Nigeria becomes the first country in Africa to record the first successful transaction through the Pan-African Payment and Settlement System (PAPSS). This comes after the payment gateway was conceptualized January 2022, in a bid to promote and aid the African Continental Free Trade Area (AfCFTA).
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The feat recorded by PAPSS in Africa was in collaboration with the Africa Export-Import Bank (Afreximbank) in partnership with the African Union (AU) and the AfCFTA.
The first transaction on the PAPSS platform was made possible by the Nigeria Inter-Bank Settlement System Plc (NIBSS) and the successful transaction occurred between the Ghana Commercial Bank and First Bank of Nigeria Plc.
PAPSS serves as a cross-border payments and settlement platform for the African continent. It is available leveraging the NIBSS Instant Payment platform for commercial banks, Fintechs, payment service providers, card schemes, and other payment industry players to integrate for Intra-African Trade and other economic activities among African countries.
The payment platform aims at simplifying transactions by transforming and facilitating payment, clearing and settlement for cross-border trade across Africa.
PAPSS recognises over 41 currencies and it enables instant, diaspora payments in local currencies between African markets.
It provides an opportunity for a customer in one African country to pay in their own currency, while the beneficiary in another country receives value in their own local currency.
It was also designed to reduce transaction time and cost of cross-border financial services by curbing dependency on hard currency and major unknown transaction delays. Banks at various stages of connection through NIBSS for the PAPSS integration, it was gathered that deposit money banks are currently undergoing certification, integration, and migration to the PAPSS will Go-live and also consummate live transactions in the coming weeks.