Global payments company Visa has partnered with Safaricom’s M-Pesa and pan-African payments network Onafriq to launch a live stablecoin pilot in the Democratic Republic of Congo (DRC), marking a significant step toward modernizing cross-border payments in Africa through blockchain technology. The initiative, announced in early July 2026, is designed to use U.S. dollar-backed stablecoins to settle international mobile money transactions while reducing dependence on traditional correspondent banking networks.
The pilot enables cross-border mobile payments to be settled using U.S. dollar-pegged stablecoins on blockchain infrastructure, with the objective of delivering faster transactions and significantly reducing remittance costs.
Cross-border payments across Sub-Saharan Africa have traditionally relied on correspondent banking networks, where funds often pass through multiple financial institutions before reaching their destination. This process can involve routing payments through major financial centers outside Africa, resulting in delays, multiple currency conversions, and higher transaction costs. Industry estimates indicate that remittance fees across the region average around 8%, making international money transfers expensive for individuals and businesses.
The Visa, M-Pesa, and Onafriq collaboration seeks to address these inefficiencies by settling backend transactions with blockchain-based stablecoins whose value is linked to the U.S. dollar. Instead of relying on conventional banking ledgers, the platform processes settlements on blockchain infrastructure, allowing transfers to be completed within seconds rather than several days.
The companies indicated that while blockchain powers the settlement process, the technology remains largely invisible to consumers. Customers continue using the familiar M-Pesa wallet interface to initiate transfers, while merchants receive payments in local currency without requiring any interaction with digital assets or blockchain applications.
Democratic Republic of Congo selected for pilot
The Democratic Republic of Congo was selected as the first market because of its rapidly expanding mobile money ecosystem and relatively limited access to traditional banking services. The country’s large geographic area and underdeveloped physical banking infrastructure have accelerated demand for digital financial services, making it a suitable environment for testing blockchain-based payment infrastructure.
The stablecoin initiative also builds on Visa Pay, a Payments-as-a-Service platform introduced in the DRC in September 2025 through an application programming interface (API) integration with Onafriq. The existing infrastructure enabled developers to incorporate blockchain-based settlement capabilities while maintaining compatibility with established merchant payment networks.
The initiative builds on Visa Pay’s existing infrastructure in the Democratic Republic of Congo, allowing blockchain-based stablecoin settlements to be integrated without disrupting current merchant payment systems.
For Safaricom and the broader M-Pesa Africa joint venture, the pilot represents a broader strategy to expand beyond domestic mobile money services into blockchain-enabled financial infrastructure. Earlier in 2026, M-Pesa entered the stablecoin market through a partnership with a company based in the United Arab Emirates, reflecting its efforts to strengthen its position in international remittance services, particularly along the Gulf-to-Africa payment corridor.
By collaborating with Visa, which has continued expanding its digital asset capabilities, M-Pesa aims to retain its role as the primary consumer-facing payment platform while modernizing its settlement infrastructure through blockchain technology.
Regulatory outlook for stablecoin adoption
The pilot could also influence regulatory discussions surrounding digital assets across Africa. Several central banks, including those in Kenya and Nigeria, have historically expressed concerns about cryptocurrencies because of potential risks involving capital movement and monetary policy.
However, the companies’ approach centers on regulated, identity-verified payment networks that use stablecoins solely as a settlement mechanism rather than as speculative investment assets. If the pilot demonstrates that blockchain-based stablecoin settlements can reduce remittance costs and improve payment efficiency, it could encourage regulators across Africa to consider similar frameworks for cross-border financial services.
The initiative highlights the growing role of blockchain technology in payment infrastructure, as financial institutions increasingly explore stablecoins to improve settlement speed, lower operating costs, and expand access to digital financial services in emerging markets.
