Africa's PAPSS Cuts Payment Costs in 19 Countries

For decades, sending money from Kenya to Zambia meant a detour through banks in New York or London, even though both countries share a continent. That expensive route is finally changing.

The Pan-African Payment and Settlement System launched in 2022 to fix one of Africa's biggest trade headaches. Before PAPSS, a simple business payment between African neighbors often required converting local currency to dollars, then back again, adding up to 20% in fees on some routes.

Now, a merchant in Nigeria can pay a supplier in Ghana directly in local currency. The money arrives in seconds, not days. No dollar conversion needed.

Four years in, the system is hitting its stride. PAPSS now operates in 19 African countries, connecting over 160 commercial banks and 15 national payment networks. In Nigeria alone, 22 major banks including Access Bank, UBA, and Zenith Bank have plugged into the platform.

The impact shows up in the numbers. Sub-Saharan Africa has historically been the world's most expensive region for sending money, with fees averaging 8.45%. The United Nations targets 3%. By cutting out middleman banks in Europe and America, PAPSS is helping close that gap.

The system works elegantly. Someone opens their banking app, enters the recipient's details, and sends money in their local currency. PAPSS validates the transaction, delivers it instantly to the recipient's bank, and the person receives their local currency. Central banks handle the behind-the-scenes settlement later.

The Ripple Effect

The benefits extend beyond convenience. African businesses no longer need to stockpile scarce dollars and euros just to trade with their neighbors. Countries gain more control over their financial flows. Small business owners save money they can reinvest in growth.

Ghana-based project coordinator Paul Gozo remembers when the system first clicked. "I could send money to about 10 colleagues at once from the comfort of my home," he said. While new verification requirements have added some steps in certain corridors, the core promise holds.

The vision is expanding too. PAPSS recently launched PAPSSCARD, aiming to create a continent-wide payment card network. The African Currency Marketplace is building tools for more sophisticated financial services.

Some friction remains. Mobile money integration is still rolling out. Not every bank connection works seamlessly yet. Users in some countries report needing workarounds for certain transactions.

But the foundation is solid. Real-time payment systems in countries like Nigeria have created the infrastructure for PAPSS to build on. As Papa Samba Thiongane, PAPSS's Head of Marketing, noted in January, "Almost all the banks in Nigeria are connected to our system."

What started as a solution to expensive cross-border payments is becoming the backbone of a more connected African economy, one instant transaction at a time.