8 Central Banks integrated with PAPSS since launch

In a move that marks a significant milestone for cross-border payments in Africa, the Pan-African Payment and Settlement System (PAPSS) has successfully integrated eight Central Banks since its launch in January this year. Mike Ogbalu, the CEO of PAPSS, provided an update on the progress of this groundbreaking payment platform. The journey towards creating a continent-wide payment system dates back to the formation of the African Union in 1963. The vision of African leaders was to foster prosperity through seamless financial transactions. Recognizing the crucial link between payments and trade, Ogbalu emphasized that addressing payment frictions is essential to facilitate trade acceleration. The commercial launch of PAPSS on January 13, 2022, marked a significant step forward. Since then, PAPSS has integrated the National Switch systems of Nigeria, Ghana, and the Gambia, along with several Central Banks in the West, East, and Southern African regions. Ogbalu highlighted the progress made and projected a surge in transactions as the platform moves into Q3 of this year. By early next year, measurable impacts of the payment system are expected to be evident, revolutionizing cross-border trade in Africa. PAPSS aims to enhance transparency by tracking and documenting trade volumes passing through its platform. This data will demonstrate the system's tangible impact on the continent's economic landscape. The CEO emphasized the importance of building trust among users, especially those hesitant to adopt new payment systems. Ogbalu outlined three key components in establishing trust: delivering a reliable product, showcasing the system's value in trade facilitation, and integrating existing payment systems to create a seamless experience. By promoting interoperability and ensuring speedy transactions in local currencies, PAPSS aims to strengthen African currencies and bolster economic growth. Addressing risks associated with cross-border transactions, Ogbalu emphasized PAPSS's robust risk management strategies. The platform's pre-funded system, technological safeguards, and fraud detection mechanisms minimize potential risks. Moreover, PAPSS has allocated $500 million to support Central Banks in settling transactions promptly. Looking ahead, Ogbalu discussed PAPSS's future direction. With a focus on stakeholder collaboration, technological innovation, and data processing efficiency, PAPSS remains at the forefront of modernizing cross-border payment systems. The CEO underscored the potential of blockchain technology and other advancements in enhancing the platform's capabilities. As PAPSS continues to evolve, it aligns with global trends and adapts to meet the changing needs of its diverse user base, positioning itself as a groundbreaking solution for seamless cross-border transactions in Africa.