KCB Group of Kenya and Bank of Kigali of Rwanda are the first banks to adopt the Pan-African Payment and Settlement System (PAPSS), aimed at enhancing intra-African trade. Developed by key organizations, PAPSS streamlines transactions by eliminating third-party currencies, leading to faster, cheaper, and more secure payments. The system’s successful launch is expected to spark economic integration within Africa.
KCB Group of Kenya and Bank of Kigali of Rwanda have become the inaugural banks in their nations to adopt the Pan-African Payment and Settlement System (PAPSS). This integration aims to enhance intra-African trade and improve financial connectivity among countries.
PAPSS, developed by entities including Afreximbank and the African Union Commission, is designed to eliminate reliance on third-party currencies and correspondent banks. This system seeks to render cross-border transactions more efficient, less expensive, and secure.
The Bank of Kigali officially launched PAPSS on February 26 in Kigali, followed closely by KCB Group on February 27 in Nairobi. The integration allows customers to make payments across various African nations using mobile applications and branch networks.
Mike Ogbalu III, CEO of PAPSS, emphasized that “This transformation unlocks new opportunities for trade and investment, allowing African SMEs to access broader markets and contribute to local economies.” Paul Russo, CEO of KCB Group, remarked, “We want to play a bigger role in catalyzing trade and payments in Africa, leveraging our digital capabilities and regional footprint.” Dr. Diane Karusisi, CEO of Bank of Kigali, noted, “Entrepreneurs in Rwanda can now receive payments instantly in Rwandan francs or USD from any member country. This service is fast, affordable, and reliable.”
Since its pilot launch in 2022, PAPSS has increased its reach to include 15 central banks, over 150 commercial banks, and 14 payment switches. With only 16% of Africa’s total trade taking place within the continent, PAPSS is integral in streamlining financial transactions and promoting economic integration across Africa.
The integration of PAPSS by KCB Group and Bank of Kigali marks a significant step in enhancing financial connectivity and facilitating trade within Africa. With endorsements from leaders in the banking sector, this system is poised to offer innovative solutions for seamless transactions. As PAPSS continues to expand, it aspires to accelerate economic integration, making intra-African trade more productive and secure.
Original Source: techlabari.com
