Pesalink and PAPSS have partnered to enable instant, local-currency cross-border bank payments across Africa.
Following this announcement, Kenya-based instant payment network Pesalink has signed a partnership agreement with the Pan-African Payment and Settlement System (PAPSS) to enable real-time, local-currency cross-border payments between Kenya and other African markets.
Under the agreement, Pesalink joins the PAPSS platform as a Technical Connectivity Provider. This connects more than 80 Kenyan banks, fintechs, SACCOs, and telcos on the Pesalink network to over 160 commercial banks and fintechs participating in PAPSS. The integration supports instant, 24/7 bank-to-bank and mobile money transfers settled in local currencies, reducing dependence on foreign reserve currencies and correspondent banking chains.
Addressing a persistent cost and speed gap
According to the announcement, cross-border payments within Africa remain among the most expensive and slowest in the world. According to the World Bank's 2023 Remittance Prices report, sending money across African borders costs an average of 7–8% of the total transaction value, above the global average of 6–7%. Settlement periods can extend from three to seven business days. With this in mind, the Pesalink–PAPSS integration is designed to reduce both the cost and the time involved in these transactions for individuals, SMEs, and businesses operating across borders.
The agreement marks the first time PAPSS has piloted a national switch for transaction termination in Kenya, according to a company official from PAPSS cited in the announcement. The partnership is intended to expand access to cross-border payment channels across the continent by connecting national and private switches into the PAPSS infrastructure.
For Kenyan financial institutions, the integration means they can offer cross-border payment services to their customers through existing Pesalink rails, without building separate correspondent relationships. The partnership is also positioned to support the broader objective of intra-African trade under the AfCFTA framework, which seeks to increase the volume of trade conducted between African nations. Both institutions will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
