African businesses are increasingly turning to stablecoins to address delays in cross-border payments, limited access to US dollars and the costs associated with traditional international money transfers, according to Dickson Nsofor, CEO of pan-African payment infrastructure company Kora.

Nsofor told Crypto.news that commercial payments, supplier settlements and cross-border business payouts are among the areas where demand for stablecoins is growing. Businesses, he said, are increasingly looking at dollar-backed digital tokens as a practical payment tool rather than simply as an investment asset.

The development highlights a broader shift in how companies in African markets are approaching international payments. Traditional transfers can involve correspondent banks, currency conversions and compliance checks, potentially adding days to a transaction. Stablecoins can provide a dollar-denominated settlement layer that operates on blockchain networks.

Businesses seek faster supplier payments

Nsofor cited his experience running a hardware business in Nigeria before founding Kora. He recalled situations in which payments to a Chinese manufacturer took between 10 and 14 days through the traditional banking system.

Such transfers could pass through multiple correspondent banks, while an error in payment information could further extend the settlement period. For businesses importing goods or paying overseas suppliers, delays can affect inventory, working capital and relationships with suppliers.

Stablecoins can reduce some of those intermediary steps by allowing value to be transferred on a blockchain. The recipient can subsequently convert the stablecoin into local currency through an appropriate payment provider or financial service.

Nsofor said the attraction is particularly relevant in markets where businesses face difficulty accessing dollar liquidity or where cross-border banking connections remain fragmented.

Stablecoins offer a dollar-based settlement layer

Cross-border payments within Africa can involve multiple currencies and banking systems. A payment may require conversion from one local currency into another, with intermediary institutions involved in the process.

According to Nsofor, stablecoins can allow payment providers to manage dollar liquidity centrally before converting funds into the recipient’s local currency.

This model could also reduce the need for payment companies to maintain separate pools of prefunded money across several countries. Instead, stablecoins can be used as an intermediate settlement asset before the final local-currency payout.

However, the blockchain transfer itself is only one part of the payment process. The recipient still needs access to a bank account, mobile-money wallet or merchant payment system through which the funds can be spent or withdrawn.

Nigeria shows strong digital-asset activity

Nigeria is one of the African markets frequently cited in discussions about cryptocurrency and stablecoin adoption.

Chainalysis reported in September 2025 that Nigeria received more than $92.1 billion in cryptocurrency value between July 2024 and June 2025. The company also identified regular multimillion-dollar stablecoin transfers supporting trade, energy and merchant payments between Africa, the Middle East and Asia.

The $92.1 billion figure covers cryptocurrency activity more broadly and should not be interpreted as stablecoin payment volume alone. Nevertheless, it illustrates the scale of digital-asset activity in one of Africa’s largest economies.

Local-currency conversion remains a challenge

While stablecoins can move value quickly across blockchain networks, converting those assets into local currency remains an important part of the payment chain.

A separate analysis published by Crypto.news in August noted that stablecoin transfers can cross borders within seconds, but local-currency conversion still depends on liquidity, banking access and payout infrastructure.

Research by the Banca d’Italia also provides a more nuanced picture of stablecoin payment costs. Its study tested $200 USDC transfers across 10 corridors involving Italy, Argentina, Brazil, South Africa, the United Arab Emirates and Japan. Total costs varied considerably, from 0.30% to almost 9%, with funding, withdrawals and currency conversion accounting for significant portions of the expense.

The researchers also found that some South African routes took one or two business days because traditional bank transfers affected the local-currency settlement stages. Routes supported by domestic instant-payment systems could be completed much faster.

The study cautioned that its limited transactions and use of a single stablecoin meant the findings could not automatically be applied to every stablecoin provider or payment corridor.

Banks and mobile-money networks remain important

Nsofor said stablecoins should not necessarily be viewed as replacements for Africa’s existing banking and mobile-money systems.

Instead, he argued that the infrastructure needs to connect stablecoins with existing financial networks. A business may receive a stablecoin payment, but the final beneficiary may still want to receive naira, cedi, rand or another local currency through a bank account or mobile wallet.

This makes interoperability a key requirement for wider adoption.

Payment providers also need to manage customer identification, anti-money-laundering checks, transaction monitoring, liquidity and local regulatory requirements. Nsofor said compliant conversion between stablecoins and local currencies is particularly important for businesses operating across multiple African markets.

Regulation remains a key consideration

Stablecoin adoption is also taking place alongside evolving regulatory frameworks in major financial markets.

Nsofor said African payment companies need to focus on adapting stablecoins to local commercial requirements while ensuring compliance in each market. Different countries can have different licensing, financial-services and digital-asset rules, potentially making regional expansion more complicated.

He also argued that regulatory approvals that can be recognised across African markets could help compliant payment providers expand more efficiently.

The issue extends beyond regulation. Stablecoins backed by US dollars can create dependencies on overseas issuers, reserves and redemption mechanisms.

Foreign-issued stablecoins bring additional risks

Nsofor warned that African businesses relying on dollar-backed stablecoins can face risks linked to reserve management, redemption, regulation and continued access to the tokens.

These risks are separate from the payment delays that stablecoins are intended to address. A digital token may move rapidly on a blockchain, but businesses still depend on the issuer, liquidity providers, banking partners and local payment infrastructure to complete the entire transaction.

For that reason, the wider stablecoin payment model depends on more than blockchain speed. It requires reliable conversion, liquidity, regulatory compliance and connections to local financial networks.

Stablecoins gain a role in African trade

The growing interest among African businesses reflects a practical challenge in international commerce: companies need reliable ways to pay suppliers and receive money across borders without excessive delays or costs.

Stablecoins can provide a digital dollar settlement layer that reduces some of the intermediary steps involved in conventional payments. At the same time, they do not remove the need for local banks, mobile-money networks, currency conversion or regulatory oversight.

For African businesses, the next stage of stablecoin adoption is therefore likely to depend not only on faster blockchain transfers but also on how effectively digital assets can connect with existing financial infrastructure.