It is awesome that Africa can share its resources with the rest of the world, but much more important, but often overlooked, is intra-African trading. The intra-African trade market has the potential to reach trillions of dollars, growing from $170 million as of 2015 to $192 billion in 2023. However, there are still numerous infrastructure issues, particularly in payments, that need to be resolved for intra-African trading to reach its full potential.  

Africa has over 40 national currencies, but there is no single currency that can be used to trade between the different nations. That means any transactions with other Africans outside of your country have to be done with a third currency (usually USD or EUR). According to World Bank data, intra-African remittances carry fees over 8% on average, roughly three times the global norm. For example, sending money from Nigeria to Ghana typically means converting from Naira to USD, then to Cedi, dealing with bank charges and exchange problems at each step. These conversion layers make even small cross-border payments very expensive. Formal bank transfers are impractical for many small businesses and informal traders.

Infrastructure and Regulatory Gaps

Apart from the banking issues, many African countries don’t yet have modern payment systems. Most of them can’t process payments instantly, so cross-border transfers are done in batches or even handled manually. Because of these systems, your money can stay processing for days before it lands, leaving businesses stranded with cash flow problems.

On top of that, every country has its own rules for finance, KYC, and licensing. In fact, there are over 50 different legal systems across the continent with no single guide for everyone. This means any fintech that wants to operate across borders will have to follow each country’s rules one by one. That lack of unity makes things slower, more expensive, and discourages innovation.

YDPay’s Digital Stablecoin Rail

YDPay tackles this problem with a modern blockchain-based payment rail. Instead of relying on traditional banks and the existing banking system, YDPay lets users send digital stablecoins (crypto tokens pegged to fiat currency) across borders. On the blockchain, transfers go through in minutes any time of day, with no human intermediaries.  

With YDPay, Africans can convert their local currencies into stablecoins and send to their friends and families. Since both the sender and receiver can access the stablecoin, there is no need for multiple currency conversions. YDPay’s system effectively bypasses expensive FX hops. Stablecoins solve the problem of delays, high fees and currency conversion issues common in traditional payments.

Advantages of the YDPay System for Cross-Border Payments

Blockchain Rails: Using the blockchain, payments run 24/7 without bank holidays or manual clearing. YDPay’s digital rail handles transactions directly between wallets, eliminating most intermediaries and bank fees.

Instant Settlement: Transfers on YDPay settle in minutes, so funds clear almost immediately rather than taking days. The network’s 24/7 availability means transactions aren’t stuck waiting on overnight batches.

Zero FX Hops: Since YDPay moves value in one stablecoin, there are no hidden exchange spreads at each step. Users see one transparent rate, rather than compounding spreads in naira, dollars, cedi, etc.

Mobile-first Access: YDPay’s service is built for smartphones, leveraging Africa’s high mobile penetration. By fitting into the mobile ecosystem (including popular mobile money wallets and agents), YDPay reaches people who lack bank accounts.

Together, these features let YDPay slash costs and speed up intra-Africa trades. By removing the hidden fees and delays of old systems, YDPay makes sending money across borders nearly as easy (and cheap) as local payments. More affordable, transparent transfers open up intra-African trade and commerce. With YDPay’s digital rail in place, businesses and families can tap new cross-border opportunities without being squeezed by high bank fees – finally moving toward a truly connected African economy.