Intra-trade alliance established between Onafriq and PAPSS announced
Revolutionizing Cross-Border Payments in Africa: The Pan-African Payments Settlement System (PAPSS)
The Pan-African Payments Settlement System (PAPSS) is transforming the way African nations conduct cross-border transactions. Launched by Afreximbank in collaboration with the African Union in 2019, PAPSS is a centralized financial market infrastructure designed to simplify cross-border transactions in local African currencies.
As of mid-2025, 16 African countries have been integrated into PAPSS, with Morocco recently joining, bringing the total to 17. The system is expanding its coverage progressively across the continent, aiming for continent-wide integration under the mandate of the African Union and Afreximbank.
PAPSS operates in collaboration with African central banks to provide payment and settlement services. Commercial banks and licensed payment service providers across member countries connect as participants, allowing for seamless and instantaneous cross-border transactions.
One of the key advantages of PAPSS is its use of blockchain technology. This technology resolves the challenge of currency incompatibility and reduces delays, allowing payments that used to take days to clear to happen within seconds or minutes. The system also supports instant transfers with no fees charged to the receiving party, improving cost efficiency and security for intra-African trade and finance.
The service expands financial inclusion by fostering transparency, trust, and ease of settlement across borders, facilitating trade within the African Continental Free Trade Area (AfCFTA) framework. For instance, users on the MTN platform can initiate cross-border payments by dialing *170# on their mobile devices.
A recent demonstration of the PAPSS system showed the real-time process of using the system. The live payment involved sending money from a wallet in Ghana (using Cedis) to a wallet in Nigeria, which received the funds in Naira. The event was attended by Dare Okoudjou (CEO of Onafriq), Mike Ogbalu (CEO of PAPSS), and Ike Aneson (Country Director of Onafriq for Gambia and Ghana) to discuss the partnership.
The PAPSS system currently integrates countries including Nigeria, Ghana, Liberia, The Gambia, Guinea, Sierra Leone, Kenya, Zimbabwe, Zambia, Djibouti, and Morocco. The full list of the 16 countries was not explicitly detailed in the sources, but ongoing adoption is coordinated by Afreximbank and the African Union, aiming for continent-wide integration eventually.
By enabling transactions directly in local currencies through a centralized, blockchain-based platform working with central banks and commercial banks across Africa, PAPSS offers real-time, cost-effective, and secure cross-border payments. This development is a significant step towards enhancing trade and economic relations within the African continent.
- The integration of technology within PAPSS, such as blockchain, addresses the issue of currency incompatibility and significantly reduces delays in cross-border payments, transforming the African finance industry.
- By operating as a centralized platform for business transactions, PAPSS is leveraging technology to promote trade efficiency and foster growth in various African business sectors, ultimately bolstering the continent's technological industry.
