Cross-Border Payments Still Burden African Businesses- Firm

A firm, Oneremit, has said it processed over $200 million in outgoing cross-border transactions since it began operations in 2024, with over 1,000 businesses using its platform.

The company said businesses continue to face challenges with foreign exchange uncertainties, payment delays and varying regulatory requirements as they conduct international transactions.

The head of Partnerships at Oneremit, Bolaji Akinola, said the company initially focused on Nigerian importers making payments to suppliers in Asia and Europe before expanding to other payment corridors.

Akinola said the company works with existing financial institutions and international payment providers to route transactions.

“We’re not trying to replace the banks or the correspondent networks. We’re working with them, a network of international providers, banks and partners we’ve built relationships with over time, so that our customers don’t have to think about any of it,” he said.

The company said its model addresses some challenges businesses encounter with international payments, including foreign exchange spreads, delays associated with correspondent banking and differing compliance requirements across jurisdictions.

Oneremit said it now serves businesses in sectors including agriculture, pharmaceuticals, automobiles, freight and shipping, and supports transactions in more than 100 currencies.

It said it has partnerships with payment and financial infrastructure providers, including OwlPay, which it said provides regulated stablecoin settlement rails, and Blockradar, which supports its stablecoin infrastructure.

The company also said it maintains banking and regulatory partnerships in Nigeria, Canada and the United States.

Akinola said the company works with its partners to handle payment routing while providing customers with human support when transactions require intervention.