Visa, a global leader in digital payments, has partnered with Yellow Card Financial, an African stablecoin payments provider, to accelerate the adoption of digital dollars across the continent. This collaboration aims to enhance treasury operations, improve liquidity management, and enable more cost-effective money transfers. The partnership will focus on promoting stablecoin use for cross-border payments in emerging markets where Yellow Card operates, with the first stablecoin transactions with Visa expected to launch in at least one African country by the end of 2025, and additional rollouts planned for 2026.

Yellow Card, Africa’s first licensed stablecoin payments operator, also functions as a cryptocurrency exchange. Since launching in Nigeria in 2019, the company has expanded its operations to 20 countries and has processed over $6 billion in transactions. The collaboration with Visa is expected to help realize the potential of stablecoin technology in emerging economies. Chris Maurice, Co-founder and CEO of Yellow Card, emphasized the growing importance of stablecoin strategies for traditional payment companies, highlighting the urgency to deploy such technologies effectively.

In a separate collaboration, PayPal integrated with Yellow Card in 2023, making Yellow Card the first FinTech in Africa to list PYUSD, PayPal's USD stablecoin. This integration allows for the settlement of cross-border money transfers via PayPal’s Xoom cross-border payments business. Visa has also expanded its stablecoin settlement solution to select issuers and acquirers in the Central and Eastern European, Middle East, and Africa (CEMEA) region. This advancement enables U.S. dollar cross-border transactions through blockchain technology, further solidifying Visa's commitment to stablecoin initiatives. Godfrey Sullivan, Visa’s senior vice president and head of product and solution for CEMEA, stated that by 2025, every institution that moves money will need a stablecoin strategy. Visa is prepared to assist its partners in navigating this transformation, bringing the necessary scale, trust, and innovation to build the next generation of global payments.

Stablecoin adoption in Africa is on the rise, driven by limited access to US dollars and ongoing foreign exchange crises in several countries. Dollar-pegged stablecoins such as USDt (USDT) and USDC (USDC) have gained significant traction in Africa. Nigeria and Ethiopia, two of Africa’s largest economies, have seen significant growth in retail crypto adoption. Stablecoins now account for approximately 43% of the region’s total transaction volume. USDC issuer Circle has identified Africa as a vital market for digital dollars. In April, the company partnered with African payment provider Onafriq to pilot USDC settlements across 40 countries.

This partnership between Visa and Yellow Card underscores the growing importance of stablecoins in the global payments ecosystem and Visa's proactive approach to integrating this technology into its services. The initiative is set to debut stablecoin payments in at least one African market by the end of 2025, with plans to expand to more countries thereafter. This collaboration highlights the synergy between traditional payment networks and cryptocurrency solutions, paving the way for more innovative and efficient financial services across the continent.