Kenyan company Pesalink merges with PAPSS, enabling banks and mobile financial service operators to process regional payments faster

Pesalink, Kenya's real-time payment network, has partnered with the Pan-African Payment and Settlement System (PAPSS) to facilitate cross-border payments and accelerate regional financial integration.

The partnership enables instant, 24/7 cross-border payments from PAPSS participants to banks and mobile payment operators within the Pesalink network in Kenya, settled in local currencies. This reduces complex correspondent banking requirements and dependence on reserve currencies.

PAPSS, an initiative of the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA secretariat, enables cross-border payments between African countries. Pesalink is currently the technical service provider for connectivity. This means that more than 80 Kenyan banks, fintech companies, savings and credit cooperatives (SACCOs), and telecommunications companies participating in the Pesalink network will be connected to more than 160 commercial banks and fintech companies on the PAPSS platform.

Cross-border payments remain costly and slow for many African businesses. The World Bank's 2023 report on remittance prices indicates that sending money outside Africa costs on average 7–8% of the total value of the transfer (above the global average of 6–7%). Settlement can also take between three and seven business days.

The Pesalink–PAPSS partnership will reduce costs, speed up settlements, and help individuals, SMEs, and businesses send money abroad more efficiently.

"For PAPSS to have a real impact, it is essential to collaborate with national and private operators such as Pesalink. Pesalink is the first operator with which we have conducted a pilot program for completing transactions in Kenya, and we are already seeing increased interest thanks to the opening of more channels enabling seamless cross-border payments in local currency across Africa." – Mike Ogbalu III, CEO of PAPSS "Kenyan banks will now be able to offer faster and cheaper cross-border payments. They will help their customers develop trade relationships in the region and thrive in a more integrated digital economy." – Gituku Kirika, CEO of Pesalink

"For PAPSS to have a real impact, it is essential to collaborate with national and private operators such as Pesalink. Pesalink is the first operator with which we have conducted a pilot program for completing transactions in Kenya, and we are already seeing increased interest thanks to the opening of more channels enabling seamless cross-border payments in local currency across Africa."

– Mike Ogbalu III, CEO of PAPSS

Kenyan banks will now be able to offer faster and cheaper cross-border payments. They will help their customers develop trade relationships in the region and thrive in a more integrated digital economy.

– Gituku Kirika, CEO of Pesalink