Stablecoin Transfers Could Cut Remittance Costs by 66% in Africa, Report Finds
Sending money across African borders could become significantly cheaper with stablecoins, according to a new report suggesting that digital dollar transfers cost approximately 66% less than traditional remittance services in Sub-Saharan Africa.
The findings come from a third-quarter 2026 analysis by stablecoin payment network Borderless.xyz, which compared stablecoin-powered transfers with conventional international money transfer services.
Stablecoin remittances in Sub-Saharan Africa cost approximately 2.9% of the amount transferred, compared with 8.46% through traditional channels.
For millions of Africans who depend on money sent by relatives abroad, businesses making international payments and freelancers receiving overseas earnings, lower transaction costs could make a meaningful difference.
However, the reported savings are estimates based on a comparison of different datasets, not a guarantee that every stablecoin transfer will be cheaper.
How Much Could Africans Save Using Stablecoins?
The report suggests that stablecoin-based remittances offer substantial savings, particularly in regions where conventional international money transfers remain expensive.
For example, consider someone sending $200 to a family member in Africa.
Based on the reported Sub-Saharan African rates:
| Transfer method | Estimated fee | Recipient receives* |
|---|---|---|
| Traditional remittance | $16.92 (8.46%) | $183.08 |
| Stablecoin transfer | $5.80 (2.9%) | $194.20 |
| Potential savings | $11.12 | 66% lower fees |
Illustrative calculation assuming fees are deducted from the $200 and no additional charges or exchange-rate differences apply.
The $11.12 difference may appear modest, but for families receiving regular remittances, repeated savings could add up over time.
Globally, Borderless.xyz reported an even larger difference. Its comparison placed stablecoin remittance costs at a median of 1%, against a 6.36% average for traditional services, suggesting potential savings of approximately 84%.
Importantly, the comparison uses Borderless.xyz pricing from the third quarter of 2026 and World Bank data from the same period in 2025. The figures therefore do not represent a simultaneous, like-for-like test of all providers.
Why Are Stablecoin Transfers Potentially Cheaper?
Traditional international money transfers can involve several intermediaries, including banks, payment processors and currency exchange providers.
Each intermediary may introduce additional fees, while converting currencies can further increase the total cost.
Stablecoins such as USDT and USDC offer a different approach.
These cryptocurrencies are designed to maintain a relatively stable value, usually pegged to the US dollar.
Rather than routing funds through several banking institutions, users can transfer stablecoins over blockchain networks.
The receiving party can then convert the stablecoins into local currency through an exchange or payment provider.
For example, a Kenyan freelancer receiving payment from a client in the United States could potentially receive USDC and convert it into Kenyan shillings through a supported service.
This process may reduce intermediary costs and settlement delays.
However, the actual savings depend on exchange rates, network fees, service provider charges and the cost of converting stablecoins into local money.
Africa Could Be a Major Beneficiary
Cross-border payments remain an important part of Africa’s financial system.
Millions of people rely on remittances to cover everyday expenses, including education, healthcare, rent and household needs.
Businesses also depend on international payments to purchase goods, pay suppliers and receive revenue from foreign customers.
Stablecoins could provide an alternative for some of these transactions, particularly where conventional international payment systems are costly or difficult to access.
For freelancers and small businesses in countries such as Kenya, Nigeria and Ghana, digital dollar payments may offer greater flexibility when dealing with international clients.
However, stablecoin adoption also depends on reliable local currency conversion services, regulatory compliance and access to trustworthy payment providers.
Are Stablecoins Always Cheaper Than Banks?
Not necessarily.
A separate Bank of Italy study published in July 2026 reached a more cautious conclusion.
Researchers conducted actual transfers of 200 USDC across ten international payment corridors involving Italy, South Africa, Argentina, Brazil, Japan and the United Arab Emirates.
They found that stablecoin transfer costs ranged from 0.30% to nearly 9%, with no consistent cost advantage over traditional remittance services.
The biggest expenses often came from converting money into stablecoins and converting it back into local currency, rather than the blockchain transfer itself.
The study also found that transaction speeds varied significantly depending on the payment infrastructure used.
These findings suggest that while stablecoins can deliver substantial savings, they are not automatically the cheapest option in every situation.
Frequently Asked Questions
How much cheaper are stablecoin remittances in Africa?
The Borderless.xyz comparison suggests that stablecoin-powered transfers in Sub-Saharan Africa cost approximately 2.9%, compared with 8.46% for traditional remittances. This represents a potential reduction of about 66%.
What stablecoins can be used for international transfers?
Common dollar-backed stablecoins include Tether (USDT) and USD Coin (USDC). Availability depends on the payment provider and supported blockchain network.
Can stablecoins be converted into Kenyan shillings?
Yes, certain exchanges and payment providers support converting stablecoins into Kenyan shillings. Availability, fees and regulatory requirements differ between services.
Are stablecoin transfers instant?
Blockchain settlement can take seconds or minutes, depending on the network. However, converting stablecoins into local currency and completing the final payout may take longer.
Are stablecoin remittances risk-free?
No. Users face potential risks involving fraud, wallet security, exchange rates, service providers, regulatory restrictions and stablecoin issuers. Transfers sent to incorrect blockchain addresses may also be difficult or impossible to recover.
