Stablecoins, Remittances, and the Future of Cross-Border Payments: Insights from Jonathan Katende
In this episode, “Stablecoins, Remittances, and the Future of Cross-Border Payments: Insights from Jonathan Katende”, of Talking Success, The Best Fintech Podcast, Darren Franks sat down with Jonathan Katende, CEO of Lipa World, to unpack how stablecoins are reshaping remittances, commerce, and financial access across Africa and beyond.
While crypto has often been painted as speculative and risky, stablecoins – digital assets pegged to fiat currencies – offer a new layer of reliability. Lipa World is building practical solutions that make stablecoins usable for everyday payments, tackling the long-standing problem of off-ramping digital assets into real-world value.
Cross-border payments have always been expensive, slow, and often inaccessible for the very people who need them most. Migrant workers sending money home face excessive fees, compliance barriers, and delays that strip value from remittances and strain family support systems. Meanwhile, businesses and freelancers trading internationally are burdened by foreign exchange costs, limited payment rails, and endless paperwork.
A Journey From Global Citizen to Fintech Builder
Jonathan didn’t start out in New York, though that’s where he’s now based. Like many entrepreneurs in the payments and blockchain space, his path was shaped by migration, international experience, and a deep awareness of the pain points in cross-border finance.
Having lived in multiple regions, Jonathan saw firsthand the barriers faced by migrants trying to move money, open bank accounts, or simply access financial services in a new country. These challenges became the foundation for Lipa World’s mission: making money movement simple, affordable, and borderless.
The Big Problem: Remittances and Off-Ramping
At the heart of Lipa World’s vision is one of the thorniest challenges in crypto adoption: off-ramping.
Sending stablecoins across borders is straightforward. But what happens when the recipient wants to actually use that value? For years, the conversion process into local currency or spendable vouchers has been clunky, expensive, or outright unavailable.
Jonathan explains Lipa World’s approach with a practical example:
Imagine a worker in the U.S. wants to send money back to their family in South Africa.
Instead of transferring USDC or USDT directly, which may trigger regulatory red flags, they send a voucher redeemable at local merchants like Shoprite.
This allows families to spend directly, without having to first cash out at a bank or exchange.
By focusing on usability, Lipa World bridges the gap between blockchain rails and real-world spending.
Navigating Regulation: The Elephant in the Room
No conversation about stablecoins in Africa can avoid regulation. Countries like South Africa enforce strict exchange controls. For regulators, the idea of bypassing traditional banking rails with dollar-pegged stablecoins raises alarms.
Jonathan acknowledges this reality. Lipa World operates within existing frameworks by partnering with regulated entities, building transparency into flows, and ensuring compliance with Know Your Customer (KYC) requirements. Rather than fighting regulators, the company positions stablecoins as a complementary rail – one that can reduce friction without undermining oversight.
“Adoption won’t succeed without regulatory alignment”
De-Dollarisation and the Future of Currency in Africa
The conversation naturally turned to one of the most debated topics in global finance: de-dollarisation. With BRICS countries exploring alternatives to the U.S. dollar and regional initiatives like PAPSS (Pan-African Payment and Settlement System) gaining traction, could a Pan-African stablecoin emerge?
Jonathan’s view is pragmatic:
- The U.S. dollar still dominates trade flows across Africa.
- CBDCs (central bank digital currencies) will likely be rolled out country by country, but interoperability will remain a challenge.
- A regional stablecoin is technically possible, but its success would depend on political will and cross-border trust.
- For now, the dollar-pegged stablecoin remains the most practical solution for remittances and gig-economy payments.
Stablecoin Competition: What Sets Them Apart?
Circle’s USDC, Tether’s USDT, Ripple’s initiatives – the stablecoin landscape is crowded. Darren pressed Jonathan on what really differentiates one from another.
His response highlights three dimensions:
- Regulatory acceptance: Some countries ban or restrict certain stablecoins. A solution must respect local rules.
- Liquidity and infrastructure: The more on- and off-ramps available, the more usable the stablecoin.
Transparency and trust: How reserves are managed, audited, and disclosed matters enormously for long-term credibility.
Ultimately, for consumers and businesses, the best stablecoin will be the one they can actually use seamlessly.
Africa’s Leapfrog Moment: Lessons from Mobile Adoption
One of the most powerful analogies raised in the discussion was Africa’s leapfrog into mobile. Without fixed-line infrastructure, the continent adopted mobile technology at scale far faster than developed markets.
