fees. “You couldn’t even open a bank account as a Nigerian student in Ghana,” Nkata noted.

From these pain points emerged the concept for Monirates. Initially designed as a peer-to-peer tool, it quickly pivoted into something more ambitious: building foundational rails for intra-African finance.

“We realised escrow wasn’t scalable. We needed infrastructure,” Nkata said. “So we built it from scratch—every single line of code.”

The company moved away from consumer tools and leaned into infrastructure-as-a-service, providing the technology backbone for businesses looking to transfer funds across Africa quickly and efficiently.

But scaling wasn’t simple. Unlike in Europe or North America, where unified currencies and harmonized regulations ease cross-border transactions, Africa presents a complex map: 42 currencies, dozens of regulators, and fragmented financial systems.

“In Ghana alone, to operate legally, you must incorporate locally and have a Ghanaian board member,” Nkata explained. “Each market is like launching a new company.”

Monirates wasn’t interested in doing the easy part. While many fintechs focus on collections, they often stop short of solving conversion and settlement. But without those steps, the value proposition falls apart.

“You can collect from a customer in Uganda, sure. But how do you convert that into naira? And how long does it take to settle?” she asked. Settlement times could stretch to five days or more. Add FX fees and transaction charges of up to 3%, and the economics become untenable.

That’s why Monirates opted to build a full stack: from collection to conversion and payout. The goal?

Today, Monirates is positioning itself as the payment engine for African trade, especially for small and medium-sized businesses (SMEs) that often get left behind. While individual users still use the platform, business clients now drive the majority of transaction volume.

“Businesses move more money,” Nkata said. “And they demand more reliability.”

One such client is Brydge, a pan-African trade company that uses Monirates to facilitate seamless cross-border payments across its supply chain. The collaboration allows Brydge to focus on logistics while Monirates handles the financial plumbing.

To improve liquidity and expand reach, Monirates is integrating stablecoins like USDC and USDT into its system. These digital currencies allow for instant transfers while bypassing weak or unstable local banking systems. Once received, funds are settled in local currency.

“Stablecoin is the quickest and easiest bridge right now,” Nkata said. “Especially in markets where we don’t yet have full liquidity.”

Fraud prevention is another key area of investment. The system monitors over 15 fraud signals to protect both users and the broader ecosystem. For Monirates, compliance isn’t just a requirement—it’s the foundation for scaling responsibly.

Intra-African trade cannot flourish without reliable payment infrastructure. That’s the simple truth Monirates is betting on. The company’s future is intertwined with the African Continental Free Trade Area (AfCFTA), the Pan-African Payment and Settlement System (PAPSS), and a growing push to digitize and unify African economies.

“You can’t build African trade without African payments,” Nkata said. “And you can’t build African payments if you’re not willing to go through the hard part.”

Monirates is doing that hard part—and in the process, it’s laying the groundwork for a more connected, financially resilient Africa.