50% margin gains for SMEs? Analysing Flutterwave’s Polygon integration across Africa

Flutterwave has announced it will begin using Polygon, an Ethereum Layer 2 blockchain network, as its default infrastructure for cross-border payments across Africa. The move, confirmed on October 30, 2025, marks the company’s strongest shift yet toward blockchain-based settlement for individuals and businesses sending money across borders.

The Lagos-headquartered company, valued at more than $3 billion and active in 34 African countries, currently processes billions of dollars in payments annually through traditional channels.

The new pivot introduces stablecoin-based settlements on Polygon, enabling real-time payouts and significantly lower transfer costs for both remittances and business transactions.

Chief Executive Officer Olugbenga Agboola said the company’s goal is to make international payments faster and more affordable across the continent.

A RemitSCOPE Africa dashboard indicates that remittances into Africa totalled an estimated $96.4 billion in 2024.. Yet sending money into the region remains among the most expensive in the world, with fees averaging 6–10%, and transfers often taking several days to clear.

Small and medium-sized businesses, responsible for more than 80% of employment across Africa, face delays and high fees when paying international suppliers or receiving export proceeds. Flutterwave has previously explored blockchain as a solution to these challenges, but this is the first time it has selected a dedicated default blockchain partner.

Why would Flutterwave choose Polygon?

Polygon acts as a scaling network for Ethereum, offering transaction fees below $0.01 and processing speeds significantly faster than traditional payment systems. Its technology supports privacy-preserving proofs required for regulatory compliance, a key concern in markets such as Nigeria and Kenya, where authorities have tightened crypto oversight in recent years.

Stablecoins such as USDC will be the primary settlement asset. Unlike volatile cryptocurrencies, these tokens are pegged to stable currencies like the US dollar, reducing exposure to price swings.

Under Flutterwave’s new framework, funds can be sent via stablecoins, instantly redeemed into local fiat currencies, and used within existing channels such as bank accounts and mobile money wallets.

Early pilots indicate that a $1,000 transfer from the UK to Lagos could see fees fall from around $70 to under $5, based on Polygon transaction cost benchmarks. Applied at scale, this could preserve $7–10 billion annually in value currently lost to intermediaries and settlement delays.

Implications for inclusion and trade

The integration could help expand financial access to Africa’s large unbanked and underbanked population. Polygon supports interoperability with mobile money platforms, and funds can move with fewer identity requirements than traditional bank-led transfers, while still meeting compliance demands.

This aligns with the African Continental Free Trade Area (AfCFTA) objective of increasing intra-African trade and reducing barriers that disproportionately hinder small exporters.

Businesses relying on cash-flow-sensitive operations, such as agricultural producers, stand to benefit from faster settlement cycles that improve liquidity.

Stablecoin settlement also reduces exposure to local currency volatility. In economies battling inflation and currency shortages, such as Zimbabwe and Ethiopia, receiving payments in a dollar-pegged asset could protect value before conversion to local tender.

The partnership comes as financial regulators across Africa continue to evaluate blockchain-based payment models. Polygon’s tooling includes features enabling cross-chain audits and traceability, which could ease concerns among central banks overseeing capital flows and anti-money-laundering controls.

Flutterwave projects that pilot deployments with selected regional partners will begin in 2025, with a broader commercial rollout in 2026. The company already supports global brands, including Uber, and promises to extend instant gig-economy payouts through the new rails.

Challenges ahead

Success will depend on merchant adoption, regulatory clarity, and reliable internet infrastructure across rural and peri-urban communities. Security and price-feed reliability for stablecoins remain ongoing industry concerns. Traditional banks may also resist systems that bypass existing correspondent networks.

Even so, the collaboration signals a significant shift in how African cross-border transfers may operate in the coming years. If the rollout meets expectations, blockchain-based payments could become a core part of Africa’s financial infrastructure rather than an experimental alternative.