PAPSS explained: how Africa's payment system skips the dollar

At a glance

What	A cross-border payment and settlement system for African currencies
Built by	Afreximbank, launched with the African Union on 13 January 2022
Started as	A pilot in the six countries of the West African Monetary Zone
How you use it	Through a participating bank, fintech or payment switch
Kenya link	Pesalink connected to PAPSS in February 2026: 80+ Kenyan participants to 160+ banks and fintechs
Chief executive	Mike Ogbalu III

Suppose a trader in Nairobi wants to pay a supplier in Accra. For years, the money typically went from shillings into US dollars, through a correspondent bank abroad, and then into cedis. It took days, cost fees at every step, and depended on both banks being able to get hold of dollars. The Pan-African Payment and Settlement System, or PAPSS, was built to cut out that detour.

What PAPSS is

PAPSS is a payment and settlement network for cross-border payments inside Africa. It was built by Afreximbank, the African Export-Import Bank, and publicly launched with the African Union on 13 January 2022. It began as a pilot in the six countries of the West African Monetary Zone and has since grown across the continent.

PAPSS describes itself as a way to move money "securely across African borders" in local currencies. Its chief executive is Mike Ogbalu III. It is overseen by a Governing Council of 12 central bank governors plus representatives of the AfCFTA, Afreximbank, the African Development Bank and the African Union.

How a payment moves

Based on PAPSS and Wikipedia's description of the settlement process. Checked 30 September 2026.

Step	What happens
1. Send	The buyer instructs their bank (or payment provider) to pay a supplier in another African country, in the buyer's own currency.
2. Route	The payment goes to PAPSS through the connected network.
3. Validate	PAPSS checks the instruction and passes it to the receiving side.
4. Pay out	The supplier receives the money in their local currency.
5. Settle	Across the day, payments between currencies are netted off. Central banks settle the remaining balances, with Afreximbank acting as settlement agent.

Netting is the key idea. If Kenyan businesses pay Ghanaian ones and Ghanaian businesses pay Kenyan ones on the same day, most of those payments cancel each other out. Only the difference needs settling between central banks, so far less hard currency changes hands than if every payment went through dollars.

Who is connected

The network is growing, and figures date quickly. Wikipedia's article on PAPSS listed 18 African central banks enrolled as of November 2025, including those of Ghana, Nigeria, Kenya, Egypt and Zimbabwe. In February 2026, Afreximbank announced that Kenya's Pesalink network was connected to PAPSS. That links more than 80 Kenyan banks, fintechs, SACCOs and telcos to more than 160 commercial banks and fintechs on the PAPSS platform. "For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential," Ogbalu said.

What it means for businesses

• Fewer conversions. You pay in your currency, and your supplier is paid in theirs.
• Speed. PAPSS is designed for real-time payments rather than multi-day correspondent banking.
• Less need for dollars. This matters most in countries where banks have struggled to get foreign currency.

The catch is coverage. PAPSS only works if both your bank and your supplier's bank or payment provider are connected, and in both countries. Ask your bank whether it offers PAPSS payments to the country you trade with, and what it charges.

What still limits it

• Adoption: many businesses and even bank staff don't yet know the option exists.
• Coverage gaps: not every central bank and commercial bank is connected yet.
• Currency markets: some African currencies trade rarely against each other, which makes pricing harder.

How it fits with the AfCFTA

The African Continental Free Trade Area lowers tariffs. PAPSS tackles the payment problem that tariffs don't touch. Together they are meant to make it as easy to trade with a neighbour as with a distant partner. Read our AfCFTA explainer, and for sending money home from abroad, our guide to sending money to Ghana from the UK.

Frequently asked questions