Oui Capital, a prominent early-stage venture capital firm, has issued a bold call for investors to refocus their attention on the infrastructure supporting Africa’s cross-border payments, rather than the consumer-facing applications that currently dominate the market. In a new report, the firm highlights that while mobile money apps and neobanks have driven much of the narrative in recent years, the true enabler of sustainable growth lies in the foundational systems that underpin these services. With Africa’s cross-border payments market projected to surge from $329 billion in 2025 to $1 trillion by 2035, the report urges stakeholders not to overlook this critical layer.
The Backbone of Digital Financial Services
Oui Capital’s report emphasizes that infrastructure — including foreign exchange (FX) liquidity layers, payment APIs, and compliance protocols — plays a decisive role in enabling seamless financial transactions across the continent. These elements, often invisible to the average consumer, are essential for solving long-standing inefficiencies in cross-border payments and remittances. Without robust infrastructure, even the most popular consumer apps struggle to scale or deliver meaningful cost advantages.
Persistent Inefficiencies in the Current System
Despite Africa’s growing digital financial ecosystem, cross-border transactions remain costly and slow due to persistent systemic flaws. The reliance on the US dollar for intra-African settlements, coupled with fragmented currency exchange systems and inconsistent Know Your Customer (KYC) regulations, adds friction to every transfer. Limited interoperability between banks and mobile money platforms further exacerbates these challenges, keeping transaction costs high and financial inclusion limited.
Emerging Solutions and Key Infrastructure Players
A new wave of fintech infrastructure companies is rising to address these gaps by creating interoperable, efficient systems for cross-border transfers. Firms such as Flutterwave, Onafriq (formerly MFS Africa), and Thunes are developing APIs that bridge disparate banking and mobile money networks, offering a more integrated and affordable way to move funds across borders. Additionally, regional initiatives like the Pan-African Payment and Settlement System (PAPSS) aim to facilitate real-time transactions in local currencies, further reducing dependency on external intermediaries.
Economic Gains from Infrastructure Investment
Oui Capital estimates that fixing cross-border payment infrastructure bottlenecks could unlock over $10 billion annually in cost savings and economic value. These improvements would not only benefit fintech providers and consumers but also drive broader economic integration and trade across the continent. By resolving these pain points, infrastructure investments have the potential to yield outsized returns and long-term impact for investors and local economies alike.
Why Infrastructure Beats Consumer Apps in the Long Run
The report also underscores the limitations of consumer-facing fintechs, many of which operate on wafer-thin margins ranging from 0.5% to 2% per transaction. While such apps can scale user bases quickly and offer intuitive monetisation paths, their profitability is often constrained by intense competition and price wars. In contrast, infrastructure providers typically build sticky, business-to-business models that generate recurring revenue from APIs, FX spreads, and settlement fees, making them more resilient and scalable.
Shifting Investor Sentiment Amid a Funding Crunch
As global funding becomes more conservative, investors are increasingly prioritising fintech models with clear paths to profitability and long-term viability. Oui Capital suggests that infrastructure players, thanks to their recurring revenues and mission-critical services, are becoming more attractive bets. The report reflects a broader trend in African tech investment, where the emphasis is gradually shifting from user growth at all costs to sustainable business fundamentals.
Oui Capital’s message is clear: the future of Africa’s cross-border payments will be built not on flashy apps, but on the infrastructure that enables them to function reliably and at scale. For investors willing to look beyond surface-level growth metrics, infrastructure offers both stability and substantial upside. As Africa’s fintech landscape matures, the firms building its digital rails may prove to be the continent’s most valuable assets.