Pesalink, Kenya’s de facto instant payment network, has partnered with the Pan-African Payment and Settlement System(PAPSS) in a move set to ease cross-border transactions and accelerate regional financial integration.
The partnership will enable instant, 24/7 cross-border payments from PAPSS participants directly into banks and mobile money operators within the Pesalink network in Kenya. All transactions will be settled in local currencies, significantly reducing the need for complex correspondent banking arrangements and reliance on foreign reserve currencies.
PAPSS is an initiative of the African Export-Import Bank (Afreximbank), developed in collaboration with the African Union and the AfCFTA Secretariat. The platform facilitates cross-border payments across African countries, supporting trade and financial flows under the African Continental Free Trade Area framework.
Under the new arrangement, Pesalink becomes a Technical Connectivity Provider for PAPSS. This means more than 80 Kenyan banks, fintechs, SACCOs and telcos on the Pesalink network will be connected to over 160 commercial banks and fintechs on the PAPSS platform, creating a broader and more seamless payment ecosystem across the continent.
Cross-border payments in Africa have long been costly and slow. According to the World Bank’s 2023 Remittance Prices report, sending money across African borders costs between 7–8% of the total value sent—above the global average of 6–7%. Settlement timelines can also stretch between three and seven business days.
The Pesalink–PAPSS partnership aims to address these challenges by lowering transaction costs, accelerating settlement times, and enabling individuals, SMEs and corporates to move money across borders more efficiently.
Speaking during the partnership signing at Pesalink’s offices in Nairobi, PAPSS CEO Mike Ogbalu III said collaboration with national and private switches is key 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.
Pesalink CEO Gituku Kirika noted that the partnership will empower Kenyan financial institutions to better serve customers engaged in regional trade.
“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,” Kirika said.
The partnership marks a significant milestone in Africa’s push toward deeper financial integration, positioning Kenya as a key gateway for instant, local-currency cross-border transactions across the continent.