PAPSS commercial launch set for January 2022
The Pan-African Payment and Settlement System created to enable instant, cross-border payments in local currencies between African markets will be launched commercially in January 2022. Speaking to CNBC Africa’s Wole Famurewa, CEO of PAPSS, Mike Ogbalu, says plans are ongoing to rapidly expand the payment platform beyond West Africa and accelerate Intra-Africa trade.
Wed, 17 Nov 2021 11:51:46 GMT
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AI Generated Summary
- PAPSS will facilitate seamless cross-border payments in local currencies, benefiting individuals, businesses, and governments, and fostering increased trade and economic activity across Africa.
- The platform's design allows for each country's central bank to set transaction limits and define qualifying transactions, ensuring flexibility and compliance with local regulations.
- The commercial launch of PAPSS in January 2022 marks the beginning of its expansion beyond West Africa, with plans to collaborate with existing regional payment systems to enhance connectivity and interoperability across the continent.
The Pan-African Payment and Settlement System created to enable instant, cross-border payments in local currencies between African markets is set to be launched commercially in January 2022. In an exclusive interview with CNBC Africa's Wole Famurewa, CEO of PAPSS, Mike Ogbalu, revealed plans to rapidly expand the payment platform beyond West Africa and accelerate intra-African trade. PAPSS is set to revolutionize the financial landscape of the continent, impacting individuals, businesses, and governments alike. The platform will facilitate seamless person-to-person, business-to-business, and government payments, enabling entities like airlines to easily repatriate their collections across borders. This ease of transactions is expected to stimulate trade and economic growth across Africa. When questioned about transaction limits and volume, Ogbalu highlighted that each country's central bank will define the qualifying transactions and limits in their markets, emphasizing that PAPSS can support a wide range of transaction values. The CEO also shared that the commercial launch of PAPSS is scheduled for January 13, 2022, with plans to expand beyond West Africa shortly. The platform has already gained significant traction in West Africa, with six WAMZ countries actively exchanging transactions, and new central banks are set to join PAPSS in the near future. Ogbalu emphasized that PAPSS aims to collaborate with existing regional payment systems to improve interoperability and enhance connectivity across Africa. The potential impact of PAPSS on the financial technology sector is immense. By creating a unified market of 1.3 billion people through the AFCFTA, PAPSS will empower FinTech companies to innovate at scale, similar to their counterparts in larger markets like China. This unified market will enable FinTechs to develop solutions that cater to the entire African continent, fostering entrepreneurship and job creation. Moreover, PAPSS is expected to reduce dependencies on external currencies and promote the trading of African currencies, further enhancing economic autonomy and growth. Overall, the success of PAPSS is forecasted to drive business expansion, increase efficiency, and attract investment to Africa, positioning the continent for a significant economic boom and integration into the global financial ecosystem.
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