What's Happening?
Kenyan money transfer service Pesalink has announced a partnership with the Pan-African Payment and Settlement System (PAPSS) to facilitate cross-border payments and enhance regional financial integration. This collaboration allows for 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. The partnership aims to reduce the complexity of correspondent banking requirements and the reliance on foreign reserve currencies. PAPSS, an initiative of the African Export-Import Bank in collaboration with the African Union and the AfCFTA Secretariat, enables cross-border payments between African countries. Pesalink, now a Technical Connectivity Provider, connects over 80 Kenyan banks, fintechs, SACCOs, and telcos to more than 160 commercial banks and fintechs on the PAPSS platform.
Why It's Important?
The partnership between Pesalink and PAPSS is significant as it addresses the challenges of expensive and slow cross-border payments that many African businesses face. By reducing costs and speeding up settlements, the collaboration is expected to benefit individuals, SMEs, and businesses by enabling more efficient money transfers across borders. This development is crucial for fostering regional trade relationships and supporting the growth of a more integrated digital economy in Africa. The initiative also highlights the importance of collaboration between national and private financial systems to achieve impactful results in the financial sector.
