Visa, the global credit card giant, has announced a strategic partnership with Yellow Card Financial, a prominent stablecoin infrastructure provider operating in over 20 African markets. This collaboration aims to accelerate the adoption of stablecoins in Africa by addressing critical issues such as dollar shortages and high remittance fees. The move is part of Visa's broader initiative to expand its stablecoin initiatives to Central and Eastern Europe, the Middle East, and Africa.

The partnership will leverage Visa Direct’s existing network and Yellow Card’s licenses across Africa and parts of the broader CEMEA region to enable near-instant, low-cost stablecoin transactions. This is particularly crucial in markets where local currency volatility and dollar shortages have hindered cross-border commerce. The collaboration targets two key pain points: for corporations, it offers 365-day liquidity management, which can bolster markets where banks often take three business days to process dollar transfers. For consumers, it could enable sub-$1 remittances across borders where traditional providers charge up to 8% in fees.

Yellow Card’s existing infrastructure provides Visa with immediate access to a mature crypto corridor. The fintech, which positions itself as the licensed stablecoin payments orchestrator for Africa and the emerging world, has processed over $6 billion in transactions since 2019, primarily through USDT and USDC. This partnership allows Visa to leverage those flows while layering on compliance checks, gaining a strategic edge over Circle’s competing Onafriq partnership, which launched USDC rails across 40 African countries last April.

Visa’s stablecoin infrastructure has already processed over $225 million in USDC settlements since 2023. The collaboration with Yellow Card is expected to bring stablecoin settlements to 20 African markets, targeting regions with significant dollar shortages and high remittance fees. The partnership will focus on enhancing liquidity management and enabling faster and more cost-effective transfers, which are crucial for economic growth in these regions. By leveraging Yellow Card's infrastructure, Visa aims to provide a more efficient and cost-effective payment solution for businesses and consumers in Africa.

This initiative is part of Visa's broader strategy to expand its stablecoin operations globally, with a focus on regions where traditional payment methods are less efficient. The partnership with Yellow Card is a significant step towards achieving this goal, as it will help Visa tap into the growing demand for stablecoins in Africa. The collaboration is expected to have a positive impact on the African economy, as it will provide a more efficient and cost-effective payment solution for businesses and consumers. This will help to reduce the reliance on traditional payment methods, which are often slow and expensive.

The partnership between Visa and Yellow Card is a significant development in the stablecoin industry, as it demonstrates the growing interest in this technology among major financial institutions. The collaboration is expected to have a positive impact on the African economy, as it will provide a more efficient and cost-effective payment solution for businesses and consumers. This will help to reduce the reliance on traditional payment methods, which are often slow and expensive. The move builds on Visa’s existing stablecoin infrastructure, which has already processed over $225 million in USDC settlements since 2023. The collaboration is expected to bring stablecoin settlements to 20 African markets, targeting regions with significant dollar shortages and high remittance fees. The partnership will focus on enhancing liquidity management and enabling faster and more cost-effective transfers, which are crucial for economic growth in these regions. By leveraging Yellow Card's infrastructure, Visa aims to provide a more efficient and cost-effective payment solution for businesses and consumers in Africa. This initiative is part of Visa's broader strategy to expand its stablecoin operations globally, with a focus on regions where traditional payment methods are less efficient. The partnership with Yellow Card is a significant step towards achieving this goal, as it will help Visa tap into the growing demand for stablecoins in Africa. The collaboration is expected to have a positive impact on the African economy, as it will provide a more efficient and cost-effective payment solution for businesses and consumers. This will help to reduce the reliance on traditional payment methods, which are often slow and expensive.