Nigeria is the first African nation to successfully complete a transaction using the Pan-African Payment and Settlement System (PAPSS).
This follows the payment gateway’s conception in January 2022, which was done in an effort to support and advance the African Continental Free Trade Area (AfCFTA).
In partnership with the African Union (AU), the African Export-Import Bank (Afreximbank), and the AfCFTA, PAPSS accomplished the feat in Africa.
According to information obtained by THISDAY, the Nigeria Inter-Bank Settlement System Plc (NIBSS) enabled the first transaction on the PAPSS platform, which was successfully completed between the Ghana Commercial Bank and First Bank of Nigeria Plc.
PAPSS acts as the continent’s channel for cross-border payments and settlement. Commercial banks, Fintechs, payment service providers, card schemes, and other payment industry players can integrate for intra-African trade and other economic activities among African nations using the NIBSS Instant Payment platform.
By transforming and facilitating payment, clearing, and settlement for cross-border trade across Africa, the payment platform aims to simplify transactions.
PAPSS supports instant diaspora payments in local currencies between African markets and recognizes over 41 different currencies.
The beneficiary in another country receives value in their own local currency, giving customers in one African nation the option to pay in their own currency.
By reducing reliance on hard currency and significant unanticipated transaction delays, it was also created to cut down on transaction time and cost for cross-border financial services. Deposit money banks that are currently undergoing certification, integration, and migration to the PAPSS will go live and also complete live transactions in the upcoming weeks, according to information gathered from banks at various stages of connection through NIBSS for the PAPSS integration.