Pesalink partners PAPSS to unlock cross-border payments in local currencies

Kenya’s instant payment network, Pesalink, has announced a landmark partnership with the Pan-African Payment and Settlement System (PAPSS), enabling seamless cross-border transactions across Africa in local currencies.

The collaboration allows individuals, SMEs, and businesses to make instant 24/7 bank-to-bank transfers between Pesalink’s 80-plus participants—including banks, fintechs, SACCOs, and telcos—and more than 160 commercial banks and fintechs connected to PAPSS.

Traditionally, cross-border payments in Africa have been costly and slow, often requiring correspondent banking arrangements and reliance on foreign reserve currencies. According to the World Bank’s 2023 Remittance Prices report, sending money across African borders costs an average of 7–8% of the transaction value, with settlement times stretching up to a week.

By integrating Pesalink into PAPSS, transactions will now be settled in local currencies, reducing costs and delays while boosting regional financial integration.
Speaking at the signing ceremony in Nairobi, PAPSS CEO Mike Ogbalu III emphasised the importance of collaboration:
“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 highlighted the benefits for Kenyan banks and their customers:
“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, operated by Integrated Payment Services Limited (IPSL) under the Kenya Bankers Association, is Kenya’s real-time interoperable payment network. Established in 2015, it connects banks, mobile money wallets, fintechs, and SACCOs, enabling 24/7 transfers via apps, online platforms, or USSD.

PAPSS, developed by Afreximbank in collaboration with the African Union and AfCFTA Secretariat, facilitates secure and efficient cross-border payments across Africa. With over 160 commercial banks onboard, PAPSS is driving financial integration and reducing reliance on external currencies in intra-African trade.

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