Flutterwave, Polygon Partner to Launch Stablecoin-Powered Cross-Border Payments Across Africa

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Flutterwave, Africa’s leading payments infrastructure provider, has signed a multi-year partnership with blockchain software innovator Polygon Labs to leverage stablecoins and accelerate and reduce the costs of cross-border transactions.

According to Tech in Africa, through this partnership, Flutterwave will leverage Polygon’s blockchain ecosystem for seamless, ultra-low-cost settlements across over 30 African nations, marking what has been described as one of the most expansive real-world stablecoin implementations in emerging economies.

Established in 2016, Flutterwave bridges international enterprises with Africa’s dynamic financial landscapes, having facilitated more than $40 billion in transactions across 34 countries while accommodating over 150 currencies. 

The partnership with Polygon represents Flutterwave’s most ambitious foray into blockchain integration to date, targeting Africa’s enduring hurdle of sluggish, exorbitant, and disjointed cross-border payments.

CoinDesk reports that Polygon’s energy-efficient proof-of-stake blockchain will function as Flutterwave’s primary conduit for cross-border reconciliations. The initiative is set to kick off in 2025 with a curated group of enterprise customers, expanding to encompass all Flutterwave for Business clients and the Send App by 2026.

Africa manages vast volumes of remittances and commercial transfers annually, yet its payment pathways rank among the most expensive in the world. World Bank data reveals that remitting funds to sub-Saharan Africa averages 8% per transaction. This represents roughly triple the worldwide benchmark, with delays often extending several days, thereby constricting trade, liquidity, and capital access for countless small enterprises.

Flutterwave and Polygon assert that their joint venture will dismantle these obstacles by deploying stablecoins for near-instantaneous settlements at mere fractions of a cent. Stablecoin adoption in Africa has surged recently, driven by the growth of remittances and e-commerce. In 2024 alone, continental stablecoin volumes surpassed $50 billion, accounting for over 40% of the region’s total cryptocurrency inflows.

“Enterprises in developing markets handle billions in cross-border flows each year, yet grapple with steep fees and protracted delays,” stated Olugbenga Agboọla, Flutterwave’s founder and CEO. “Teaming with Polygon delivers a breakthrough that renders global payments simpler and more economical than numerous domestic ones, catalysing fresh economic avenues throughout Africa.”

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Marc Boiron, CEO of Polygon Labs, emphasised that Flutterwave’s adoption of the platform underscores a robust faith in stablecoins as the foundation of global finance. “Vibrant African firms forfeit earnings yearly due to lethargic and costly cross-border mechanics. Flutterwave recognises, as we do, that polygon-enabled stablecoins can compress settlements from days to seconds and transform fees from dollars to pennies,” Boiron remarked.

The inaugural rollout prioritises Flutterwave’s global corporate partners, including Uber and Audiomack. Subsequent stages will democratise these advantages for everyday users via the Send app.

For Polygon, this alliance bolsters an expanding roster of enterprise triumphs, such as facilitating BlackRock’s BUIDL Fund tokenisation via Securitise and enabling large-scale stablecoin movements worldwide. For Flutterwave, it underscores a forward-thinking commitment to blockchain as the vanguard of digital finance evolution.

Nigeria stands at the epicentre of Africa’s blockchain and stablecoin revolution, driven by a confluence of economic necessities and technological innovation. The country processes over $20 billion in annual remittances, the highest in sub-Saharan Africa. Yet, traditional channels impose fees averaging 9-10% and delays of 1-3 days, exacerbating currency volatility from naira fluctuations. 

Since the Central Bank of Nigeria (CBN) lifted its 2021 crypto trading ban in December 2023, licensed virtual asset service providers (VASPs), such as Flutterwave, have proliferated, with over 30 firms now approved for operations. Stablecoin usage exploded in 2024, with Nigeria accounting for nearly 25% of continental volumes ($12.5 billion+), driven by platforms such as Binance, Busha, and now Flutterwave’s integrations. Local startups like Yellow Card and Semo have similarly adopted Polygon and similar chains for USDT/USDC remittances, reducing costs to under 1%. 

The eNaira CBDC, launched in 2021, has seen lukewarm adoption (under 1% of adults), pushing private stablecoins as de facto alternatives amid hyperinflation (peaking at 34% in 2024) and forex shortages. Regulatory clarity, as outlined in the SEC’s 2024 guidelines, has attracted over $500 million in blockchain investments, fostering a “crypto corridor” among Nigeria, South Africa, and Kenya. This spate reflects a broader shift from peer-to-peer trading on Telegram groups during bans to institutionalised, compliant solutions addressing Nigeria’s $60 billion informal economy.

Using stablecoins for quick payments could change tourism by making it easy to pay for bookings, visas, and expenses, which would attract wealthy international visitors who are put off In Nigeria, where tourism contributes about 4% to GDP ($20 billion pre-COVID, recovering to $15 billion in 2024), high remittance fees currently inflate costs for diaspora-funded travel and deter SME tour operators from accepting foreign cards (with 3-5% FX markups). Flutterwave’s solution could slash these to pennies, boosting intra-African travel (e.g., from South Africa or Kenya) and inbound tourism from Europe/USA—potentially adding 10-15% to sector revenue via seamless apps like Send for hotel payments or event tickets. 

Continentally, itinerant safaris, ecotourism in East Africa, or cultural festivals in West Africa benefit from real-time multi-currency settlements, which reduce abandonment rates in online bookings (currently 20-30% due to payment failures). 

For Nigeria’s budding medical/eco-tourism niches (e.g., Lagos wellness retreats or Yankari Game Reserve), low-cost stablecoin payouts to local vendors enhance cash flow, supporting 1.5 million jobs. Overall, the Flutterwave-Polygon partnership could elevate Africa’s tourism GDP share from 8.5% to 10% by 2030, according to WTTC projections, if scaled. This will foster inclusive growth, but it risks overreliance on volatile crypto if regulations lag behind.

Dive deeper into Africa’s fintech breakthroughs. Explore more game-changing stories on blockchain, payments, and economic innovation right here on our site!

 

FAQs

1. What is the Flutterwave-Polygon partnership about?

It’s a multi-year collaboration using Polygon’s proof-of-stake blockchain for stablecoin-based, instant, and low-cost cross-border settlements, starting with enterprises in 2025 and expanding to all users by 2026.

2. How will this reduce cross-border payment costs in Africa? 

By settling transactions via stablecoins in seconds at fractions of a cent, it bypasses traditional banks’ average fees of 8% and multi-day delays, according to World Bank data—making global transfers cheaper than many local ones.

3. Which Nigerian companies or apps will benefit first? 

In Phase One, multinational clients such as Uber and Audiomack will benefit, while consumers using the Send App will see immediate gains in 2026, contributing to Nigeria’s $20B+ remittance market.

4. What role do stablecoins play in Nigeria’s economy? 

They handle approximately $12.5 billion in 2024 volumes (25% of Africa’s total), offering a hedge against naira volatility, faster remittances, and alternatives to the underutilised eNaira CBDC amid post-ban regulatory growth.

5. Could this impact Nigeria’s tourism industry?  

Yes. Seamless stablecoin payments for bookings and expenses could cut FX costs, boost diaspora travel, and add 10-15% to sector revenue by enabling SME operators and attracting more international visitors.