Pesalink has partnered with the Pan-African Payment and Settlement System (PAPSS) to enable real-time cross-border payments.
The partnership will allow instant 24/7 cross-border payments from PAPSS participants into banks and mobile money operators within the Pesalink network in Kenya. Transactions will be settled in local currencies and this will help reduce the need for correspondent banking arrangements and dependence on foreign reserve currencies such as the US dollar.
PAPSS is an initiative of the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat. It facilitates cross-border payments between African countries. Under the new arrangement, Pesalink will serve as a Technical Connectivity Provider.
This means more than 80 Kenyan banks, fintechs, SACCOs and telcos connected to Pesalink will gain access to over 160 commercial banks and fintechs on the PAPSS platform across Africa.
Cross-border payments in Africa remain costly and slow. According to the World Bank’s 2023 Remittance Prices report, sending money across African borders costs an average of 7–8% of the transaction value — above the global average of 6–7%. Settlement can also take between three and seven business days.
The Pesalink–PAPSS integration aims to reduce transaction costs, speed up settlement times and improve efficiency for individuals, SMEs and businesses engaged in regional trade.
Speaking during the partnership signing at Pesalink’s Nairobi offices, PAPSS CEO Mike Ogbalu III said:
“For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential. Pesalink is the first switch we’ve piloted for transaction termination in Kenya, and we are already seeing greater adoption by opening more channels for seamless, local-currency cross-border payments across Africa.”
Pesalink CEO Gituku Kirika added:
“Kenyan banks will now be able to offer faster, cheaper cross-border payments. They will be helping their customers grow more regional trading relationships and thrive in a more integrated digital economy.”
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Also Read: How PAPSS Is Simplifying Africa’s Cross-Border Payments Landscape