Pan-African fintech company Kora has introduced a new product called One Rail. This tool integrates stablecoins into its current payment network, allowing eligible merchants in supported African markets to accept, convert, and settle payments using dollar-backed stablecoins like USDT and USDC.
By adding this feature, Kora aims to help businesses handle cross-border payments faster and without the usual high costs.
The Problem with Traditional Cross-Border Payments
Traditional cross-border transactions in Africa often involve complex routing through multiple correspondent banks. According to Kora’s CEO, Dickson Nsofor, sending a wire transfer from Nigeria to China can take up to three days because funds must bounce through cities like New York and Hong Kong.
Furthermore, payment companies typically need to lock up significant amounts of working capital in prefunded accounts across different countries just to handle local payouts. This ties up money that could otherwise be used to grow the business.
How One Rail Solves These Challenges
One Rail allows businesses to bypass old-fashioned banking rails for certain transactions. With stablecoins, money can move between compatible digital wallets in minutes at a fraction of the traditional cost.
- No Blockchain Management Needed: Merchants do not need to manage underlying blockchain technology or set up separate wallets. Kora handles the technical background work.
- Flexible Payouts: Businesses can hold balances in digital dollars, track transactions through a single dashboard, or convert their funds into local currencies to send directly to bank accounts or mobile wallets.
The Role of Stablecoins in Africa
Stablecoin adoption is growing quickly across the continent, particularly in regions facing foreign exchange shortages. The International Monetary Fund (IMF) reports that Nigeria alone accounts for roughly 60% of stablecoin inflows into Sub-Saharan Africa since 2019.
Because roughly 99% of the stablecoin market is tied to the US dollar, these digital assets provide a reliable way for emerging markets to access digital dollars. While stablecoins still require local currency liquidity—meaning a fintech must still work with local partners to pay out physical cash in currencies like Kenyan shillings or Tanzanian shillings—they significantly cut down the need to prefund every single market heavily.
As global financial institutions like the Bank for International Settlements continue researching digital money and tokenized reserves, Kora’s move positions its merchants to take advantage of faster, modern financial infrastructure.
