NAIROBI, Kenya, Feb 25 – Instant payment network Pesalink is banking on its partnership with Pan-African Payment and Settlement System (PAPSS) to simplify cross-border payments and accelerate regional financial integration.
The partnership enables instant, 24/7 transfers from PAPSS participants directly into banks and mobile money operators on the Pesalink network in Kenya, all settled in local currencies.
The partners say the move removes complex correspondent banking requirements and reduces dependence on foreign reserve currencies.
PAPSS, an initiative by the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, facilitates payments between African countries.
Pesalink has become a Technical Connectivity Provider, connecting over 80 Kenyan banks, fintechs, SACCOs, and telecom operators to more than 160 commercial banks and fintechs across the PAPSS platform.
Cross-border payments in Africa remain costly and slow.
The 2023 World Bank Remittance Prices report shows transferring money across African borders costs 7–8 percent of the transaction value on average, above the global average of 6–7 percent, with settlements taking three to seven business days.
The Pesalink-PAPSS partnership is expected to reduce costs, speed up settlements, and enable individuals, SMEs, and businesses to send money more efficiently across borders.
“For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential,” said PAPSS CEO Mike Ogbalu
“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.”
