Nine months after the Pan-African Payment Settlement System (PAPSS) was launched, the first cross border transaction has been consummated, with Nigeria breaking the milestone and kick-starting trade and payments amongst countries in the continent.
The PAPSS was launched on January 13, 2022 across the financial & payments systems of some countries in Africa with the collaboration of the Africa Export-Import Bank (Afreximbank) in partnership with the African Union (AU) and the African Continental Free Trade Area (AfCFTA).
NATIONAL ECONOMY gathered that the first transaction on PAPSS which was made possible via the NIBSS platform for interoperability was consummated between the Ghana Commercial Bank and First Bank of Nigeria Plc.
PAPSS serves as a cross-boarder payments and settlement platform for the Africa continent.
It is available leveraging the NIBSS Instant Payment platform for commercial banks, Fintechs, payment service providers, card schemes and other payment industry players to integrate for Intra-African Trade and other economic activities among African countries.
The payment platform aims at simplifying transactions by transforming and facilitating payment, clearing and settlement for cross-border trade across Africa. PAPSS recognises over 41 currencies and it enables instant, diaspora payments in local currencies between African markets. It avails an opportunity for a customer in one African country to pay in their own currency, while the beneficiary in another country receives value in their own local currency.
It is also designed to reduce transaction time and cost of cross-border financial services by curbing dependency on hard currency and major unknown transaction delays.
With banks at various stages of connection through NIBSS for the PAPSS integration, Leadership findings show that deposit money banks are currently undergoing certification, integration and migration to the PAPSS will Go-live and also consummate live transactions in the coming weeks.
