PAPSS accelerates push for continent-wide payment adoption

The Pan-African Payment and Settlement System is shifting from network-building to large-scale adoption, targeting faster transaction growth as its reach extends across more than 30 African countries.

PAPSS chief executive Mike Ogbalu III said the system’s next strategic phase, beginning in 2027, will focus on activating its expanding network, widening use among banks, fintechs and businesses, and developing high-volume payment corridors. The platform now connects 24 national and regional central banks, more than 200 commercial banks and payment service providers, and 16 payment switches.

Through partnerships, PAPSS says its termination footprint extends to more than 300 financial institutions, giving participants access to a broader network for receiving cross-border payments. About 10 additional countries have joined the ecosystem during 2026, with further additions expected before the end of the year.

Transaction activity has risen sharply as the network expanded. PAPSS said volumes increased by about 1,000 per cent between comparable periods in 2025 and 2026, while the value of transactions rose by roughly 120 per cent. Nigeria was a major contributor, with volumes increasing by about 1,100 per cent and transaction values by 125 per cent over the same comparison period.

Ogbalu said the first phase had concentrated on constructing infrastructure, linking institutions and establishing confidence in the system. “As we move into our next phase from 2027, our focus will increasingly shift towards activating that network, deepening adoption and taking transaction growth to scale,” he said at a media briefing in Lagos.

PAPSS enables participating institutions to send and settle cross-border payments in African currencies, reducing the need for transactions to be routed through correspondent banks outside the continent or converted first into a third currency. The system was developed by the African Export-Import Bank in partnership with the African Union and the African Continental Free Trade Area Secretariat.

The platform says transactions completed through its network have produced cost savings of between 92 and 95 per cent per transaction in some use cases, reduced processing time by 99.99 per cent and cut foreign-exchange requirements by as much as 80 per cent. Those figures are PAPSS measurements and will vary according to payment route, institution and transaction type.

Its expansion has accelerated across several regions this year. The Bank of Central African States joined in July, bringing the six countries of the Central African Economic and Monetary Community into the network. At that point, PAPSS said it connected 28 countries, more than 190 commercial banks and fintechs and 16 switches, while extended-network partners allowed payments to reach more than 250 additional institutions.

PAPSS is also preparing to broaden coverage further. Ogbalu has said the system aims to reach about 38 countries by the end of 2026 and ultimately connect all African countries within five years. South Africa remains the largest continental economy outside the network, though PAPSS has said discussions on participation are continuing.

The adoption strategy will place greater emphasis on customer awareness and on making PAPSS available through the banking and fintech channels already used by companies and individuals. The organisation also plans to prioritise payment corridors where trade and remittance flows can generate sustained transaction volumes rather than relying only on adding institutions to the network.

A February agreement with Kenya’s Pesalink linked 80 participants in that network to PAPSS, enabling cross-border transfers into banks and mobile-money operators in Kenya. PAPSS said the connection was designed to support round-the-clock payments settled securely and directly in local African currencies.

PAPSS currently offers three principal products: its instant payment system, the African Currency Marketplace and PAPSSCARD. The currency marketplace is designed to support exchange between African currencies, while the card initiative is intended to provide a continental payment card infrastructure. Additional services are being piloted, with announcements expected later this year.