Two African Banks, KCB and Ecobank, signed with the Pan-African Payment and Settlement System (PAPSS). The move will enhance cross-border payment across Africa.
The deals were signed during the 30th Afrexim Bank Annual Meeting (AAM) held in Accra, Ghana.
The Pan-African Payment and Settlement System (PAPSS) enables the efficient flow of money securely across African borders. Thus, it contributes to financial integration across the continent. In order to enable instant payments across African borders, PAPSS supports three core processes: instant payment, pre-funding, and net settlement.
The platform was developed in collaboration with the African Export-Import Bank (Afrexim Bank). Its objective is to enhance trading under the Africa Continental Free Trade Area (AfCFTA).
PAPSS to Sign Up All Commercial Banks
Ecobank, a Pan African Bank, has affiliates in 33 countries with over 32 million customers. As such, the deal will streamline and expedite the transfer of funds while ensuring transparency and compliance for its customers.
The Chief Executive Officer, of PAPSS, Mr. Mike Ogbalu III, said, “Having the cooperation of Ecobank Group, one of the major banks in Africa, is a huge honour, but more importantly, it shows that PAPSS is the payment system that will transform the way that people in Africa conduct cross-border transactions. To this end, I appreciate the bank’s management for having faith in PAPSS.”
The Kenya Commercial Bank (KCB) seeks to guarantee speedy, affordable, and reliable transactions due to the partnership. Moreover, they believe the partnership will give KCB customers greater economic opportunities in the continent.
KCB Group CEO, Paul Russo said: “With this agreement, we bring on board our payments and collections expertise spanning over 120 years. This means that our customers will now have access to vast economic opportunities that will deliver multiple advantages and efficiencies especially when conducting Intra-African trade payments.”
By the end of 2025, all commercial banks in Africa are expected to sign with PAPSS. However, African Central Banks have a deadline of 2024. The platform currently has 8 Central Banks and 28 commercial banks signed up.