Crypto-currencies, especially stablecoins, are expected to move from early experimentation to mainstream use among African merchants over the next two to three years. The shift comes as regulatory uncertainty eases and customers become more familiar with crypto transactions.
This is according to Ezeebit, a merchant payment infrastructure company that enables retailers and online merchants to accept crypto and stablecoins from any wallet and settle into fiat (a regulated and legal method of converting crypto-currency back into government-issued currency). The company forecasts exponential growth in crypto adoption this year.
“Adoption will hit hard this year, and the curve will be exponential rather than gradual,” says Daniel Katz, co-founder and CEO at Ezeebit. “Fortunately, the lag between regulation being written and its impact being felt is finally closing. At the same time, banks and payments players are actively building tokenisation and stablecoin projects, and rand-backed stablecoins are beginning to reach ordinary users. The inflection point is not years away, it is here.”
Ezeebit cites research by blockchain data platform Chainalysis showing that between July 2024 and June 2025, sub-Saharan Africa recorded 52% year-on-year growth. The region saw over $205 billion in on-chain value, making it the world’s third fastest growing crypto market. On-chain value refers to the total value of crypto transactions recorded directly on public blockchains over a given period.
SA contributed an estimated $35 billion to $40 billion of that total, driven by strong stablecoin usage and increased institutional activity. Stablecoins now account for more than 45% of all crypto volume in the region, largely because they help solve cross-border trade and merchant payment challenges.
Both Katz and Christo de Wit, country manager for SA at Luno, say they provide dollar-denominated value storage and transfer without the volatility of Bitcoin or Ethereum. They also avoid the friction and cost of traditional forex channels.
De Wit says crypto adoption in Africa is entering a more mature phase, though growth will likely be gradual. “We’ve seen growing use cases beyond trading – including cross-border transfers, hedging against currency volatility and treasury diversification – which signal a shift from experimentation towards practical utility.
“Stablecoins are particularly important in this evolution because they combine many of the benefits of blockchain technology, such as faster settlement and lower transaction costs, with price stability. That makes them more suitable for payments and business transactions than highly volatile crypto,” he adds.
However, adoption typically happens in waves rather than overnight. “Merchant uptake will depend on factors such as regulatory clarity, customer demand, ease of integration and trust in service providers. We expect steady growth rather than a single tipping point,” says De Wit.
Regulatory certainty
Katz argues that regulatory certainty will accelerate adoption, citing CASP licensing in SA, Kenya’s VASP Act and Nigeria’s SEC oversight frameworks.
CASP (crypto asset service provider) licensing is a directive from the Financial Sector Conduct Authority (FSCA) requiring crypto operators to comply with the Financial Advisory and Intermediary Services (FAIS) Act.
Kenya’s VASP Act, enforced in late 2025, regulates fintech and other online monetary services, including crypto-currency.
De Wit notes that SA has clarified several grey areas. In October 2022, the FSCA declared crypto assets as “financial products” under the FAIS Act. The CASP licensing regime began in June 2023. The FSCA has since approved about 300 CASP licences out of 512 applications, creating a regulated ecosystem. In April 2025, the Financial Intelligence Centre implemented the Travel Rule for crypto transfers, aligning with international AML/CFT standards.
“In many jurisdictions, including South Africa, regulators are increasingly focused on integrating crypto into existing financial frameworks rather than treating it as an entirely separate system,” says De Wit. “Greater clarity tends to increase trust, attract institutional participation and encourage responsible innovation. Over time, this helps normalise crypto alongside traditional financial services.”
Challenges remain
Despite increased activity and clearer regulation, challenges remain, particularly for hesitant merchants. Katz explains: “They worry about price volatility between payment and settlement, are unsure who really carries that risk, and fear messy reconciliation if funds don’t arrive predictably in local currency. Regulation and compliance add to the anxiety, because even as rules mature, business owners are unclear whether they or the provider sit in the regulators’ sights.”
Perception is another hurdle. Crypto can appear technically complex and operationally heavy to non-specialists. Many believe customer demand is limited because shoppers rarely request it. Katz adds: “Taken together, those concerns make sticking with familiar card and bank rails feel safer than experimenting with a system they don’t yet completely trust.”
De Wit adds that a properly designed system addresses most concerns. “The transaction experience is identical to card or QR payments from the merchant's perspective. There's no volatility exposure, no technical burden and settlement happens in rands through normal banking channels. The merchants who've integrated crypto payments, including Pick n Pay and smaller retailers, report that it's simpler than expected and it opens them up to a new customer segment,” he says.
Luno believes adoption will follow the typical path of financial technologies: early movers test use cases, infrastructure improves and broader participation follows once benefits outweigh friction.
Katz advises merchants to choose solutions offering omnichannel, direct-to-merchant integration, with compliance and crypto complexity handled in the background. He believes the debate has shifted from “if” to “when”, especially for merchants in cross-border commerce, digital goods, remittances and forward-thinking retail.
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