from OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) — AFRICANS continue to pay the highest fees in the world to send money across borders, a challenge cryptocurrency exchange Binance says is creating growing demand for peer-to-peer trading as an alternative to traditional payment channels.
Sending US$200 within Sub-Saharan Africa costs an average of 8.78% of the amount transferred, according to the World Bank, compared with a global average of 6.49%.
For a region that moves tens of billions of dollars in remittances annually, the higher costs represent a significant drain on household incomes and small business cash flows.
Binance is positioning its peer-to-peer (P2P) marketplace as one solution, particularly in countries where banks offer limited support for cryptocurrency transactions.
Rather than processing payments through the banking system, the platform matches buyers and sellers directly.
One user transfers local currency through a bank account or mobile money service while another provides the equivalent value in cryptocurrency.
Binance verifies both parties and holds the digital assets in escrow until payment has been confirmed.
The model mirrors informal community-based financial networks that have operated across Africa for decades.
South Africa’s stokvels, Kenya’s chamas and Ghana’s susu groups all enable members to pool and exchange money directly without relying on conventional financial institutions.
“For many people, sending money via another person rather than through a bank is not new. It is how some parents and grandparents have saved and moved money for generations,” said Larry Cooke, Head of Binance Africa.
Cooke said blockchain technology provides an additional layer of transparency by recording every transaction while requiring users to complete identity verification before they are able to trade.
“What this creates is a digital rail that works across borders, and one that is verified and traceable at every step,” he said.
“It is not about avoiding oversight; it is about making cross-border payments visible, secure and accountable.”
Cross-border payments remain one of Africa’s biggest financial infrastructure challenges despite years of investment in digital banking and mobile money.
High transaction costs, fragmented payment systems and limited interoperability between national banking networks continue to hamper intra-African trade and remittance flows.
The growth of digital assets has coincided with those structural constraints. Cryptocurrency activity across Sub-Saharan Africa rose by more than 50% in the year to June 2025, according to blockchain analytics firm Chainalysis.
The firm said some of the strongest increases occurred during periods of currency instability, as households sought alternatives to rapidly depreciating local currencies.
Binance is also expanding its Binance Earn product across African markets, allowing users to generate returns on cryptocurrency holdings.
The company says the product is intended to complement peer-to-peer trading by providing an option for users looking to preserve value after converting local currency into digital assets.
Cooke said wider adoption would depend on collaboration with policymakers and regulators rather than operating outside existing financial systems.
“None of this works in isolation,” he said.
“It has to be built alongside regulators, central banks and trade bodies and it must come with real financial education.”
Binance said it plans to expand access to both its peer-to-peer marketplace and Earn products across Africa during 2026 while continuing to engage with regulators across the continent.
The company is seeking to capitalise on growing demand for lower-cost cross-border payments at a time when governments and financial institutions are also pursuing new regional payment systems aimed at reducing the cost and complexity of moving money across Africa.
– CAJ News