PAPSS Payment System Gains Traction Across 48 Countries

Revolutionizing African Payments

The Pan-African Payment and Settlement System (PAPSS) is transforming cross-border commerce by enabling African businesses to trade in their local currencies, eliminating the need for expensive US dollar conversions.

How PAPSS Works

PAPSS operates as a centralized payment infrastructure that:

• Connects African central banks and commercial banks
• Enables instant cross-border payments
• Settles transactions in local currencies
• Reduces dependency on foreign exchange

Cost Benefits

Traditional cross-border payments in Africa involved:

• Converting local currency to USD or EUR
• High foreign exchange fees (3-5% per transaction)
• Multiple intermediary banks taking cuts
• Settlement delays of 3-5 days

With PAPSS:

• Direct local currency to local currency conversion
• Fees reduced by up to 80%
• Near-instant settlement
• Enhanced transparency and tracking

Adoption Progress

As of January 2025:

• 48 countries have joined the PAPSS network
• 85+ commercial banks connected to the platform
• $2.3 billion in transaction value processed
• 200,000+ transactions completed successfully

Business Applications

PAPSS supports various use cases:

1. Trade Payments: Importers paying exporters directly
2. Remittances: Lower-cost money transfers
3. E-commerce: Cross-border online shopping
4. Service Payments: Professional services and subscriptions

AfCFTA Integration

PAPSS is a critical enabler of the African Continental Free Trade Area:

• Reduces one of the biggest barriers to intra-African trade
• Supports the AfCFTA goal of increasing intra-continental trade
• Complements tariff reductions with payment infrastructure
• Enables small businesses to participate in regional trade

Technical Infrastructure

The system is built on:

• Secure blockchain technology
• Integration with existing banking infrastructure
• Compliance with international payment standards
• Real-time gross settlement capabilities

Success Stories

Ghana-Kenya Trade:
A Ghanaian cocoa exporter previously paid $3,500 in fees to receive payment from a Kenyan buyer for a $100,000 shipment. With PAPSS, the same transaction costs less than $500.

Nigeria-South Africa Services:
A South African consulting firm billing a Nigerian client can now receive payment in Rand directly, saving 3-4% on currency conversion.

Future Developments

Planned enhancements for 2025-2026:

• Integration with mobile money platforms
• Support for central bank digital currencies (CBDCs)
• Enhanced fraud detection and security
• Expansion to diaspora remittance corridors

Getting Started with PAPSS

Businesses interested in using PAPSS should:

1. Check if their bank is a participating member
2. Register for PAPSS-enabled payment services
3. Update invoicing to include local currency options
4. Train finance staff on the new payment processes

PAPSS represents a fundamental shift in how Africa does business with itself, removing the colonial-era requirement to route payments through Western financial centers and returning control to African institutions.