Ripple Payments Explores XRP’s Role in Africa’s $2.7 Trillion Market

Ripple Payments highlighted XRP’s position in the anticipated market in a recent study evaluating new African revenue sources via streamlined payment systems.

The report referenced a United Nations report that stated that Africa offers a $2.7 trillion market opportunity and is expected to serve as a pivotal driver for international trade.

Furthermore, it emphasized that in recent years, the number of payments-focused fintechs in Africa has increased substantially.

Additionally, it was stated that the market has reacted favorably to financial services that are more accessible and affordable. Ghana, Nigeria, South Africa, Kenya, and Egypt are at the vanguard of this revolution in payment methods.

Furthermore, Ripple illustrated its point with Nigeria, where 73% of adults possess a mobile phone. Despite ubiquitous mobile usage, credit card usage remains below 5%, according to the argument.

The situation, according to the payment company, generates a substantial void that necessitates attention from the financial services sector.

Furthermore, Ripple projected that financial services revenue in Africa would amount to $230 billion by 2025.

To enhance its market position and secure a substantial portion, Ripple revealed its partnership with Onafriq, which aims to address challenges associated with conventional cross-border transactions in Africa.

The specific challenges the partnership aims to tackle are extended payment settlement periods, exorbitant fees, and restricted availability of physical banking facilities.

Notably, across 35 African countries, Onafriq connects 400 million mobile wallets and administers over 800 payment corridors.

The report highlights how the partnership between Onafriq and Ripple can facilitate financial inclusion in the area.

The key component of Ripple’s strategy to capitalize on the $2.7 trillion market opportunity is “Ripple Payments,” an innovative service that enables instantaneous, real-time transactions at a fraction of the expense of traditional methods.

Ripple demonstrated in the report how XRP predominates among institutions wishing to transfer and receive funds for business purposes.

In particular, when one party initiates a fiat cross-border transaction through Ripple Payments, the funds traverse XRP before reaching the recipient institution and, ultimately, the beneficiaries. This entire process transpires in real time.

In light of the ongoing progress and integration of the African region into the global economy, Ripple perceives a favorable prospect to investigate the thriving market and exploit fresh sources of revenue.