The African Union, African Export-Import Bank (Afreximbank), and African Continental Free Trade Area (AfCFTA) launch the Pan-African Payment & Settlement System (PAPSS). The PAPSS is a cross-border centralized payment & settlement infrastructure for intra-African trade & commerce. It will facilitate cross-border payment transactions and tackle the challenges of the African online commercial market due to different currencies (over 41 known currencies).
The service will also solve the current high-cost & time-consuming bank-related activities by using an easy, low-cost, and risk-controlled payment clearing and settlement system with lower time & liquidity requirements and a fortified cross-border payment oversight.
The PAPSS is expected to simplify transactions within Africa and reduce third currencies (dollars, pounds, and euros) for intra-African trade. This launch is a significant stage representing the combined efforts in creating an infrastructure that boosts payment gateway across West Africa.
With PAPSS’ real-time reliable and instant payments, Africans can participate in shopping, money transfer, salary payments, stock dealings, and high-value business transactions. This is predicted to increase cross-border payment volume. To ensure the capability of the complete payment, users are required to agree to a pre-funding arrangement consisting of a Real-Time Gross Settlement (RTGS) system of central banks.