Executive Summary

With the advancement of digital technology, it’s easy to say that borders no longer exist. This is especially true for Africa, where cross-border transactions are on the rise alongside the need for sophisticated and faster financial systems. While technology tends to take the limelight, it seems that policy winds are the ones driving most of the change.

 

At YoguPay, we go beyond just moving money across borders and enable businesses to interpret and adhere to changes in policies in Africa and beyond. In this first insights report of Money Without Borders for April 2025, we focus on regulatory shifts and the innovation opportunities and roadblocks that are crucial for the future landscape of African cross-border payments.

 

Key Regulatory Highlights

Initiative	What It’s About	Why It Matters
G20 Roadmap for Enhancing Cross-Border Payments	Aims to make cross-border payments faster, cheaper, more transparent, and more inclusive by 2027.	Aligns Africa’s regulators with this roadmap to modernize payment systems.
Pan-African Payment and Settlement System (PAPSS)	An infrastructure put in place to facilitate instantaneous local currency payment across Africa.	Forex cost and transaction speed are improved.
East African Community (EAC) Payment Systems Masterplan	Focal point of integration of the payment system within the East African Community.	Enhances trade and transparency within East Africa.
The African Continental Free Trade Area (AfCFTA)	Strives to abolish trade barriers and create a single market.	Increases demand for seamless payment interoperability.

Overview of Regulatory Shifts Across Africa 

 1. Harmonization of Legal and Regulatory Processes

Payment systems are facilitated where there is regulatory coherence. The effort to implement the G20 Roadmap in Africa is picking up pace, but fragmentation continues to be a barrier. 

 

2. System Integration and Interoperability

Platforms like PAPSS and YoguPay have begun the unbundling of local FX monopolies by enabling cross-border payments in local currencies. This eliminates expensive foreign exchange (FX) intermediaries, which enhances financial inclusion. 

 

3. Public-Private Partnerships (PPPs)

PPPs have now shifted from optional to foundational. Collaborations with fintechs for payment systems have proven that regulation inspires innovation with a focus on the user experience.

 

Regulatory Frictions: Persistent Challenges 

1. Regulation Divisions

Even with global efforts to consolidate regulatory policies, fragmentation persists, with countries working off differing sets of rules. This remains problematic for businesses operating in multiple jurisdictions since they have to deal with sophisticated compliance management.

 

2. Compliance Costs

Varying regulatory requirements across regions necessitate managing different standards for AML, CTF, and data protection laws, increasing operational costs, and posing challenges for smaller players.

 

3. Security and Privacy Concerns

The pace of digitization within the payment industry greatly increases the concerns regarding data security and privacy. Complying with various data privacy laws, especially the General Data Protection Regulation (GDPR), as well as equivalent systems from some African countries, is fast emerging as essential for business.

 

Country-by-Country. What’s Changing?

🌍 Africa

African Continental Free Trade Area (AfCFTA) – Unlocking Seamless Cross-Border Transactions

The AfCFTA is introducing unified trade and payment frameworks aimed at reducing frictions across African borders, enabling businesses to transact more efficiently. This paves the way for integrated cross-border payment ecosystems and direct currency exchanges between African countries.

 

🇿🇦 South Africa – SARB Seeks Feedback on Cross-Border Payment Reforms

The South African Reserve Bank (SARB) has released a consultation paper proposing enhancements in national payment interoperability. The objective is to streamline cross-border payment systems by improving efficiency and lowering costs. Stakeholders have until today, April 30, 2025, to submit feedback.

 

🇰🇪 Kenya – Progressing Toward Crypto Clarity

Kenya has introduced the Virtual Assets Service Providers Bill 2025, a regulatory framework establishing governance for crypto assets and service providers. This aligns with continental trends toward legal clarity in the digital asset space.

 

🇿🇦 South Africa – Crypto Travel Rule Enforcement Deadline Looms

The Financial Intelligence Centre (FIC) mandates that all Crypto Asset Service Providers (CASPs) implement the Travel Rule by April 30, 2025. This includes full disclosure of sender and receiver information for digital asset transactions, adhering to FATF Recommendation 16.

 

🇬🇧 United Kingdom

PSR-FCA Merger – A Regulatory Consolidation in Progress

The UK government plans to merge the Payment Systems Regulator (PSR) into the Financial Conduct Authority (FCA) to streamline compliance and improve regulatory efficiency. While aimed at fostering growth, some stakeholders remain cautious about its long-term impact.

 

FCA Tightens Fraud Safeguards on Push Payments

The FCA has empowered Payment Service Providers to delay outbound Authorised Push Payments (APPs) by up to four business days if fraud is suspected. This rule seeks to deter financial crime while maintaining transaction integrity.

 

🇪🇺 European Union

 

ECB Advances Digital Euro & SEPA Instant Integration

The European Central Bank (ECB) is pushing forward with digital euro regulations and continues adoption of SEPA Instant Credit Transfer, enhancing real-time cross-border Euro transactions and fostering a secure, fast digital payment infrastructure.

 

ECB Cuts Rates – Implications for FX and Settlements

The ECB’s recent interest rate cuts, driven by inflationary pressures and geopolitical uncertainty, may impact FX volatility and cross-border settlement dynamics for EU-based businesses.

 

Project Nexus – Connecting Fast Payment Systems Globally

The Bank for International Settlements (BIS) and ECB are collaborating on Project Nexus, an initiative to interlink Real-Time Payment (RTP) systems across jurisdictions. This global infrastructure aims to significantly reduce cost and delay in international payments.

 

🇮🇳 India

New FX Rules Empower Trade Settlements in Foreign Currencies

The Reserve Bank of India has implemented updated foreign exchange regulations, allowing businesses to conduct trade settlements in major global currencies. This reduces conversion friction and opens new corridors for exporters.

 

UPI Goes Global – FATF Lobby to Ease Cross-Border Compliance

India is lobbying the Financial Action Task Force (FATF) to ease restrictions on the Unified Payments Interface (UPI) for international use, aiming to position UPI as a competitive global payment rail.

 

🇺🇸 United States

OCC Clarifies Crypto Custody and Stablecoin Roles for Banks

The Office of the Comptroller of the Currency (OCC) published Interpretive Letter 1183, affirming that national banks may provide custody for digital assets and hold reserves for stablecoins, offering long-awaited regulatory clarity.

 

🇨🇳 China

Yuan-Powered Trade: A Strategic Shift from USD

The People’s Bank of China is accelerating efforts to internationalize the yuan by urging firms to prioritize it in cross-border settlements—a move designed to reduce dependency on the US dollar amid intensifying trade rivalries.

 

🌐 Global

FSB Launches Forum to Harmonize Cross-Border Payments Data

On March 27, 2025, the Financial Stability Board (FSB) launched a global Forum on Cross-Border Payments Data to address legal inconsistencies and improve data interoperability, safety, and efficiency in international payments.

 

Compliance Radar

• Crypto Travel Rule (South Africa): CASPs must now disclose transaction metadata for senders and receivers.

• Kenya’s VASP Bill: Seeks to standardize digital asset regulations and improve sector accountability.

• UK’s FCA Push Payment Rule: Provides new consumer protection measures against financial fraud.

 

Strategic Takeaway

The African cross-border payments market is at an inflection point. Navigating the regulations can still be complicated, but there’s a lot of value that can be unlocked if you play it smart. YoguPay’s mission is to empower businesses to move money with confidence across borders faster, safely, and in compliance with growing regulatory demands.