Kenyan banks have unlocked 24/7 cross-border transfers settled in local currencies following a partnership between Pesalink and the Pan-African Payment and Settlement System (PAPSS).
This integration enables instant cross-border payments from PAPSS participants directly into banks and mobile money operators within the Pesalink network in Kenya.
In a press statement dated February 26, the Pesalink network confirmed the partnership aimed at accelerating regional financial integration.
“Pesalink, Kenya’s de facto 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,” read the statement in part.
About the Pesalink–PAPSS Deal
According to the statement, this 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,” the statement read.
The Pan-African Payment and Settlement System (PAPSS), an initiative of the African Export-Import Bank in collaboration with the African Union and the AfCFTA Secretariat, was described as a platform that facilitates cross-border payments between African countries.
Additionally, Pesalink was confirmed to have become a Technical Connectivity Provider, linking its network to PAPSS.
Through the integration, more than 80 Kenyan banks, fintechs, SACCOs, and telcos on the Pesalink network are now connected to over 160 commercial banks and fintechs operating on the PAPSS platform across Africa.
Pesalink Chief Executive Officer Gituku Kirika said Kenyan banks would be able to offer faster and more affordable cross-border payments, enabling customers to expand regional trade and operate in a more integrated digital economy.
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“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,” he said.
Cross-Border Payment Costs Targeted
According to the Pesalink statement, cross-border payments have been costly 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.”
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The partnership between Pesalink and the Pan-African Payment and Settlement System (PAPSS) was presented as a solution to reduce costs, accelerate settlements, and improve efficiency for individuals, SMEs, and businesses.
PAPSS Chief Executive Officer Mike Ogbalu III stated that collaboration with national and private payment switches was essential to achieving meaningful impact.
“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,” he said.
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