Kenya’s instant payment network firm, Pesalink, now has access to the African Export-Import Bank (Afreximbank) Pan-African Payment and Settlement System (PAPSS), a move expected to ease cross-border payments and accelerate regional financial integration.
The partnership now allows Pesalink to conduct 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.
“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,” said Gituku Kirika, Pesalink Chief Executive Officer.
The move is also backed to help cut complex correspondent banking requirements and reliance on foreign reserve currencies.
PAPSS which is payment platform by Afreximbank in collaboration with the African Union and the AfCFTA Secretariat, enables cross-border payments between African countries, connecting to 160 commercial banks.
With Pesalink now a Technical Connectivity Provider, at least 80 Kenyan bank, fintech, SACCO and telco participants on the Pesalink network will be connected to the banks and fintechs on the PAPSS platform.
“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,” said Mike Ogbalu III, PAPSS CEO.
According to the 2023 World Bank Remittance Prices report sending money across African borders incurs on average 7-8pc of the total value sent (above the global average of 6–7%).
Additionally, settlement can also take three to seven business days making cross-border payments expensive and slow for many African businesses.
The Pesalink–PAPSS partnership is further backed to reduce costs, speed up settlements, and help individuals, SMEs and businesses send money more efficiently across borders.
