Intra-trade collaboration unveiled between Onafriq and PAPSS announced
**West Africa and the Continent Witness a Leap in Cross-Border Payments with Onafriq-PAPSS Partnership**
In a significant move for the African continent, Onafriq, a leading Pan-African payments company, has partnered with the Pan-African Payments Settlement System (PAPSS). This collaboration aims to revolutionise cross-border payments across West Africa and beyond.
The PAPSS system, launched by Afreximbank in collaboration with the African Union in 2019, currently integrates countries such as Nigeria, Ghana, Liberia, The Gambia, Guinea, Sierra Leone, Kenya, Zimbabwe, Zambia, and Djibouti, with Morocco recently joining the network, bringing the total number of African countries on the platform to 17.
The Onafriq-PAPSS partnership offers several key benefits. Firstly, it enables instant, secure, and affordable digital remittances for businesses and individuals using PAPSS infrastructure and regulatory coverage. The service is designed to be available via mobile money platforms and fintech wallets, broadening access and convenience for users. Settlement is supported by the African Export-Import Bank (Afreximbank), ensuring trusted and timely resolution of transactions.
Financial inclusion and accessibility are also at the heart of this partnership. By lowering traditional barriers to cross-border payments, the collaboration aims to make financial services more accessible to Small and Medium Enterprises (SMEs) and individuals, particularly in Ghana and neighbouring countries. The solution is positioned to “bring people together and enhance economic activity,” by reducing reliance on cash and informal channels. The pilot program is government-approved (by the Bank of Ghana), signalling regulatory endorsement and a pathway for wider adoption.
The service is expected to reduce liquidity burdens on participants, offering better exchange rates and more efficient settlement processes. This enhancement is critical for intra-African trade, where cash flow and foreign exchange constraints often hinder business operations.
Innovation and scalability are also at the forefront of this partnership. Onafriq’s recent partnership with Circle allows for cross-border payments using stablecoin technology, further modernising payment rails and improving interoperability across Africa. The six-month pilot phase will test and refine transaction flows, user adoption, and market performance, with the potential to expand to other African markets. Over time, the initiative may reduce the relevance of national borders for financial transactions, aligning with broader African economic integration goals.
The Onafriq-PAPSS partnership is a concrete step towards the African Continental Free Trade Area (AfCFTA) vision, which seeks to create a single market for goods and services. By making cross-border payments seamless, the arrangement supports intra-regional trade, business expansion, and remittance flows, critical for economic growth in West Africa.
Traditional cross-border payments in Africa are often slow, expensive, and opaque. The Onafriq-PAPSS solution addresses these pain points, potentially lowering transaction costs and settlement times for businesses and consumers. Enhanced efficiency can attract more businesses—especially SMEs—to participate in formal, regional trade networks.
The service’s integration with mobile money and digital wallets means it can reach users in rural and underserved regions, not just urban financial hubs. This could accelerate financial inclusion and support broader economic participation across the continent.
The partnership demonstrates how fintech innovators (Onafriq), pan-African financial infrastructures (PAPSS), and multilateral banks (Afreximbank) can collaborate under regulatory oversight to build scalable, interoperable solutions. Success in Ghana could serve as a blueprint for other African countries, encouraging further harmonisation of payment systems and regulations.
In conclusion, the Onafriq-PAPSS partnership represents a significant leap forward for cross-border payments in West Africa and across the continent. By combining technological innovation, regulatory support, and pan-African financial infrastructure, the collaboration delivers tangible benefits—speed, security, lower costs, and broader access—while laying the groundwork for deeper economic integration and financial inclusion in Africa. If the pilot succeeds, the model could transform regional commerce and set a new standard for digital finance in Africa.
The Onafriq-PAPSS partnership offers swift, secure, and economical digital remittances for businesses and individuals, leveraging technology supported by the African Export-Import Bank (Afreximbank)'s settlement system. This collaboration is also designed to improve cross-border finance and business transactions across West Africa and beyond, promoting financial inclusion by making services more accessible for Small and Medium Enterprises (SMEs) and individuals.
