Every year, the African diaspora sends over $40 billion to the continent, making remittances one of the primary sources of funding for the African economy. Yet the exorbitant fees charged by traditional services siphon off billions from these flows. Discover how new fintech solutions are transforming this colossal market and how ElyonPay is part of this revolution.
1A $40 Billion Market
According to World Bank data, remittances to sub-Saharan Africa reached $49 billion in 2023, with over $40 billion coming directly from the diaspora living in Europe, North America, and Gulf countries. These flows now exceed official development assistance and, in countries like Senegal and The Gambia, represent more than 10% of national GDP. Nigeria alone receives nearly $20 billion annually, followed by Ghana, Kenya, and the Democratic Republic of Congo. This financial lifeline directly fuels the real economy: education, healthcare, real estate, and small business creation.
2High Fees of Traditional Services
Western Union, MoneyGram, and traditional banks still dominate a large share of the African remittance market, but their fees remain among the highest in the world. On average, sending $200 to sub-Saharan Africa costs between 6% and 9% of the amount transferred, compared to a global average of 6.2%. On corridors like France to Cameroon, fees can reach 8.5% when including the exchange rate margin applied by the operator. The United Nations SDG target is to bring these fees below 3%, a threshold that legacy players struggle to meet due to their costly network of physical branches.
| Service | Average Fees | Speed | Africa Coverage |
|---|---|---|---|
| Western Union | 7 – 9% | Minutes to 1 day | Very wide (branches) |
| MoneyGram | 6 – 8% | Minutes to 1 day | Wide (branches) |
| Bank transfer | 5 – 15% + fixed | 3 – 5 days | Limited |
| Mobile Money (Wave, etc.) | 1 – 3% | Instant | Growing |
| ElyonPay Request to Pay | 1.5 – 2.5% | Instant | CEMAC, WAEMU, Kenya |
3Mobile Money as an Alternative
The meteoric rise of Mobile Money in Africa has profoundly transformed the remittance landscape. Platforms like M-Pesa in Kenya, Orange Money in West Africa, and MTN Mobile Money in Central Africa allow recipients to receive money directly on their phones without needing a bank account. In 2024, there were over 850 million active Mobile Money accounts on the continent, with transaction volumes exceeding $800 billion per year. This infrastructure reduces distribution costs to a fraction of what physical branch networks cost, which explains why Mobile Money transfer fees range between just 1% and 3%. For the diaspora, this means money sent arrives faster and in greater amounts in the hands of their loved ones.
4ElyonPay Request to Pay: A Bridge Between the Diaspora and Africa
ElyonPay developed the Request to Pay feature specifically to address the needs of the African diaspora. The concept is simple: a user in Africa creates a payment request from their ElyonPay account and sends it to a loved one abroad via WhatsApp, SMS, or email. The request recipient pays in a few clicks with their bank card or via transfer, and the money is instantly credited to the requester's Mobile Money account or ElyonPay wallet. This reverse mechanism eliminates the complexity of traditional international transfers, removes costly intermediaries, and guarantees full transparency on applied fees. The exchange rates used are interbank rates with a transparent 0.5% margin, well below the hidden margins charged by legacy operators.
5The Regulatory Landscape for Remittances
The regulatory landscape for remittances in Africa is evolving rapidly to keep pace with the rise of digital solutions. The CEMAC zone, regulated by BEAC (Bank of Central African States), adopted new regulations on electronic payment services in 2023 that facilitate fintech entry into the cross-border transfer market. Meanwhile, BCEAO (Central Bank of West African States) has implemented a mobile payment interoperability framework that enables transfers between different Mobile Money operators. At the continental level, the African Continental Free Trade Area (AfCFTA) promotes the establishment of a Pan-African Payment and Settlement System (PAPSS) aimed at reducing intra-African transaction costs. These regulatory developments create a favorable environment for players like ElyonPay while strengthening consumer protection.
6Future Trends in the Remittance Market
The African remittance market is projected to grow to $65 billion by 2030, according to African Development Bank forecasts. Several major trends will shape this evolution in the coming years. First, tokenization and stablecoins pegged to African currencies could further reduce transfer fees by eliminating correspondent banks from the payment circuit. Second, the integration of complementary financial services around transfers, such as savings, micro-credit, and insurance, will transform remittance corridors into full-fledged financial platforms. Third, digital identity and shared KYC will facilitate remote account opening for the diaspora, reducing current friction related to identity verification. ElyonPay is actively investing in these areas to anticipate its users' future needs.
Conclusion
The African diaspora remittance market represents a tremendous opportunity but also a responsibility. Every percentage point saved on transfer fees means hundreds of millions of additional dollars flowing directly into the African economy. Thanks to solutions like ElyonPay Request to Pay, technology is finally delivering on the promise of fast, transparent, and affordable transfers between the diaspora and the continent.
Get started with ElyonPay
Accept Mobile Money and card payments in minutes.
Create your free account