Pesalink has partnered with the Pan-African Payment and Settlement System (PAPSS) to ease cross-border payments and speed up regional financial integration.
- •The 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.
- •PAPSS, an initiative of the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, enables cross-border payments between African countries.
- •The Pesalink link has more than 80 participants within Kenya's financial ecosystem, while over 160 commercial banks and fintechs are on the PAPSS network.
"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,” PAPSS CEO Mike Ogbalu II said.
The partnership will reduce complex correspondent banking requirements and reliance on foreign reserve currencies.
Pesalink CEO, Gituku Kirika, said “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.”
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.
