Ripple, a key player in the blockchain space, is making strategic inroads into Africa through a notable collaboration with Onafriq. This move reflects Ripple’s ambition to tap into a significant $2.7 trillion market opportunity embedded within Africa’s thriving fintech sector.
Africa’s Fintech Boom
The African continent, recognized as a significant player in the global business landscape, is experiencing notable growth in its fintech sector, particularly in the domain of payments.
Recent analyses predict that the financial services revenue in Africa is poised to soar to $230 billion in the next two years. This surge is attributed to the increasing adoption of fintech solutions, a growing population of mobile phone users, and a rising interest in digital banking.
Ripple Partner With Onafriq
On November 8th, as reported by Coinpedia, Ripple’s strategic partnership with Onafriq has a clear objective: to tackle common challenges in cross-border money transfers. These challenges include steep fees, extended settlement times, and restricted access to traditional banking infrastructure.
Onafriq, with its extensive network connecting millions of mobile wallets across a significant portion of Africa and actively operating payment corridors, emerges as a pivotal player in fostering financial inclusion.
The unfolding partnership between Ripple and Onafriq holds the potential to deliver tangible benefits across the entire African region, aligning seamlessly with Ripple’s overarching strategy within the promising $2.7 trillion market.
Africa’s Growing Market
As Africa cements its standing in the global economy, financial institutions find themselves presented with a unique opportunity to explore new revenue streams by actively participating in the region’s rapid growth.
Leading nations such as South Africa, Nigeria, Kenya, Ghana, and Egypt are spearheading the payments revolution, as highlighted by Ripple.
Notably, in Nigeria, where a substantial 73% of adults own mobile phones but credit card usage remains low, a significant market gap exists for the financial services industry to address, opening up avenues for innovative solutions and inclusive financial practices.
