Pesalink, Kenya’s most advanced 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 Pesalink-PAOSS partnership enables instant 24/7 cross-border payments from PAPSS 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.
PAPSS, 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 now connected to Kenyan banks, fintech, SACCOs and telcos
The instant payments solution is now a Technical Connectivity Provider. It means that 80 plus Kenyan bank, fintech, SACCOs and telco participants on the Pesalink network will be connected to 160 plus commercial banks and FinTechs on the PAPSS 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 three to seven business days.
The 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.”
Pesalink is owned by Kenya Bankers Association
Pesalink is Kenya’s instant and interoperable payment network. It facilitates the 24/7 payments between bank accounts, mobile money wallets, fintechs and SACCOs via apps, online or USSD.
The instant payments provider is operated by Integrated Payment Services Limited (IPSL) and owned by the Kenya Bankers Association.
IPSL was established in 2015 under the National Payment System Act. With more than 80 institutions already integrated, the network has become a central pillar of Kenya’s real-time payments infrastructure.
The Pan-African Payment and Settlement System (PAPSS) is the brainchild of Afreximbank, Africa’s pre-eminent trade finance institution, whose mission includes stimulating the expansion, diversification, and development of African trade.
PAPSS enables the efficient flow of money securely across African borders, minimizing risk and contributing to financial integration across the regions. Currently, it has more than 160 commercial banks on its platform.
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