Pesalink, PAPSS Link to Cut Africa Cross-Border Costs

The agreement enables instant, 24/7 cross-border payments from PAPSS participants directly into banks and mobile money operators within Kenya’s Pesalink network — all settled in local currencies.

Kenya’s instant payment network Pesalink has partnered with the Pan-African Payment and Settlement System (PAPSS) in a move aimed at slashing the cost and time of cross-border payments and accelerating regional financial integration.

The agreement enables instant, 24/7 cross-border payments from PAPSS participants directly into banks and mobile money operators within Kenya’s Pesalink network — all settled in local currencies.

The integration reduces reliance on correspondent banking systems and foreign reserve currencies, two major bottlenecks that have historically slowed intra-African trade.

80+ Kenyan Institutions Connected to 160+ Across Africa

Under the partnership, Pesalink becomes a Technical Connectivity Provider to PAPSS.

This means:

• Over 80 Kenyan banks, fintechs, SACCOs and telcos on the Pesalink network will connect to

• More than 160 commercial banks and fintech institutions already on the PAPSS platform

The move significantly expands Kenya’s digital payment reach across the continent.

Tackling Africa’s High Remittance Costs

Cross-border payments within Africa remain among the most expensive globally.

According to the World Bank’s 2023 Remittance Prices report, sending money across African borders costs an average of 7–8% of the total amount transferred — above the global average of 6–7%. Settlement times can take three to seven business days.

By enabling real-time, local-currency settlement, the Pesalink–PAPSS partnership aims to:

• Reduce transaction costs

• Shorten settlement times

• Improve liquidity management

• Support SMEs and traders engaged in intra-African commerce

Driving AfCFTA Integration

PAPSS, backed by the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, was created to facilitate seamless cross-border payments under the African Continental Free Trade Area (AfCFTA).

PAPSS CEO Mike Ogbalu III said collaboration with national payment switches is critical to unlocking 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.

Boost for Kenyan Banks and SMEs

Pesalink CEO Gituku Kirika said the partnership positions Kenyan financial institutions to better serve businesses trading across the continent.

“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.

For small and medium enterprises (SMEs), which form the backbone of African economies, lower transaction costs and faster payments could significantly improve cash flow and competitiveness.

Accelerating Africa’s Payment Modernisation

The partnership signals growing momentum behind Africa-led financial infrastructure aimed at reducing dependency on external clearing systems and strengthening monetary sovereignty.

As more national payment systems connect to PAPSS, the continent moves closer to a fully integrated digital payments ecosystem — a key enabler of trade, investment and economic growth under AfCFTA.