Jonathan believes stablecoins could follow a similar trajectory. With limited legacy banking infrastructure in many regions, Africa may be better positioned to adopt blockchain-based payments than markets weighed down by entrenched systems.
The challenge? Building trust. While younger, mobile-first generations may quickly adapt, older populations remain skeptical. Education, user experience, and partnerships with trusted institutions will be critical.
The Invisible Rail: Making Stablecoins Seamless
One of Darren’s strongest points was that consumers don’t need to understand the technology; they just need it to work.
When you tap a phone to pay, very few people know how near-field communication works, or what rails carry the transaction. They only care that the payment goes through. Stablecoins will succeed when they reach that same level of invisibility:
- For the remitter: low fees, instant settlement.
- For the recipient: immediate usability, whether as cash, vouchers, or direct spending.
- For businesses: smoother global payments without FX headaches.
The utopia isn’t branding everything “stablecoin.” It’s creating experiences so seamless that end users don’t even realize they’re using blockchain rails.
Migrant Workers and Financial Inclusion
The conversation also spotlighted migrant workers, a group historically excluded from mainstream banking.
Traditional banks often require proof of address, national IDs, and other documents many migrants don’t have. Stablecoin wallets, paired with passport-based KYC, could offer migrants access to digital financial services without the red tape.
This isn’t just about remittances. It’s about dignity and participation in the economy. From savings to cross-border trade, migrants could finally access the tools they need to build better lives.
The Gig Economy: Getting Paid Across Borders
Another booming segment in Africa is the gig economy. Freelancers, coders, designers, and consultants often work for clients overseas. But getting paid remains painful.
- Banks charge high fees for international wires.
- Platforms impose additional conversion costs.
- Settlement takes days, if not weeks.
Jonathan points out that stablecoins can make gig payments instant and borderless, allowing freelancers to receive dollars, then spend locally through Lipa World’s vouchers or off-ramps.
This isn’t just convenience. It’s about empowering a new generation of African talent to participate in the global digital economy without being penalised by outdated systems.
What’s Next for Lipa World
Lipa World is still early in its journey, but the vision is ambitious:
- Expand merchant voucher networks across Africa.
- Strengthen compliance frameworks to work hand-in-hand with regulators.
- Unlock seamless stablecoin access for migrants, freelancers, and businesses alike.
Jonathan emphasizes that the goal isn’t to “replace banks,” but to make cross-border payments faster, cheaper, and fairer.
Stablecoins at the Tipping Point
The rise of stablecoins isn’t just a trend, it’s a fundamental shift in how money moves globally. From remittances to the gig economy, from migrant workers to merchants, stablecoins offer a way to reduce friction and restore value to the people who need it most.
Lipa World’s approach – focusing on usability, compliance, and trust – highlights the path forward. As with mobile adoption two decades ago, Africa may once again leapfrog legacy systems and embrace the future of finance on its own terms.
For stablecoins to truly succeed, they must disappear into the background, invisible rails powering seamless experiences. And if Jonathan Katende’s vision comes true, that future may arrive sooner than we think.
FAQ's
Lipa World is a fintech company that uses stablecoins to make cross-border payments faster, cheaper, and more accessible. Instead of relying on costly bank transfers, Lipa World allows users to send value across borders instantly, and recipients can spend it directly through merchant vouchers or other off-ramps.
Traditional remittances are expensive and slow, often charging 7–10% in fees. With Lipa World, senders can transfer stablecoins that are instantly redeemable as vouchers at local merchants (like Shoprite in South Africa). This removes delays, cuts costs, and ensures families can access funds in a usable way right away
Yes. Lipa World partners with regulated entities and follows compliance standards, including Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. This ensures transfers are secure and aligned with local regulatory frameworks while still being faster and cheaper than traditional banking rails.
- Migrant workers who need to send money home affordably.
- Freelancers and gig economy workers getting paid by overseas clients.
- Families in Africa who want seamless access to remittances.
- Merchants who accept Lipa World vouchers as payment.
Lipa World primarily operates using USD-pegged stablecoins such as USDC. The reason: they’re globally recognized, liquid, and trusted. Recipients don’t need to worry about crypto complexity, they simply redeem vouchers or spend locally, while the blockchain handles the transfer behind the scenes.