Pesalink, Kenya’s de facto instant payment network, has partnered with the Pan-African Payment and Settlement System (PAPSS) to ease cross-border payment and speed up regional financial integration.
The partnership enables instant 24/7 cross-border payments from Pan-African Payment and Settlement System participants into banks and mobile money operators within the Pesalink network in Kenya, all settled in local currencies. This reduces complex correspondent banking requirements and reliance on foreign reserve currencies.
Pan-African Payment and Settlement System, an initiative of the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, enables cross-border payments between African countries. Pesalink is now a Technical Connectivity Provider. It means that more than 80 Kenyan banks, Fintechs, SACCOs, and telcos on the Pesalink network will be connected to more than 160 commercial banks and fintechs on the Pan-African Payment and Settlement System platform.
Cross-border payments remain expensive and slow for many African businesses. The 2023 World Bank Remittance Prices report indicates that sending money across African borders incurs on average 7-8% of the total value sent (above the global average of 6–7%). Settlement can also take between three to seven business days.
The Pesalink–Pan-African Payment and Settlement System partnership will reduce costs, speed up settlements, and help individuals, SMEs and businesses send money more efficiently across borders.
Speaking during the partnership signing held at Pesalink offices in Nairobi, PAPSS CEO Mike Ogbalu III said,
“For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential. 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, said,
“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.”